And of course all the suffering because of a Germany that abuses a weak Euro. You forgot to mention that, something you keep on repeating day in day out.
I keep repeating that "day in and day out"? Can you link to the last 7 days of posts made by me that say Germany abuses a weak Euro and forces other nations to suffer? 5 Days?
Bernanke Admits To Congress: We Are Printing Money, Just 'Not Literally' Yeah, Ben. No one actually thought you were out there on the presses. Semantics are a Central Banker's best friend.
Ah, so you don't have the links where every day I've been saying this. Do you have a link somewhere that I said Germans are responsible for the suffering of Greeks? How about one where I said all of the suffering in Greece is because Germans abuse the weak Euro? Surely, if I supposedly said this 20 times, you can show a few instances of it, right? Misleading hyperbole noted.
Thank you Tao. It is very nice to see posted in these forums an analysis with correct facts and so well reasoned. One of several important points made is that the small, incremental adjustments allowed in the European exchange mechanism in the interim between the Maastricht and appearance of the euro, adjustments which helped maintain competitiveness, were no longer possible once a common currency had been adopted. (see: "Monetary union blocks that path.) It is undoubtedly true that "the loss of competitiveness is masked by the accumulation of debt." If that debt, however, is accumulated from investment aimed at increasing competitiveness, or in economic stimulus to end a recession and rescue an economy from "debt trauma," then it is good debt. If, on the other hand, as was the case in Greece, it is simply acquired to replace revenue lost to non-competitiveness and recession it is a stop-gap measure, but not an investment, and not good debt. This is the reason why, from the Keynesian point of view, the eurobond is so very much needed. The eurobond would greatly facilitate ECB operations and the raising of money at a low rate for investment in eurozone countries currently in recession . The author correctly points out that austerity measures, e.g., lowered wages and pensions, are equivalent to internal devaluation. This is not, however, a helpful kind of devaluation. It will not boost competitiveness. It will prolong recession. It will make matters worse, not better.
present piezoe with a question that requires a factual response and he is nowhere to be heard. "what is the difference?" it is all a camouflage to hide his true beliefs that he a soft money communist. of course, in his mind communism never existed in the soviet union because it did not fit his narrowly defined definition. that is the way he can deny that his beliefs are communist. in this case he can then deny that governments are pursuing easy money inflationary policies.
One of the things I like best about ET is that participants are free to express their views no matter how bizarre. There is virtually no moderator censoring. It's very refreshing.