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

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

  1. nitro

    nitro

    More buggy patches that all it does is delay the inevitable. 50% of the debt needs to be forgiven, and stretching out a loan for the rest over 30 years.

    That's what Germany got for WWI & WWII

    Euro zone releases 2.8 billion euro loan tranche to Greece


    [​IMG]
    A street vendor displays Greek national flags for sale in front of the Bank of Greece headquarters during a student parade marking the ''Ohi'' (No) day, the country's rejection on Italy's ultimatum to surrender as the World War II flared up, in Athens, Greece, October 28,... REUTERS/Alkis Konstantinidis

    The euro zone bailout fund ESM released on Tuesday a 2.8 billion euro loan tranche to Greece, following a commitment made by euro zone finance ministers earlier this month which was conditional on an assessment of the clearance of net arrears by Greece.

    "The government has completed key milestones in the area of pension reform, bank governance, the energy sector, and revenue collection," ESM Managing Director Klaus Regling said.

    "It has also taken further steps in making the new privatization and investment fund operational. If the government continues to implement the reforms agreed in the ESM program, growth of the Greek economy could accelerate next year and the government may be able to start issuing bonds again next year," he said.

    http://www.reuters.com/article/us-eurozone-greece-idUSKCN12P13H
     
    Last edited: Oct 25, 2016
    #131     Oct 25, 2016
  2. piezoe

    piezoe

    This is of course the great dilemma. You have a common currency but no common bond. It is as yet not a fully integrated monetary system, and this is why Soros said in Frankfurt that Germany must agree to the Euro bond or leave the EMU.
     
    #132     Oct 25, 2016
  3. nitro

    nitro

    That is basically what Stiglitz says in this book:

    The Euro: How a Common Currency Threatens the Future of Europe Hardcover – August 16, 2016
    by Joseph E. Stiglitz (Author)

     
    #133     Oct 25, 2016
  4. nitro

    nitro

    Exiting the EU is not the solution to the real problem. What is?

     
    #134     Nov 6, 2016
  5. piezoe

    piezoe

    Very interesting Nitro. Thanks for posting this interview with Richard Wolff.
     
    #135     Nov 7, 2016
  6. nitro

    nitro

    YW. I find the trio of Chomsky, Hedges, and Wolff to be the right trinity to understand the world we live in. Unfortunately, there isn't a black guy in there, or a Latino, or Asian, giving the discussion more breadth.

    But I expect that will change.
     
    #136     Nov 7, 2016
  7. nitro

    nitro

    I recommend this one as well. In fact, just watch all CH and RW videos. This one is interesting because it adds the voice of a black intellectual.

    It made me go back and re-read Payne's Common Sense.

     
    #137     Nov 7, 2016
  8. nitro

    nitro

    "A spectre is haunting Europe."...
     
    #138     Nov 7, 2016
  9. Nice analysis, totally agree with the post. But I think the implementation is highly unlikely to happen.
     
    #139     Nov 8, 2016