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Although this thread does not function under the same strict guidelines as the USPMT, it is still a general practice on TL to provide a source with an explanation on why it is relevant and what purpose it adds to the discussion. Failure to do so will result in a mod action. |
On March 01 2015 05:37 Taguchi wrote:Show nested quote +On March 01 2015 03:04 hannahbelle wrote:On March 01 2015 01:01 Toadesstern wrote:On March 01 2015 00:43 kwizach wrote:On February 28 2015 15:54 hannahbelle wrote:On February 28 2015 15:27 Sub40APM wrote:On February 28 2015 11:42 hannahbelle wrote:On February 28 2015 05:11 Sub40APM wrote:On February 27 2015 23:23 always_winter wrote:On February 27 2015 20:01 Wegandi wrote:
[quote]
Actually production is the lifeblood of an economy. After all, if there is no production there is no consumption. I don't want to de-rail the thread too much though, except that your analysis is laughably wrong. Keynes ghost still haunts us. /shiver
Also, did you read your second paragraph and not note the disconnect? Cavalier spending? That's what negative interest rates and QE (printing / creating mass amounts of fiduciary media/currency) encourage, and was the reason for the situation we got ourselves into. I don't think you bothered to check Greenspans interest rates from 98' to 07' did you? Funny your analysis.
Europe is living in a fantasy where the idea that you can have massive Social Welfare systems along with open-door policies, coupled with the idea that you can pay for this through financial manipulation (fiat credit) & have 'economic stability' is about as absurd as a politician promising 45$ minimum wage as the solution to poverty. It's like no one learned anything from Cantillon and the Mississippi Company. Don't worry, reality always wins in the end no matter how delusional you may believe something (Keynesianism).
Massive social welfare systems are quite literally the target of these austerity measures, with crippling effect on the so-called European "welfare states." To suggest the EU is operating in contrast to this notion, and actually seeking to perpetuate social spending, is beyond my comprehension. There are several straw men I won't entertain, including an invitation to a theoretical debate regarding the chicken and the egg, but I can assure you low interest rates were not the cause of the housing market crash. Cavalier spending by low-income individuals was a direct result of inadequate oversight (note the connect) of the mortgage industry regarding sub-prime loans and the repayment ability of low-income borrowers. These loans were then sold to MBS's under false pretenses, triggering an economic crisis in which low-income borrowers were stuck with mortgages they could not repay and our nation's largest financial institutions were stuck with investments that could neither be sold nor recovered. ...you are talking to a guy who wants to bring back the gold standard and thinks the Federal Reserve is the thing that is keeping American entrepreneurship from generating 10% growth like it did before America had central banking. Meanwhile in Russia, opposition figures are being placed either under arrest or executed in the middle of Moscow... Keynes is proven wrong more and more everyday. But you and Krugman keep holding onto the dream... Yep, that hyper inflationary wave is swallowing America. Give it time my friend...give it time. How is "give it time" supposed to be an argument? Either the "inflationary wave" happens with the rounds of QE or it doesn't. We've seen it didn't, and it's been explained pretty well why it didn't, including by Krugman. Saying "give it time" is meaningless. Did not happen? Not enough time given yet! Did already happen? Told ya! I'm sorry. Do the effects of economic policy happen overnight where you live? Alan Greenspan, 2010.5 years later, USA didn't go for austerity policies and is now on the upswing. Europe did go for austerity policies and is in the midst of a deflationary spiral (ironically, to counter this they're now embracing monetary expansion but since everyone else is doing the same thing it likely won't be as impactful as the American one), political upheaval (sooo many fringe parties gaining traction, both from the left and (much more unfortunately) the nationalist right of the political spectrum) along with widespread misery for a whole lot of people. Clearly reality is wrong about what's been happening, it should be taught a lesson.
Oh lawlz. You really believe everything the administration puts out? Most experts would hardly call the US on the upswing. Unemployment is abysmal, even the head of Pew Research came out about the fallacy of our numbers. Many studies show wage stagnation on an epic scale. So I have to ask, where is this upswing you cite? It's not in employment and its not in wages. Lending is still in the gutter as well.
What you call an upswing is actually barely treading water, despite pumping trillions into the economy. The amount of money that is being printed is staggering, and has had little effect on the economic situation. The short term may be painful in Europe, but they will be better off long-term with austerity. In the long-run, we across the pond, will have to deal with runaway inflation brought on by poor economic policy guided by a failed thesis promoted almost a hundred years ago in vastly different economic realities.
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OK hannahbelle, we shouldn't believe statistics either since they don't suit you.
So what's the count now? Ignore official statistics, ignore markets, ignore direct comparisons with other regions of the world that did go for your prescribed policies and are currently doing far worse, ignore failed predictions made by the guy who presided over the worst crisis since 1929 as head of the FED and actually endorses your view...
Once again, reality calls, ignore it at your peril.
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No European country really embraced austerity though... The burden of government is as high as ever. They just hemmed and hawed a lot about tiny cuts and raised taxes.
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On March 01 2015 06:30 Taguchi wrote:
OK hannahbelle, we shouldn't believe statistics either since they don't suit you.
So what's the count now? Ignore official statistics, ignore markets, ignore direct comparisons with other regions of the world that did go for your prescribed policies and are currently doing far worse, ignore failed predictions made by the guy who presided over the worst crisis since 1929 as head of the FED and actually endorses your view...
Once again, reality calls, ignore it at your peril.
What statistics? You haven't offered any to back your view up. I offered unemployment, wage growth, and bank lending.
Besides, comparing the U.S. with Europe in terms of economies is rather pointless.
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On February 28 2015 15:54 hannahbelle wrote:Show nested quote +On February 28 2015 15:27 Sub40APM wrote:On February 28 2015 11:42 hannahbelle wrote:On February 28 2015 05:11 Sub40APM wrote:On February 27 2015 23:23 always_winter wrote:On February 27 2015 20:01 Wegandi wrote:On February 26 2015 06:08 always_winter wrote:
I've never understood the concept of austerity as a remedy for an ailing economy; consumers are the lifeblood of any economy and to systematically limit their spending power is to systematically inhibit growth.
The Fed's decision to delay quantitative easement and to artificially prolong all-time low interest rates is the reason the United States economy continues to grow and continues to rebound from nearly a decade of cavalier spending and inadequate oversight culminating in a global financial crisis.
Austerity is an obvious solution to debt and perhaps the only true path toward solvency, but to embark on such a path prior to achieving economic stability is a recipe for economic disenfranchisement, for degradation of livelihood and for the resentment which festers and evolves into radicalism. Actually production is the lifeblood of an economy. After all, if there is no production there is no consumption. I don't want to de-rail the thread too much though, except that your analysis is laughably wrong. Keynes ghost still haunts us. /shiver Also, did you read your second paragraph and not note the disconnect? Cavalier spending? That's what negative interest rates and QE (printing / creating mass amounts of fiduciary media/currency) encourage, and was the reason for the situation we got ourselves into. I don't think you bothered to check Greenspans interest rates from 98' to 07' did you? Funny your analysis. Europe is living in a fantasy where the idea that you can have massive Social Welfare systems along with open-door policies, coupled with the idea that you can pay for this through financial manipulation (fiat credit) & have 'economic stability' is about as absurd as a politician promising 45$ minimum wage as the solution to poverty. It's like no one learned anything from Cantillon and the Mississippi Company. Don't worry, reality always wins in the end no matter how delusional you may believe something (Keynesianism). Massive social welfare systems are quite literally the target of these austerity measures, with crippling effect on the so-called European "welfare states." To suggest the EU is operating in contrast to this notion, and actually seeking to perpetuate social spending, is beyond my comprehension. There are several straw men I won't entertain, including an invitation to a theoretical debate regarding the chicken and the egg, but I can assure you low interest rates were not the cause of the housing market crash. Cavalier spending by low-income individuals was a direct result of inadequate oversight (note the connect) of the mortgage industry regarding sub-prime loans and the repayment ability of low-income borrowers. These loans were then sold to MBS's under false pretenses, triggering an economic crisis in which low-income borrowers were stuck with mortgages they could not repay and our nation's largest financial institutions were stuck with investments that could neither be sold nor recovered. ...you are talking to a guy who wants to bring back the gold standard and thinks the Federal Reserve is the thing that is keeping American entrepreneurship from generating 10% growth like it did before America had central banking. Meanwhile in Russia, opposition figures are being placed either under arrest or executed in the middle of Moscow... Keynes is proven wrong more and more everyday. But you and Krugman keep holding onto the dream... Yep, that hyper inflationary wave is swallowing America. Give it time my friend...give it time. send me all your worthless fiat dollars. Ill recycle for you free of charge.
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On March 01 2015 10:43 hannahbelle wrote:Show nested quote +On March 01 2015 06:30 Taguchi wrote:
OK hannahbelle, we shouldn't believe statistics either since they don't suit you.
So what's the count now? Ignore official statistics, ignore markets, ignore direct comparisons with other regions of the world that did go for your prescribed policies and are currently doing far worse, ignore failed predictions made by the guy who presided over the worst crisis since 1929 as head of the FED and actually endorses your view...
Once again, reality calls, ignore it at your peril. What statistics? You haven't offered any to back your view up. I offered unemployment, wage growth, and bank lending.
...none of which support your hyperinflation fantasies.
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kwizach just wait, it is right around the corner, all my buy-gold-now-newsletters are certain in that!!!!
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On March 01 2015 08:47 cLutZ wrote:
No European country really embraced austerity though... The burden of government is as high as ever. They just hemmed and hawed a lot about tiny cuts and raised taxes.
No austerity ? Really ?
+ Show Spoiler +
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On March 01 2015 05:37 Taguchi wrote:Show nested quote +On March 01 2015 03:04 hannahbelle wrote:On March 01 2015 01:01 Toadesstern wrote:On March 01 2015 00:43 kwizach wrote:On February 28 2015 15:54 hannahbelle wrote:On February 28 2015 15:27 Sub40APM wrote:On February 28 2015 11:42 hannahbelle wrote:On February 28 2015 05:11 Sub40APM wrote:On February 27 2015 23:23 always_winter wrote:On February 27 2015 20:01 Wegandi wrote:
[quote]
Actually production is the lifeblood of an economy. After all, if there is no production there is no consumption. I don't want to de-rail the thread too much though, except that your analysis is laughably wrong. Keynes ghost still haunts us. /shiver
Also, did you read your second paragraph and not note the disconnect? Cavalier spending? That's what negative interest rates and QE (printing / creating mass amounts of fiduciary media/currency) encourage, and was the reason for the situation we got ourselves into. I don't think you bothered to check Greenspans interest rates from 98' to 07' did you? Funny your analysis.
Europe is living in a fantasy where the idea that you can have massive Social Welfare systems along with open-door policies, coupled with the idea that you can pay for this through financial manipulation (fiat credit) & have 'economic stability' is about as absurd as a politician promising 45$ minimum wage as the solution to poverty. It's like no one learned anything from Cantillon and the Mississippi Company. Don't worry, reality always wins in the end no matter how delusional you may believe something (Keynesianism).
Massive social welfare systems are quite literally the target of these austerity measures, with crippling effect on the so-called European "welfare states." To suggest the EU is operating in contrast to this notion, and actually seeking to perpetuate social spending, is beyond my comprehension. There are several straw men I won't entertain, including an invitation to a theoretical debate regarding the chicken and the egg, but I can assure you low interest rates were not the cause of the housing market crash. Cavalier spending by low-income individuals was a direct result of inadequate oversight (note the connect) of the mortgage industry regarding sub-prime loans and the repayment ability of low-income borrowers. These loans were then sold to MBS's under false pretenses, triggering an economic crisis in which low-income borrowers were stuck with mortgages they could not repay and our nation's largest financial institutions were stuck with investments that could neither be sold nor recovered. ...you are talking to a guy who wants to bring back the gold standard and thinks the Federal Reserve is the thing that is keeping American entrepreneurship from generating 10% growth like it did before America had central banking. Meanwhile in Russia, opposition figures are being placed either under arrest or executed in the middle of Moscow... Keynes is proven wrong more and more everyday. But you and Krugman keep holding onto the dream... Yep, that hyper inflationary wave is swallowing America. Give it time my friend...give it time. How is "give it time" supposed to be an argument? Either the "inflationary wave" happens with the rounds of QE or it doesn't. We've seen it didn't, and it's been explained pretty well why it didn't, including by Krugman. Saying "give it time" is meaningless. Did not happen? Not enough time given yet! Did already happen? Told ya! I'm sorry. Do the effects of economic policy happen overnight where you live? Alan Greenspan, 2010.5 years later, USA didn't go for austerity policies and is now on the upswing. Europe did go for austerity policies and is in the midst of a deflationary spiral (ironically, to counter this they're now embracing monetary expansion but since everyone else is doing the same thing it likely won't be as impactful as the American one), political upheaval (sooo many fringe parties gaining traction, both from the left and (much more unfortunately) the nationalist right of the political spectrum) along with widespread misery for a whole lot of people. Clearly reality is wrong about what's been happening, it should be taught a lesson.
If you purely look at GDP, sure, the US is on the upswing. Realistically though, wages have not gone up in a very long time for anyone but the top-30 per cent of the population (which probably corresponds with middle management and up). So basically, a vast majority of the population is not profiting from the "upswing", and barely notices it at all.
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maartenq you're mixing two completly different things. Jobs are being created and growth is good in the US : that is what you can expect from a good counter cyclical policy. Now wage are not going up, but as we've seen with the exemple of Germany in europe, wage are not determined by economical matters only : they're determined by political and social realities first and foremost.
Wage are not going up because the richest are taking a huge part of the wealth created : their revenu are going up, at the expense of the rest of the population. To say it in another way, wage are not going up in the US because the US has a preference for inequalities and view those inequalities as justified.
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On March 01 2015 20:38 maartendq wrote:Show nested quote +On March 01 2015 05:37 Taguchi wrote:On March 01 2015 03:04 hannahbelle wrote:On March 01 2015 01:01 Toadesstern wrote:On March 01 2015 00:43 kwizach wrote:On February 28 2015 15:54 hannahbelle wrote:On February 28 2015 15:27 Sub40APM wrote:On February 28 2015 11:42 hannahbelle wrote:On February 28 2015 05:11 Sub40APM wrote:On February 27 2015 23:23 always_winter wrote:
[quote]
Massive social welfare systems are quite literally the target of these austerity measures, with crippling effect on the so-called European "welfare states." To suggest the EU is operating in contrast to this notion, and actually seeking to perpetuate social spending, is beyond my comprehension.
There are several straw men I won't entertain, including an invitation to a theoretical debate regarding the chicken and the egg, but I can assure you low interest rates were not the cause of the housing market crash. Cavalier spending by low-income individuals was a direct result of inadequate oversight (note the connect) of the mortgage industry regarding sub-prime loans and the repayment ability of low-income borrowers. These loans were then sold to MBS's under false pretenses, triggering an economic crisis in which low-income borrowers were stuck with mortgages they could not repay and our nation's largest financial institutions were stuck with investments that could neither be sold nor recovered.
...you are talking to a guy who wants to bring back the gold standard and thinks the Federal Reserve is the thing that is keeping American entrepreneurship from generating 10% growth like it did before America had central banking. Meanwhile in Russia, opposition figures are being placed either under arrest or executed in the middle of Moscow... Keynes is proven wrong more and more everyday. But you and Krugman keep holding onto the dream... Yep, that hyper inflationary wave is swallowing America. Give it time my friend...give it time. How is "give it time" supposed to be an argument? Either the "inflationary wave" happens with the rounds of QE or it doesn't. We've seen it didn't, and it's been explained pretty well why it didn't, including by Krugman. Saying "give it time" is meaningless. Did not happen? Not enough time given yet! Did already happen? Told ya! I'm sorry. Do the effects of economic policy happen overnight where you live? Alan Greenspan, 2010.5 years later, USA didn't go for austerity policies and is now on the upswing. Europe did go for austerity policies and is in the midst of a deflationary spiral (ironically, to counter this they're now embracing monetary expansion but since everyone else is doing the same thing it likely won't be as impactful as the American one), political upheaval (sooo many fringe parties gaining traction, both from the left and (much more unfortunately) the nationalist right of the political spectrum) along with widespread misery for a whole lot of people. Clearly reality is wrong about what's been happening, it should be taught a lesson. If you purely look at GDP, sure, the US is on the upswing. Realistically though, wages have not gone up in a very long time for anyone but the top-30 per cent of the population (which probably corresponds with middle management and up). So basically, a vast majority of the population is not profiting from the "upswing", and barely notices it at all.
Never implied otherwise, it is a horrible world we live in. Making it horribler isn't a solution, however, which is all that austerity has done for Europe so far.
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On March 01 2015 23:24 Taguchi wrote:Show nested quote +On March 01 2015 20:38 maartendq wrote:On March 01 2015 05:37 Taguchi wrote:On March 01 2015 03:04 hannahbelle wrote:On March 01 2015 01:01 Toadesstern wrote:On March 01 2015 00:43 kwizach wrote:On February 28 2015 15:54 hannahbelle wrote:On February 28 2015 15:27 Sub40APM wrote:On February 28 2015 11:42 hannahbelle wrote:On February 28 2015 05:11 Sub40APM wrote:
[quote]...you are talking to a guy who wants to bring back the gold standard and thinks the Federal Reserve is the thing that is keeping American entrepreneurship from generating 10% growth like it did before America had central banking.
Meanwhile in Russia, opposition figures are being placed either under arrest or executed in the middle of Moscow... Keynes is proven wrong more and more everyday. But you and Krugman keep holding onto the dream... Yep, that hyper inflationary wave is swallowing America. Give it time my friend...give it time. How is "give it time" supposed to be an argument? Either the "inflationary wave" happens with the rounds of QE or it doesn't. We've seen it didn't, and it's been explained pretty well why it didn't, including by Krugman. Saying "give it time" is meaningless. Did not happen? Not enough time given yet! Did already happen? Told ya! I'm sorry. Do the effects of economic policy happen overnight where you live? Alan Greenspan, 2010.5 years later, USA didn't go for austerity policies and is now on the upswing. Europe did go for austerity policies and is in the midst of a deflationary spiral (ironically, to counter this they're now embracing monetary expansion but since everyone else is doing the same thing it likely won't be as impactful as the American one), political upheaval (sooo many fringe parties gaining traction, both from the left and (much more unfortunately) the nationalist right of the political spectrum) along with widespread misery for a whole lot of people. Clearly reality is wrong about what's been happening, it should be taught a lesson. If you purely look at GDP, sure, the US is on the upswing. Realistically though, wages have not gone up in a very long time for anyone but the top-30 per cent of the population (which probably corresponds with middle management and up). So basically, a vast majority of the population is not profiting from the "upswing", and barely notices it at all. Never implied otherwise, it is a horrible world we live in. Making it horribler isn't a solution, however, which is all that austerity has done for Europe so far.
I definitely agree with that.
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On March 01 2015 20:38 maartendq wrote:Show nested quote +On March 01 2015 05:37 Taguchi wrote:On March 01 2015 03:04 hannahbelle wrote:On March 01 2015 01:01 Toadesstern wrote:On March 01 2015 00:43 kwizach wrote:On February 28 2015 15:54 hannahbelle wrote:On February 28 2015 15:27 Sub40APM wrote:On February 28 2015 11:42 hannahbelle wrote:On February 28 2015 05:11 Sub40APM wrote:On February 27 2015 23:23 always_winter wrote:
[quote]
Massive social welfare systems are quite literally the target of these austerity measures, with crippling effect on the so-called European "welfare states." To suggest the EU is operating in contrast to this notion, and actually seeking to perpetuate social spending, is beyond my comprehension.
There are several straw men I won't entertain, including an invitation to a theoretical debate regarding the chicken and the egg, but I can assure you low interest rates were not the cause of the housing market crash. Cavalier spending by low-income individuals was a direct result of inadequate oversight (note the connect) of the mortgage industry regarding sub-prime loans and the repayment ability of low-income borrowers. These loans were then sold to MBS's under false pretenses, triggering an economic crisis in which low-income borrowers were stuck with mortgages they could not repay and our nation's largest financial institutions were stuck with investments that could neither be sold nor recovered.
...you are talking to a guy who wants to bring back the gold standard and thinks the Federal Reserve is the thing that is keeping American entrepreneurship from generating 10% growth like it did before America had central banking. Meanwhile in Russia, opposition figures are being placed either under arrest or executed in the middle of Moscow... Keynes is proven wrong more and more everyday. But you and Krugman keep holding onto the dream... Yep, that hyper inflationary wave is swallowing America. Give it time my friend...give it time. How is "give it time" supposed to be an argument? Either the "inflationary wave" happens with the rounds of QE or it doesn't. We've seen it didn't, and it's been explained pretty well why it didn't, including by Krugman. Saying "give it time" is meaningless. Did not happen? Not enough time given yet! Did already happen? Told ya! I'm sorry. Do the effects of economic policy happen overnight where you live? Alan Greenspan, 2010.5 years later, USA didn't go for austerity policies and is now on the upswing. Europe did go for austerity policies and is in the midst of a deflationary spiral (ironically, to counter this they're now embracing monetary expansion but since everyone else is doing the same thing it likely won't be as impactful as the American one), political upheaval (sooo many fringe parties gaining traction, both from the left and (much more unfortunately) the nationalist right of the political spectrum) along with widespread misery for a whole lot of people. Clearly reality is wrong about what's been happening, it should be taught a lesson. If you purely look at GDP, sure, the US is on the upswing. Realistically though, wages have not gone up in a very long time for anyone but the top-30 per cent of the population (which probably corresponds with middle management and up). So basically, a vast majority of the population is not profiting from the "upswing", and barely notices it at all.
Gotta agree with WhiteDog in this one. The US is on the upswing. We're just not distributing the wealth in a way that your average European would like, given different priorities and cultural/political/economic beliefs.
Btw, the top 30% of the population you are claiming to benefit from the upswing comprises a lot more than middle management and up. The ratio of STEM, business and other professional degree holders vs liberal arts and no college is still depressingly low, even in the US. Top 30% of the population likely includes almost all management, doctors, lawyers, engineers, accountants, finance professionals as well as plenty of business analysts performing various functions.
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On March 07 2015 03:29 andrewlt wrote:Show nested quote +On March 01 2015 20:38 maartendq wrote:On March 01 2015 05:37 Taguchi wrote:On March 01 2015 03:04 hannahbelle wrote:On March 01 2015 01:01 Toadesstern wrote:On March 01 2015 00:43 kwizach wrote:On February 28 2015 15:54 hannahbelle wrote:On February 28 2015 15:27 Sub40APM wrote:On February 28 2015 11:42 hannahbelle wrote:On February 28 2015 05:11 Sub40APM wrote:
[quote]...you are talking to a guy who wants to bring back the gold standard and thinks the Federal Reserve is the thing that is keeping American entrepreneurship from generating 10% growth like it did before America had central banking.
Meanwhile in Russia, opposition figures are being placed either under arrest or executed in the middle of Moscow... Keynes is proven wrong more and more everyday. But you and Krugman keep holding onto the dream... Yep, that hyper inflationary wave is swallowing America. Give it time my friend...give it time. How is "give it time" supposed to be an argument? Either the "inflationary wave" happens with the rounds of QE or it doesn't. We've seen it didn't, and it's been explained pretty well why it didn't, including by Krugman. Saying "give it time" is meaningless. Did not happen? Not enough time given yet! Did already happen? Told ya! I'm sorry. Do the effects of economic policy happen overnight where you live? Alan Greenspan, 2010.5 years later, USA didn't go for austerity policies and is now on the upswing. Europe did go for austerity policies and is in the midst of a deflationary spiral (ironically, to counter this they're now embracing monetary expansion but since everyone else is doing the same thing it likely won't be as impactful as the American one), political upheaval (sooo many fringe parties gaining traction, both from the left and (much more unfortunately) the nationalist right of the political spectrum) along with widespread misery for a whole lot of people. Clearly reality is wrong about what's been happening, it should be taught a lesson. If you purely look at GDP, sure, the US is on the upswing. Realistically though, wages have not gone up in a very long time for anyone but the top-30 per cent of the population (which probably corresponds with middle management and up). So basically, a vast majority of the population is not profiting from the "upswing", and barely notices it at all. Gotta agree with WhiteDog in this one. The US is on the upswing. We're just not distributing the wealth in a way that your average European would like, given different priorities and cultural/political/economic beliefs. Btw, the top 30% of the population you are claiming to benefit from the upswing comprises a lot more than middle management and up. The ratio of STEM, business and other professional degree holders vs liberal arts and no college is still depressingly low, even in the US. Top 30% of the population likely includes almost all management, doctors, lawyers, engineers, accountants, finance professionals as well as plenty of business analysts performing various functions.
I'll admit that "upswing" for me is an ideologically charged term. GDP-wise, plenty of countries are on the upswing but as long as the broader population doesn't profit from it in terms of wage increases or decreasing unemployment, I don't find it anything to be proud about. The UK's upswing, for instance, is purely due to the performance of their financial sector, while a staggering amount of people (700,000) are on zero-hour contracts (http://www.theguardian.com/news/datablog/2015/feb/25/zero-hour-contracts-in-four-charts).
It is getting increasingly obvious that the rising tide is sinking a lot of boats instead of lifting them, or that at least some boats are being lifted while others are left wondering when the wave will pick them up too. As is becoming increasingly obvious in many parts of Europe, people are not planning to sit idly and watch a minority of people run off with all the profits while they are getting nothing at all, or at least a disproportionately tiny piece of the pie - or even see their salaries decrease.
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BERLIN, March 14 (Reuters) - If Greece were to leave the eurozone, Spain and Italy would also end up quitting the common currency bloc, Greek Defense Minister Panos Kammenos told German newspaper Bild in an interview to be published on Saturday.
"If Greece explodes, Spain and Italy will be next and then at some point, Germany. We therefore need to find a way within the eurozone, but this way cannot be that the Greeks keep on having to pay," he said, according to an advance extract of the broad-ranging interview.
He also said Greece did not need a third bailout but rather "a haircut like the one Germany also got in 1953 at the London debt conference."
Source
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What do you guys think.. will the euro keep losing value to the US dollar ?
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On March 14 2015 12:31 {CC}StealthBlue wrote:Show nested quote +BERLIN, March 14 (Reuters) - If Greece were to leave the eurozone, Spain and Italy would also end up quitting the common currency bloc, Greek Defense Minister Panos Kammenos told German newspaper Bild in an interview to be published on Saturday.
"If Greece explodes, Spain and Italy will be next and then at some point, Germany. We therefore need to find a way within the eurozone, but this way cannot be that the Greeks keep on having to pay," he said, according to an advance extract of the broad-ranging interview.
He also said Greece did not need a third bailout but rather "a haircut like the one Germany also got in 1953 at the London debt conference." Source
Just to bring a few points to everybody's mind about Kammenos, the head of the extremely nationalistic right wing party in the Syriza coalition. He is the guy who:
-within a few days of being sworn into office provoked a military incident with Turkey
-threatened the rest of Europe to "flood it with fugitives" in an uncontrolled manner (he literally said islamic terrorists would be amongst them)
-repeatedly claimed Jews in Greece weren't paying taxes
I won't even list all the spurs against Germany he made, it's just not worth it - he is a populist par excellence. I doubt anything he said in that interview is of substance or worth getting worked up over. It would be good if overall the debate would be held in a more rational and less populistic manner.
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On March 14 2015 19:22 ImFromPortugal wrote:
What do you guys think.. will the euro keep losing value to the US dollar ?
I think so yeah. Although I think we're bottoming out since the European economy is starting to grow again bit by bit.
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On March 14 2015 19:22 ImFromPortugal wrote:
What do you guys think.. will the euro keep losing value to the US dollar ?
It's an agreement between the ECB and the Federal Reserve. The euro will be at equal parity, 1 for 1, with the dollars, for some time, because the Fed doesn't want the european area to crash into crisis, draging the entire world with it.
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EPT![[image loading]](http://graphics.thomsonreuters.com/RNGS/2011/JUN/GREECE_BH.jpg)
![[image loading]](http://40.media.tumblr.com/tumblr_m3ptidKCwV1qm81zso1_500.jpg)
