This guy Soros earned his money the old-fashioned way: raping Britain.
With that as a credential, he presumes to lecture Europe (specifically, Angela Merkel) on economic affairs.
Soros joins Obama in pushing the "Spend Like Crazy" line. Schlaes suggests that "Spend Like Crazy", when tried before, had consequences which were dreadful.
The financier- philanthropist said last week that Germany is endangering the European Union by keeping wages down and pursuing a balanced national budget too aggressively. Germany’s parsimonious attitude, Soros suggests, may bring down the euro.
But Amity Schlaes, who knows a bit about history and economics, suggests that Soros is not quite as 'philantropic' has he seems.
It is Soros who is endangering the euro by advocating these spending and loosening policies. They are policies that may give Europe budget problems that render its currency vulnerable to attack by Soros-like traders. Perhaps, like Merkel, Soros is doing his endangering for understandable reasons.
And there is this little problem of 'consequences.'
...there is the German national memory of the 1920s hyperinflation. That resulted from the decision of a desperate Weimar Republic to inflate its way out of war debts. That hyperinflation so punished middle-class savings and so weakened the 1920s economy that the average German became more susceptible to maniacs like Adolf Hitler and the communists.
Well, well. Chaos all over again.
The Keynesian argument that the choice is binary, between spending and pain, is untrue. For one thing, deflation isn’t always painful -- in the 1920s, even as Germany agonized, the U.S. thrived during an American deflation. Budget tightening, especially in combination with competitive tax codes, may put all Europe on a growth path that renders its currency a true competitor for the role of global leader over the long run.
Or Europe could cave to Soros' ankle-biting and see what sort of 'historical figure' arises THIS time.
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