tag:blogger.com,1999:blog-12897315.post2180323923188316541..comments2024-03-28T09:54:55.115-05:00Comments on Dad29: Eyes on Europe, Part 201: The LessonDad29http://www.blogger.com/profile/08554276286736923821noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-12897315.post-85536601845092990692011-11-21T17:18:45.757-06:002011-11-21T17:18:45.757-06:00Oh, yah, and by the way, paying Greek gummint work...Oh, yah, and by the way, paying Greek gummint workers not to work is also a political decision.<br /><br />The story on Italy will be the same.<br /><br />But on Italy there's more: no children. They're in the same spot as Japan: there will be no country by 2050 or so.<br /><br />So at least for the Italians, they can say 'who cares?' and they'll be right.Dad29https://www.blogger.com/profile/08554276286736923821noreply@blogger.comtag:blogger.com,1999:blog-12897315.post-47049280445427228922011-11-21T15:56:25.673-06:002011-11-21T15:56:25.673-06:00Sure they're political decisions.
Allowing Gr...Sure they're political decisions.<br /><br />Allowing Greece, Italy, Spain, etc. to openly fudge convergence criteria, primarily designed and enforced by the Germans in order to expedite admission of periphery nations into the EMU, was also a "political" decision. <br /><br />Now Germans are complaining because this decision blew up in their faces. <br /><br />Is Europe "unified" or not? It's up to them. Short term loan guarantees aren't going to do anything. Either take a haircut and secure southern Europe's sovereign debt or work toward an orderly withdrawl from the EMU and let these economically weaker nations out of a monetary union that's slowly drowning them.J. Struppnoreply@blogger.comtag:blogger.com,1999:blog-12897315.post-80943263912313787872011-11-21T14:49:21.919-06:002011-11-21T14:49:21.919-06:00Strupp, the Greeks made a political decision to jo...Strupp, the Greeks made a political decision to join the ECM.<br /><br />Also: you state that the Germans cannot 'politically' rescue....<br /><br />Those ARE "political" decisions, Strupp....Dad29https://www.blogger.com/profile/08554276286736923821noreply@blogger.comtag:blogger.com,1999:blog-12897315.post-31178643012896661472011-11-21T13:07:07.418-06:002011-11-21T13:07:07.418-06:00No.
Greek (or Italian, Spanish, Portuguese, Fre...No. <br /><br />Greek (or Italian, Spanish, Portuguese, French etc.) bonds have NOT suddenly become toxic because of decades of political decisions. This is wrong. <br /><br />These bonds have suddenly become toxic because:<br /><br />1. These nations are unable to use currency devaluation as a necessary adjustment to combat collapsing GDP and high unemployment and tax revenues, making default the only viable option. <br /><br />2. The Germans are politically incapable of backstopping the periphery nations' sovereign debt crisis even though they signed on to European unification years ago and are required to do so.<br /><br />There is no "contagion" in Europe without both of these elements. Europe wants to be half pregnant. They either issue some sort of Euro-bond (therefor backstopping all Eurozone member sovereign debt) or they dissolve. <br /><br />It's that simple.J. Struppnoreply@blogger.com