first of all, hello everybody. This is my first and hopefully not last posting.
A couple of months have passed since the peak of the Euro-crisis and we all have a clearer view on whats going on right now.
How do you think Europe is doing at the moment especially in comparision to the US, China, Japan etc.
It seems like the ECB is the only major central bank left that doesn’t want to play the weaken your currency game.
To me it seems that the current path we are on actually isn’t that bad. Unlike the US, the southern European countries really try to cut back public spending and pay down their debt. This seems to be a way much more favorable to us than what was happening before and is still happening in the US. Could it be that Europe learned a leasson?
Western Europe is by no means out of the woods on this issue. The austerity measures for the PIIGS countries have not gone into affect and the political fallout and protests have yet to begin. Wait now until the spring when the weather gets warm again. The start of the real crisis is just beginning in the US and this dollar crisis will affect everyone for some period. China will emerge out of this as the worlds super economic power, and the US will be donwsized to third world status. I think the Eastern European countries will be fine. For one they already live below standard, but more importantly they produce the products for the rest of Europe. That is where the job growth is. The Western European countries will suffer, especially the ones tied to the dollar and Euro, since they dont decide their own fate. I expect to see alot of violent protests in Europe over the next 5 years and eventually the euro to disappear.
Well, I didn’t really suggest Europe was out of the woods.
My statement was that the European way to adress the debt crisis is way better than the American. Europe is actually adopting austerit measure which is what Austrians would advise if they were being asked. America, on the other hand, tries to solve its problems by going deeper into debt. Europa apparently doesn’t want to follow America on the deficit-spending road (at least not to that extend anymore). And that is something we ought to encourage in my opinion.
That having been said doesn’t mean that everything is fine. It is just one little brick in the Keynesian wall starting to crumble.
As Peter Schiff said in his video blog yesterday. “The fact that they are protesting shows that they are doing something right.”
Not sure if anyone is doing any thing right at the moment.
The people are protesting due to that the govt bailed out the bankers, and now want the people to work harder in order to pay for the debt and bailouts. I support their protests in this matter…however.
The people wanted socialism and central banking and now they to deal with the failure of socialistic ideology, so I then dont support the protests.
In the end the system has to collapse and it will, The Austrian school says we must have a deep recession, so if austerity is implemented and then we have the crash, then socialists will blame austerity just like they do with the Great Depression.
The clear answer is no. They still are burning and or printing money as mad. So nothing has changed really. The cure will make the recovery more and more painful. And yes you can see superstition at work. The problem surely is too much money and too much credit, and the cure is yes stupid enough printing more money and making even more debt. And the looters are on the raise. (Definition of looters meant here: http://en.wikipedia.org/wiki/Atlas_Shrugged#Government_and_business) Be it in the US where the successfull companies are “marked” unfair and in Germany where one can read that the car makers in BW should produce less cars overall and especially more “green” cars. Which itself is an oxymoron. Just imaging, 2 years ago they spend a few billion on destroying older cars. We still have no clue at off the follow-up costs of this “action” And so the depressing answer is. “Europe” does not have learned anything.