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Spoken like a true economic remedial. Much of Europe's problems were not deficit spending. Ireland and Spain both ran a surplus prior to the crash - which by the way is global. Recession means contraction means job losses means lower revenue. By forcing other European nations to impose harsh spending cuts they are deepening the recession and reducing future options for growth. Bond investors are forcing policy which suits the German economy but this is massively short sighted for the euro zone (and Gemany give its huge trade surplus).
Stop trying to inject actual logic and knowledge into the thread.
Only the enormously stupid actually believe that Europe will remain a continent in peace. Given their history and tendency toward socialist/fascist extremism, money should always be placed on war over there.
Well, if their neighbors will stop demanding money from them, they will stop demanding austerity measures. The core of the problem is not Germany but the rest of Europe who love to spend other peoples money.
The people of Germany are tired of watching their money going out to others to see it wasted and the people of Greece and the like don't want the money to begin with because they don't like the austerity measures. Maybe they need to get together and end the madness and trash the EU and start over. AFter they lost the battle of trading for oil in euros in Iraq the writing was on the wall anyway. Time for em to count their losses and move on.
Not at all. Germany is contributing to the problem. It helps that they pursue these ludicrous austerity measures because it drives investors to safe have German bonds. The austerity that Germany demands is killing growth in the euro zone and driving countries further into recession/depression. We shall see what happens now that somebody with a more sensible economic approach has been elected in France (the UK has also rejected conservatives all across the country).
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Originally Posted by itsjustmeagain
Well, if their neighbors will stop demanding money from them, they will stop demanding austerity measures. The core of the problem is not Germany but the rest of Europe who love to spend other peoples money.
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Originally Posted by GregW
The problem with forcing austerity measures is they destroy Germany’s customer base preventing the profitable sale of the excess manufactured goods cranked out by their efficient industry. The resulting economic crash in Germany would be a real disaster. Germany's best bet is to continue to finance the rest of the Eurozone so they buy German products.
Germany has no reason for any kind of military action because they control the money, the transportation and the production of Europe. They lost the War but Won the Peace. They do not seem to know what to do with the victory.
Quote:
Originally Posted by TigerLily24
Stop trying to inject actual logic and knowledge into the thread.
We'll have none of that here.
You all bring up something that seems to otherwise go by the wayside. Germany pumped millions into its economy and social programs several years ago when the economy started tumbling--now, as the strongest economy in Europe (undoubtedly do to its massive stimulus plan), it's forcing other nations to enact austerity measures so it doesn't lose its place. Wild.
The Germans have always feared inflation, and they've done a lot to maintain control over the Euro--it's just a wee bit hypocritical to dump millions into your own economy, but prevent others from doing the same.
You all bring up something that seems to otherwise go by the wayside. Germany pumped millions into its economy and social programs several years ago when the economy started tumbling--now, as the strongest economy in Europe (undoubtedly do to its massive stimulus plan), it's forcing other nations to enact austerity measures so it doesn't lose its place. Wild.
The Germans have always feared inflation, and they've done a lot to maintain control over the Euro--it's just a wee bit hypocritical to dump millions into your own economy, but prevent others from doing the same.
The Germans pumped millions into their economy because they could and they didn't waste it all on private debt or welfare spending like the rest of Europe did.
If the PIGS can't refinance themselves in the private market and need Germany's help, it's their problem. The German taxpayer is not going to foot the bill for countries who are in trouble and have more generous welfare programs and lower retire ages than Germany.
How are you going to sell that to the German taxpayer?
Spoken like a true economic remedial. Much of Europe's problems were not deficit spending. Ireland and Spain both ran a surplus prior to the crash - which by the way is global. Recession means contraction means job losses means lower revenue. By forcing other European nations to impose harsh spending cuts they are deepening the recession and reducing future options for growth. Bond investors are forcing policy which suits the German economy but this is massively short sighted for the euro zone (and Gemany give its huge trade surplus).
Again, they can all refinance themselves on the global market if they want. However they cannot, so they depend on Germany. How are you going to sell to the German taxpayer they have to foot the bill for countries that have lower retirement ages and more generous welfare programs than Germany?
The PIGS simply have to take the medicine now. There is no way around it.
The Germans pumped millions into their economy because they could and they didn't waste it all on private debt or welfare spending like the rest of Europe did.
If the PIGS can't refinance themselves in the private market and need Germany's help, it's their problem. The German taxpayer is not going to foot the bill for countries who are in trouble and have more generous welfare programs and lower retire ages than Germany.
How are you going to sell that to the German taxpayer?
Germany, like the rest of the Eurozone, was facing economic crisis. Most other nations decided to do what the United States wants to do and cut spending. Germany did the opposite. Germany increased spending, put millions into social programs, and revitalized their economy.
Germany is on top, the rest of the Eurozone is struggling. The United States wants to follow the Austerity route, while "damn dirty liberals" here in the United States want to do what Germany did.
Germnay poassed their cuts and reform in the 90's;they do not wantthe rest liabilties which is why your unlike to see a real united euro zone;too mnay dependents to support.
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