Greferendum

[Joe]

The boom and busts that occurred before the Federal Reserve Act were severe but also short-lived. What we have seen with the US and other countries where the central banks resort to money printing to smooth-out economic cycles is that downturns are indeed less severe but last much, much longer.

Regarding Greece though the answer is to follow a path that has proved successful, i.e. Argentina's default early in the century. The 60% youth unemployment in Greece is sowing the seed of future destruction and needs to be reversed immediately.

Ideally Greece can default and follow rational economic policies - although that is a lot to ask for. Populist policies get you elected. Still default is the best solution.

 

[Matiasba]

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

It worked out well in Argentina 2002-2015

 

[ajoknoblauch]

It worked out well in Argentina 2002-2015

So far better than Weimar, but that's setting the bar pretty low. The final verdict is not yet in.

 

[camberiu]

Well, the US did too, it was called "the new deal" and see how did it worked out.

The great depression of 1929 had nothing to do with US government debt. I think you are making it up as you go.

 

[camberiu]

It worked out well in Argentina 2002-2015

Really? Argentina paid back its debts? The creditors got no haircuts at all?

It seems that you are making up as you go too.

 

[Matiasba]

So far better than Weimar, but that's setting the bar pretty low. The final verdict is not yet in.

Its gonna be better and better. There were several Latin americans economies, like Ecuador (a very complex case since its dollarized), Uruguay, or Argentina, that got out of the 2000s crises with keynesianism. In fact, there were ortodoxians measures by the IMF, World Bank, etc what pushed these countries into crisis. Just like Europe now, THEY ARE THE SAME POLITICAL ECONOMICAL ACTORS.

The exit from these crises in Latam were with Keynesianism, with these 'progres' governments that applied protectionism, emission, great social spending, among others, and that they did not lose one single presidential election (Venezuela, Ecuador, Uruguay, Brazil, Bolivia, Argentina)

 

[ajoknoblauch]

Its gonna be better and better. There were several Latin americans economies, like Ecuador (a very complex case since its dollarized), Uruguay, or Argentina, that got out of the 2000s crises with keynesianism. In fact, there were ortodoxians measures by the IMF, World Bank, etc what pushed these countries into crisis. Just like Europe now, THEY ARE THE SAME POLITICAL ECONOMICAL ACTORS.

The exit from these crises in Latam were with Keynesianism, with these 'progres' governments that applied protectionism, emission, great social spending, among others, and that they did not lose one single presidential election (Venezuela, Ecuador, Uruguay, Brazil, Bolivia, Argentina)

Winning elections is not the same as governing successfully and sustainably.

 

[Matiasba]

Really? Argentina paid back its debts? The creditors got no haircuts at all?
w
It seems that you are making up as you go too.

AFAIK, lots of great social plans, like AUH, exist just because we dont have to pay debt interests. And yes, in absolute terms the debt continued growing, but we owed like 150% of GDP and now close to 40%.

 

[Matiasba]

Winning elections is not the same as governing successfully and sustainably.

no, but it means something, its an indicator thaat things are on the right way

 

[ajoknoblauch]

no, but it means something, its an indicator thaat things are on the right way

https://en.wikipedia.org/wiki/German_federal_election,_March_1933