Dept and Unemployment in Europe Too
The following is taken partially from an op-ed comment by Bill Fethon in the Financial Timess. 12/2/11
What is going on in Europe is similar to the situation in the US. and it all relates to the jobs problem and trade policy.
The bard's favorite jerk, Polonious said it:
Niether borrower or lender be
for lost loan oft looses both irself and friend
and borrowing dulleth the edge of husbandry
So it is understandable that the Germans would want more control if they are going to be accountable for other's debts. But they already are responsible, in a way, the same way that US banks are partly responsible for all the forclosurs.
They said go on, borrow the money. Don't worry, we know you can pay it back. That's what they said, in one way or another, and it is what Germany said to the rest of Europe.
What happened though was that people lost their jobs. And guess what. The same people. more or less, who loaned them the money were the ones who sent the jjobs to China ect. Connect the dots for yourself. The relationship between creditor and debtor is not as one sided as the powers that be want us to think. It's why there is so much anger out there. Not to mention the people on the streets.
Now they, those same people, want the debtors to pay them back with auterity programs. Like, I want you to pay me back fully and, by the way, I'm taking your job. Again, not to mention they won't be able to buy Germany's stuff if they have nothing to spend.
This is where Merkle might get into real trouble. People might say nix. We do not want to spend our lives living in bondage to satisfy some biblical concept of the nature of debt.
Angela was obviously a beautifull woman not long ago, and she still might be on the inside.. But no amout of cosmetic surgery can bring it back. Her best bet is to have children, beautifull daughters, But fot that she needs to get you know whated. Germany needs to. Re-set the clock. The result willbe a new generation, a new Europe.
So maybe the Germans will wake up and see that they can not get paid back this way, thrugh austerity. You can't get money out of a turnip Only growth can do it. They must loosen up. It is time to monetize. Right now But they proabably know that, and all this is just a show for politics. After all, the Germans have been smart enough to have a trade policy that portects job for its peple.
Also, it seems it was right after they told the private bond holders they would take a hit that bond prices zoomed up. Of course. so the wuestion is, do bond holders want to lose half their equity or get paid back with printed money.
The answer through history has always been the same. But it is not the anwer, not the long term answer. The real soluton there, in Europe, is the same as it is here in the US. It is a sensible, pragmatic, trade policy that works for the people, and not just for the few who can take jobs to China etc. and sell back into the US. If you're looking for villans, there they are. Them and the croked polititions who let this happen.