the euro should be left to die its death, but noooo, ze germans want to continue to plunder eastern europe like it’s 1941!
1 TRILLION dollar loan. (750 Billion Euros)
Proper fucked.
the euro should be left to die its death, but noooo, ze germans want to continue to plunder eastern europe like it’s 1941!
http://www.reuters.com/...dUSTRE6482ZL20100510
I’m on Germany’s side. Why the F would I want to give away money earned through sacrifice and sound policy to a bunch of entitled bums?
Sounds familiar doesn’t it California? Welfare? Unions?
1 TRILLION dollar loan. (750 Billion Euros)
Proper fucked.
there are varying reports about the size.
i think it depends on whether you include certain types of loan guarantees and/or central bank intervention (i.e. the ecb engaging in quantitative easing - which i think it is supposed to do, but i’m not 100% sure).
I’m on Germany’s side. Why the F would I want to give away money earned through sacrifice and sound policy to a bunch of entitled bums?
many german banks are holders of both a) greek government debt; b) greek private debt. if greece defaults and/or (leaves the eurozone + devalues the drachma), german banks will take a big hit and might need to be bailed out anyways.
plus, germany’s export “miracle” is actually not a miracle. germany has run massive current account surpluses over the last decade…
and most of it is because it was selling goods to eastern & southern european countries that took on huge amounts of private and public debt to buy those goods.
so really, the german government is trying to anchor that policy of eastern/southern dependency on germany.
i personally think it’s a stupid policy (because several eastern & southern european countries are so far beyond saving), that it’s time to admit the party that germany enjoyed for a decade is over, and that, really, this situation of germany exporting to countries that couldn’t afford it was unsustainable and a reckoning that can be put off but not avoided forever.
Funny how Americans slam the bailouts to help the Euro after so many more bailouts were given to help the U.S economy.
I wouldn’t underestimate the Euro.
Pretty sure MOST Americans did not suport the bailouts here at home. All of this is a game. We forgo short term pain to kick the can down the road.
There are too many structural imbalances with the Euro. Greece is proving that out at this very moment, unfortunately. It’s also hard to have a “national currency” for “Europe” when one of the major players in “Europe” (Great Britain) doesn’t play along, for one. For another, the northern European countries – where the real work and savings and investment mindset seems to reside – won’t tolerate forever the profligacy of the southern Europeans countries like Greece. Whether or not this propping up is going to prevent the general crash dive the currency may take if the rest of the PIIGS (Portugal, Italy, Ireland, Greece and Spain) finally act as they’re inevitably bound to act in terms of crashing their economies remains to be seen. This may be like throwing good money after bad.
Funny how Americans slam the bailouts to help the Euro after so many more bailouts were given to help the U.S economy.
I wouldn’t underestimate the Euro.
The EURO is finished.
All good points on the Euro however most people say the euro-zone government deficit ratio is too high but last year, that ratio was better than that of Japan and the U.S.
The Euro is not dead and the world needs it.
**The EURO is finished. **
A few months ago people were saying the $U.S was dead. Things change quickly but the Euro is definitely not dead.
Funny how Americans slam the bailouts to help the Euro after so many more bailouts were given to help the U.S economy.
Did the US get a bailout from the IMF? Maybe I’m not following how this all works but seems to me the US borrowed money from foreign investors and mostly from our own public funds. Also looks to me like there is a trillion dollars going into these failing countries from the IMF BECAUSE no one will borrow them money. Again I could be wrong but that is a pretty significant difference.
That being said it also means that the US is putting money “Into the cause”, money we don’t have…that we’ll have to borrow to put in. We’ll borrow against money that doesn’t exist but is merely “Projected” to exist in the future.
Call me crazy, but this just seems like robbing Peter to pay Paul.
~Matt
Did the US get a bailout from the IMF?
No, but that has nothing to do with my comment that the Euro is dead. Besides, a portion of the money is coming from the IMF with the majority coming from other countries.
That being said it also means that the US is putting money “Into the cause”, money we don’t have…
Are you sure about that because I haven’t heard this.
Anyway, I don’t think governments should bail anyone out but the OP was talking about how the Euro was dead and I was just drawing parallels to the situation in the U.S not too long ago.
No, but that has nothing to do with my comment that the Euro is dead. Besides, a portion of the money is coming from the IMF with the majority coming from other countries.
I guess I’m pointing out the larger issue of a country getting money from a country that has no money. It would be the same as a person that can’t pay their mortgage getting a “Loan” from someone who just lost their job and is only a couple months behind on their own mortgage payments.
The Euro may or may not be dead, the entire system however is not operating under realistic and or sustainable conditions.
**Are you sure about that because I haven’t heard this. **
I’m sure we have put money into the IMF in the past as well as are regular contributors. I’m not sure whether were putting in “Extra” for this payout or not but certainly we are in one way or another supporting it.
Anyway, I don’t think governments should bail anyone out but the OP was talking about how the Euro was dead and I was just drawing parallels to the situation in the U.S not too long ago.
And I agree but was pointing out the slight difference here. In the case of the US we borrowed money. In the case of the IMF it is more of a “Bailout”.
~Matt
All good points on the Euro however most people say the euro-zone government deficit ratio is too high but last year, that ratio was better than that of Japan and the U.S.
The Euro is not dead and the world needs it.
The Euro will not survive, because the European Welfare State model will not survive.
Too many people are getting something for nothing.
The deficit nations will adhere to the austerity measures.
So benefits are cut, wages are slashed, the VAT goes higher, private investment crumbles, unemployment goes higher, and these economies go into deep recession.
Deficits as a percent of GDP will likely be higher, even as cuts are made because the denomiator will be shrinking at a faster rate.
Again, this is the end of the welfare state and another example of the failure of socialism and progressive economic policy.
Are you sure about that because I haven’t heard this.
Heard over lunch that indeed the US is supplying some of the IMF money. ABC news I think. No idea how much.
~Matt
We are 20% of the IMF, so take $279B and do the math–about $55B USD,
.
I found it funny that one of the things that Greece was told by the EU was to privatize their HC. hmmmmmmmm
All this is doing is delaying the inevitable unless they make massive changes. I think once the pitchforks come out they will back down and the EU/US will have to move in again. Two years?
The EU is much futher along in their socialist experiment.
But like I stated above, this is the end of the Welfare State, whether the US realizes it or not.
Something for nothing is not a viable strategy.
The EU is much futher along in their socialist experiment.
But like I stated above, this is the end of the Welfare State, whether the US realizes it or not.
Something for nothing is not a viable strategy.
Why do you hate nothing
The United States is the largest contributor, accounting for about 25 percent of the fund.