In order for the EU to survive, it has to implement Fiscal Transfers

Discussion in 'Economics' started by nitro, Jul 7, 2015.

  1. gwb-trading

    gwb-trading

    #121     Jul 26, 2015
  2. nitro

    nitro

    :eek: "Some members of Greece's leftist government wanted to raid central bank reserves and hack taxpayer accounts to prepare a return to the drachma, according to reports on Sunday that highlighted the chaos in the ruling Syriza party.

    It is not clear how seriously the plans, attributed to former Energy Minister Panagiotis Lafazanis and former Finance Minister Yanis Varoufakis, were considered by the government and both ministers were sacked earlier this month. However the reports have been seized on by opposition parties who have demanded an explanation..."

    http://www.cnbc.com/2015/07/26/greece-may-be-prepping-covert-plan-to-bring-back-drachma-reports.html
     
    #122     Jul 26, 2015
  3. nitro

    nitro

    Who Really Benefits From Bailouts?

    4 JUL 31, 2015 10:53 AM EDT
    By Barry Ritholtz

    I always find it amusing whenever someone expresses surprise that the financial bailouts for Greece haven't benefitted Greek citizens. “Bailout Money Goes to Greece, Only to Flow Out Again” in the New York Times is just the latest example. “The cash exodus is a small piece of a bigger puzzle over why — despite two major international bailouts — the Greek economy is in worse shape and more deeply in debt.”

    Unfortunately, this is a feature of bailout, not a bug.

    A plethora of financial rescues during the past decades has proven quite convincingly that this isn't an aberration. Follow the money instead of following the headlines. That’s how you learn who profits from a bailout...

    http://www.bloombergview.com/articles/2015-07-31/money-tells-us-who-benefits-from-bailouts
     
    #123     Jul 31, 2015
  4. fhl

    fhl


    If somebody pays your debts for you, you didn't get any benefit?

    I've always thought ritholz was an idiot.
     
    #124     Jul 31, 2015
  5. nitro

    nitro

    German lawmakers debate Greek bailout, Merkel faces rebellion

    By Paul Carrel and Tina Bellon

    BERLIN (Reuters) - German lawmakers broke off their holidays on Tuesday to debate Greece's third bailout plan before approving it, though Chancellor Angela Merkel faces a rebellion in a vote shaping up as her last chance to keep Athens in the euro zone.

    Up to a quarter of Merkel's conservatives could vote against the 86-billion-euro ($95 billion) package, sending the government a clear warning not to return to parliament again to ask for more aid....

    http://www.investing.com/news/econo...-greek-bailout,-merkel-faces-rebellion-356455
     
    #125     Aug 18, 2015
  6. nitro

    nitro

    #126     Aug 21, 2015
  7. nitro

    nitro

    #127     Sep 12, 2015
  8. nitro

    nitro

     
    #128     Oct 24, 2016
  9. fhl

    fhl

    The entire leftist argument on Greece is built on a giant falsehood. That is that Greece is undergoing 'austerity'. It's false because it does not add up.

    The argument goes something like this. Greece needs to have their own currency or they'll never be able to dig themselves out of this. They need a devaluation to bring down their relative wages so they can become competitive and fix their trade balance and grow.

    But according to this article:
    http://www.telegraph.co.uk/business/2016/10/24/the-eurozone-is-turning-into-a-poverty-machine/

    36% of the people in Greece are in danger of being in poverty, which is defined as 60% of the median income. In Greece the median income is 7500 euros/yr now.

    Can you see how something doesn't add up? The left claims they need to devalue the currency to be able to compete, which does nothing but lower their relative wages. But as pointed out, their wages now for median and below are dirt. If lowering their wages were the answer, they'd already be competitive. But they are not.
    Which means there is something else that is destroying their economy. A big gov't bureaucracy that is stifling their economy's productivity. They need to fix that. Or screw them if they don't want to. Let them starve.
     
    #129     Oct 25, 2016
  10. That's a great point, and you're 100% correct. I think what they're trying to do now is to make from the EU a holistic community, following the example of the U.S., where the states have a lot of freedom but they are still limited by the federal government.
     
    #130     Oct 25, 2016