Hey, it’s for real, policy or no policy. Face it.
Does this mean that Austrian Economics is not working in practice, and that Keynsian Economics might be needed?
America will pull further away. The growth gap between the US and EMU is 2.6pc this year, the highest since the 1990s. Citigroup said it will widen to 3.4pc in 2014 and continue at extreme levels through the decade. This will have dramatic compound effects over time. Such is the fruit of Europe’s "policy choices".
At least we're doing better than the Europeans.
So they’re finally calling it a depression? Interesting. So good to know Obama is following Europe’s example. We’ll have our own depression in no time. Yay.
Wait until the countries actually cave and give in to what the EU is demanding of them. Suddenly, pow! no more recession.
He claims that Europe is practicing “austerity,” yet budgets are not shrinking.
Instead, the “rate of growth” of budgets has been cut, sometimes to zero.
He claims that countries are not borrowing enough money, yet 5 Western Europe countries have borrowed so much they risk default.
He claims interest rates are too high, yet Germany, Holland, and Austria have rates close to the USA benchmark.
Only the countries that might default have seriously high rates, which is what you would expect as an investor.
He claims that a strong Euro is destroying Southern Europe, but not ONE country has even threatened to leave the Euro.
Finally, Ambrose has totally misled readers about the original conception of the European Monetary Union that was approved by voters.
They voted for a common currency that central bankers would keep within tight limits. They voted for reasonably free trade, for reasonably free movement of labor within the Euro Zone, and for reasonable government spending by all members of the Euro Zone.
They did NOT vote for a Central Bank that would guarantee or purchase sovereign debt by printing money.
Germany did NOT vote to bail out debtor nations with German Euros.
Europe did NOT vote to allow national budgets to be written by unelected Euro bureaucrats.
The proper course in Europe is to keep the Euro strong.
NO country will voluntarily leave the Euro if that happens.
If some countries default, so what?
A few of the banks that were forced to buy these crappy bonds will collapse, but most banks will just be reduced in size and value and will struggle through.
The defaulted countries will be back in the bond market the next day, selling at much shorter maturities and much higher interest rates.
Tough.
They'll do it, and not ONE of them will leave the Euro.
Stamp out the UN. Make the leave your country. Stop funding them as evil terrorists.
LOL! Wow, the article doesn't even attempt objectivity.
I lived in Europe for 4 years. Let me tell you, there is one HELUVA difference between the work ethics of northern vs. southern Europe.
You visit Greece, and every street has a bar or coffee shop with young, middle aged, and old men sitting around arguing about.......well.....everything.
You go into Germany or Norway, and even the elderly women are working.
AEP fans on Freeper. Unusual. Detractors, too. Means some freepers like to read stuff. Ping for later.