American economist and Nobel Prize winner Paul Krugman has raised doubts that a rescue plan worth EUR 110bn for debt-stricken Greece will be effective.
Why not yesterday? Millions, especially in Germany, would celebrate that. Just do it...
(JohnC., 4 June 2010 22:53
If Greece went down so will Portugal and Spain.Then the euro and German banks will be in kingdom come.If that happens don't be surprised if you the Germans wearing their boots again.
What the emminent economist ommits saying is the euro is doomed. This fact had been obvious to all the euro critics from the very beginning. All the arguments against the possibility of a common currency for very disparate countries had been raised, but brushed away by overzealous EU bureaucrats.
They'll learn their monetary lesson the hard way in the coming years.
Unfortunately the current discussion about Greece, Spain and all the other PIIGS countries is very superficial.Greece is everywhere!
In fact, the whole western world and Japan are over indebted.You've likely read in the press about debt to GDP figures like 200 percent for Japan, 115 percent for Italy, 113 percent for Greece, 85 percent for the U.S., 76 percent for France, 73 percent for Germany, or 80 percent for the UK.
But these debt leaves out important obligations like pensions and social security. If you add these in, you get what economists call the implicit government debt.If you use the implicit government debt to GDP ratio, the picture is much bleaker.
Mr Krugman might be right about Greece but we're not going down on our own.It will be the whole of euroland.I would also say that whereas Greece's external debt is owned by EU and Greek banks most of Spain's and Italy's debt is owned by US banks.
What the emminent economist ommits saying is the euro is doomed. This fact had been obvious to all the euro critics from the very beginning. All the arguments against the possibility of a common currency for very disparate countries had been raised, but brushed away by overzealous EU bureaucrats.
They'll learn their monetary lesson the hard way in the coming years.
Unfortunately the current discussion about Greece, Spain and all the other PIIGS countries is very superficial.Greece is everywhere!
In fact, the whole western world and Japan are over indebted.You've likely read in the press about debt to GDP figures like 200 percent for Japan, 115 percent for Italy, 113 percent for Greece, 85 percent for the U.S., 76 percent for France, 73 percent for Germany, or 80 percent for the UK.
But these debt leaves out important obligations like pensions and social security. If you add these in, you get what economists call the implicit government debt.If you use the implicit government debt to GDP ratio, the picture is much bleaker.
Mr Krugman might be right about Greece but we're not going down on our own.It will be the whole of euroland.I would also say that whereas Greece's external debt is owned by EU and Greek banks most of Spain's and Italy's debt is owned by US banks.
Why not yesterday? Millions, especially in Germany, would celebrate that. Just do it...
(JohnC., 4 June 2010 22:53
If Greece went down so will Portugal and Spain.Then the euro and German banks will be in kingdom come.If that happens don't be surprised if you the Germans wearing their boots again.
What the emminent economist ommits saying is the euro is doomed. This fact had been obvious to all the euro critics from the very beginning. All the arguments against the possibility of a common currency for very disparate countries had been raised, but brushed away by overzealous EU bureaucrats.
They'll learn their monetary lesson the hard way in the coming years.
Unfortunately the current discussion about Greece, Spain and all the other PIIGS countries is very superficial.Greece is everywhere!
In fact, the whole western world and Japan are over indebted.You've likely read in the press about debt to GDP figures like 200 percent for Japan, 115 percent for Italy, 113 percent for Greece, 85 percent for the U.S., 76 percent for France, 73 percent for Germany, or 80 percent for the UK.
But these debt leaves out important obligations like pensions and social security. If you add these in, you get what economists call the implicit government debt.If you use the implicit government debt to GDP ratio, the picture is much bleaker.
Mr Krugman might be right about Greece but we're not going down on our own.It will be the whole of euroland.I would also say that whereas Greece's external debt is owned by EU and Greek banks most of Spain's and Italy's debt is owned by US banks.
Why not yesterday? Millions, especially in Germany, would celebrate that. Just do it...
(JohnC., 4 June 2010 22:53
If Greece went down so will Portugal and Spain.Then the euro and German banks will be in kingdom come.If that happens don't be surprised if you the Germans wearing their boots again.
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