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The world might start ending for bankster loan-sharking. That's the end of the world they're talking about.
Germany gotta be careful. After all, they're one of the biggest engineers and beneficiaries of the eurozone. One of the biggest issues with the Mark was that it appreciated too quickly, and exports became too expensive for their Euro partners. They had to play extensively with inflation to remain compe ive. The eurozone solved all of these problems for them.
The world might start ending for bankster loan-sharking. That's the end of the world they're talking about.
There is much worse that could happen actually. But being a small relatively unified country the likelihood is not great.
http://www.spiegel.de/international/...a-1042037.html
Some German views.
Literary prose. Not much analysis here.
This is much sharper.
Gotta feel the pulse of another country.
The 2nd is highly critical of the German government so I expected it might be more popular. This is the paper is very careful when criticizing Israel, it's definitely on the liberal end of the German voice IMO. There are some prior articles that were very critical of the Greeks that are a little dated; before there was even anything to vote on.
Backlash grows against Germany
Where pressure had been mounting on Greece to accept the terms of the bailout before Sunday's vote, it's now turning on Germany to soften its hard line.
European officials want to see a resolution to the crisis as soon as possible — whether the terms are more favorable to creditors or to Greece — and Germany's power is genuinely unnerving to some of its European partners.
They may have an appreciation for history: A strong, unified Germany has not always been good for the rest of the continent.
http://www.vox.com/2015/7/7/8905647/...gainst-germany
All eurozone PMs and FMs jetted their asses to Brussels for meeting and promised new Greek offer, yet Greeks came empty handed. They'll present it tomorrow, over teleconference, apparently. Bloody joke.
Lone Star Bailout
Jared Bernstein weighs in on the big No, hopes that it leads to a change in Europe’s approach, but acknowledges the political difficulties:
To be fair, it’s not that simple. There are structural political factors in play, endemic to the fact that the currency union is not a political union, nor a fiscal union, nor a banking union. As one German economist put it to me, “How do you think the people of Manhattan would like bailing out Texas?” Fair point, and a non-trivial challenge, for sure.
Ahem. As it happens, the people of Manhattan did bail out Texas, big time. I wrote about it here. The savings and loan crisis, which was very costly to taxpayers, was mainly a Texas affair:
The cleanup from that crisis cost taxpayers about $125 billion (pdf), back when that was real money. As best I can tell, around 60 percent of the losses were in Texas (pdf). So that’s around $75 billion in aid — not loans, outright transfer.
Texas GDP was about $300 billion in 1987. So this was equivalent to giving — not lending, not even taking an equity stake — Spain 25 percent of its GDP to bail out its banks.
But of course Manhattan was never asked to bail out Texas; we had a national system of deposit insurance, and the big Lone Star bailout was automatic.
http://krugman.blogs.nytimes.com/201...ailout-2/?_r=0
any of you kickers got different numbers?
So, they are getting a worse deal after all, or they are planning not paying anything down the line?
Short of being ostracized from the community [BRICS would probably swoop in anyway] how can Greece be forced to pay?So, they are getting a worse deal after all, or they are planning not paying anything down the line?
Germany should have moved on and they should have been left to starve because nobody can stop them from doing the same again
Their government actually threatened to open up it's border to African/ME refugees. At that point Europe would have to invade.Germany should have moved on and they should have been left to starve because nobody can stop them from doing the same again
Isn't that what European leaders want anyway? Isn't Syriza a pro-immigrant party? Or maybe they just want to do it slowly.
austerity fails again. Repugs love austerity (when applied to the govt and the poor). Repugs are much bigger threat to USA than Muslim terrorists.
Credit
It’s now clear, or should be clear, that the Greek program was doomed to failure without major debt relief; no matter how hard the Greeks tried, austerity would shrink GDP faster than it reduced debt relative to the baseline, so that the debt situation was bound to worsen even as the attempt to balance the budget imposed vast suffering.
And there was no good, or even non-terrible, answer given Greece’s membership in the euro.
But there’s a broader lesson from Greece that is relevant to all of us — and it’s not the usual one about mending our free-spending ways lest we become Greece, Greece I tell you. What we learn, instead, is that fiscal austerity plus hard money is a deeply toxic mix. The fiscal austerity depresses the economy, and pushes it toward deflation; if it’s accompanied by hard money (in Greece’s case the euro, but a fixed exchange rate, a gold standard, or any kind of obsessive fear of inflation would do the trick), the result is not just a depression and deflation, but quite likely a failure even to reduce the debt ratio.
For comparison, look at everyone’s favorite example of successful austerity, Canada in the 1990s. Canada came in with gross debt of roughly 100 percent of GDP, roughly comparable to Greece on the eve of the financial crisis. It then proceeded to do a pretty big fiscal adjustment — 6 percent of GDP according to the IMF’s measure of the structural balance, which is about a third of what Greece has done but comparable to other European debtors. But unemployment fell steadily. What was Canada’s secret?
The answer was, easy money and a large currency depreciation. These offset the drag from austerity, allowing growth to continue.
So, how does this play into U.S. policy debates?
Well, Republicans love to warn that America might turn into Greece any day now.
But look at the policy mix that is now de facto GOP orthodoxy:
sharp cuts in government spending (maybe offset by tax cuts for the rich, but these won’t provide much stimulus),
combined with a monetary policy obsessed with fears of dollar “debasement”.
That is, the conservative side of the US political spectrum, while holding up Greece as a cautionary tale, is actually demanding that we emulate the policy mix that turned Greek debt into a complete disaster.
http://krugman.blogs.nytimes.com/201...gion=Body&_r=1
Glad to see you quoting the same guy that believes price gouging laws are bull .austerity fails again. Repugs love austerity (when applied to the govt and the poor). Repugs are much bigger threat to USA than Muslim terrorists.
Credit
It’s now clear, or should be clear, that the Greek program was doomed to failure without major debt relief; no matter how hard the Greeks tried, austerity would shrink GDP faster than it reduced debt relative to the baseline, so that the debt situation was bound to worsen even as the attempt to balance the budget imposed vast suffering.
And there was no good, or even non-terrible, answer given Greece’s membership in the euro.
But there’s a broader lesson from Greece that is relevant to all of us — and it’s not the usual one about mending our free-spending ways lest we become Greece, Greece I tell you. What we learn, instead, is that fiscal austerity plus hard money is a deeply toxic mix. The fiscal austerity depresses the economy, and pushes it toward deflation; if it’s accompanied by hard money (in Greece’s case the euro, but a fixed exchange rate, a gold standard, or any kind of obsessive fear of inflation would do the trick), the result is not just a depression and deflation, but quite likely a failure even to reduce the debt ratio.
For comparison, look at everyone’s favorite example of successful austerity, Canada in the 1990s. Canada came in with gross debt of roughly 100 percent of GDP, roughly comparable to Greece on the eve of the financial crisis. It then proceeded to do a pretty big fiscal adjustment — 6 percent of GDP according to the IMF’s measure of the structural balance, which is about a third of what Greece has done but comparable to other European debtors. But unemployment fell steadily. What was Canada’s secret?
The answer was, easy money and a large currency depreciation. These offset the drag from austerity, allowing growth to continue.
So, how does this play into U.S. policy debates?
Well, Republicans love to warn that America might turn into Greece any day now.
But look at the policy mix that is now de facto GOP orthodoxy:
sharp cuts in government spending (maybe offset by tax cuts for the rich, but these won’t provide much stimulus),
combined with a monetary policy obsessed with fears of dollar “debasement”.
That is, the conservative side of the US political spectrum, while holding up Greece as a cautionary tale, is actually demanding that we emulate the policy mix that turned Greek debt into a complete disaster.
http://krugman.blogs.nytimes.com/201...gion=Body&_r=1
Sincerely,
ter McGee
This is such a circus... they already know Greece won't be able to repay whatever they loan now... this loan would add up to 300 billion in bailout debt alone. Unless there's a haircut at some point, this isn't going to fly long term.
I had to google but yes Syriza has some of the most progressive Immigration policies in the EuroZone
Those refugees are mainly showing up on European shores because of Euro butt buddy: the USA military [destabilizing governments]. So maybe the conflict will bring long term changes to how Europe views it's foreign relationships. In my lifetime, Immigration will not return to how it was the previous decade
It's an issue I am conflicted with. These refugees certainty don't "look European" and at the moment they sure as don't practice European culture but many are Christian. I'm not currently practicing religion but I understand it's necessary for Europes survival. This atheist and uber-liberal path the Western/Northern Europeans have taken will result in our Continent being over-run by barbarians again. Will these people end up switching to Islam down the road anyway? Where is the line and what is more important: looking European VS practicing European culture? Sure many [White] Americans look European but they don't possess the same ideals or values that even European Muslims do.
Multiculturalism in the long run will benefit Europe economically. But at what cultural price? Not looking good for the White Race, that is a foregone conclusion.
https://euobserver.com/news/129570The proposal sent to Brussels Thursday evening (9 July), sets out plans to save around €13bn, far more severe than the package of €8 billion of spending cuts and tax rises contained in the proposal rejected by Sunday's referendum.
It has also been submitted to the Greek parliament and is set to be debated and voted on Friday.
It contains much of what was proposed to creditors two weeks ago, including increasing the retirement age to 67, but goes further in the areas of VAT reform and pensions. The plan would also scrap Greece’s scheme of offering supplementary pensions to the poorest people by 2019, a year ahead of the 2020 deadline previously proposed.
It also includes increases to VAT aimed at generating savings worth 1 percent of GDP, and a further €300 million in cuts to defence spending over the next two years.
More controversially, the left-wing Syriza government is proposing to increase taxes on low earners if its proposals lead to ‘fiscal shortfalls’.
Should the package not raise the €13 billion target, the government will increase taxes on incomes below €12,000 from 11 percent to 15 percent, and to 35 percent on wages over €12,000.
the original lenders going back to early 2000s should never have lent the money. This disaster ain't all on Greece, just like the US foreclosure disaster was not all on the borrowers, but primarily on the lenders.
lmao Europe pretty much kicking them out... now Greece need to show them the middle finger and dollarize their economy...
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