Greferendum

[camberiu]

Yeah but you could say the same about the USA, Japan, Canada, etc.

That is right. We are sailing through uncharted waters right now. We have never seen this much debt and this widespread.

But it still does not change the fact that splitting the Eurozone solves nothing.

 

[Joe]

Where's Ed Rooney? We need to get the Neo-Keynesian position ...

so as to know what NOT to do....

 

[Bajo_cero2]

As soon as they can print money, they can solve it.

 

[Rich One]

For a long time it has been mentioned that Europe works at two different speeds . The Mediterranean Underbelly at slow gear and the the rest at high gear. The answer would be to give a handicap to the Underbelly paying subsidies for their exports. a transfer of value.

The Long Term Solution ! Create a Martin Luther Fund To promote Protestant Values :wub: in the Underbelly

 

[Joe]

As soon as they can print money, they can solve it.

Wow I asked for the Neo-Keynesian position and poof it appears!

 

[camberiu]

As soon as they can print money, they can solve it.

Yes, that is how the Wiemar Republic solved its debt problem back in the 1920s, printing money. Worked like a charm.

 

[camberiu]

For a long time it has been mentioned that Europe works at two different speeds . The Mediterranean Underbelly at slow gear and the the rest at high gear. The answer would be to give a handicap to the Underbelly paying subsidies for their exports. a transfer of value.

The Long Term Solution ! Create a Martin Luther Fund To promote Protestant Values :wub: in the Underbelly

That is the common view of the situation, but I particularly find it somehow simplistic and biased. The reality is that there was a lot of pressure from the corporate interest on norther European countries to have the club med nations added to the Euro. Their newly high value currency and vast borrowing power meant that Greeks, Portuguese and irish were all of a sudden more inclined to buy Mercedes Benz, Ikea Furniture and spend vacation in the Swiss Alps.
It was a very clever way for northern European corporations to sell stuff to the south at credit, but have the northern tax payer assume the risk. The Euro was one of the largest corporate welfare programs in modern history.

 

[el_expatriado]

I am sorry, but I fail to see how that would solve anything. The combined $1 trillion+ euros of debt shared by the PIIGS would not disappear overnight after this division. And now the countries in question would have to pay back their already unplayable debts with devaluated currencies. Talk about an Argentina like scenario.

The way I see it, re-arranging the chairs does nothing. The only solution I can picture is default.

The PIIGS all need to default and renegotiate. If Europe followed my plan ideally they'd be borrowing in their own devalued currency and not the euro.

 

[ajoknoblauch]

Yes, that is how the Weimar Republic solved its debt problem back in the 1920s, printing money. Worked like a charm.

I expect there may be some intermediate policy options.

 

[Rich One]

That is the common view of the situation, but I particularly find it somehow simplistic and biased. The reality is that there was a lot of pressure from the corporate interest on norther European countries to have the club med nations added to the Euro. Their newly high value currency and vast borrowing power meant that Greeks, Portuguese and irish were all of a sudden more inclined to buy Mercedes Benz, Ikea Furniture and spend vacation in the Swiss Alps.
It was a very clever way for northern European corporations to sell stuff to the south at credit, but have the northern tax payer assume the risk. The Euro was one of the largest corporate welfare programs in modern history.

Thanks for your interesting viewpoint, that mustn't be considered. biased and/or simplistic

[font=Miller Display Roman']Poor Southern Europe Under[/font][font=Miller Display Roman']belly: Why it will never catch up to the North...?[/font]
Should establish a Proposicion 125, Fund. Apply retenciones to all Northern European Exports to assist the Underbelly Countries. on a regular basis . Instead of every so often throwing a 110 billion,lifesaver. Similar to the German Reunification benefits for ex -East Germany.Which will never catch up to West Germany?

http://fortune.com/2...t-west-economy/