On the long term, you cannot spend more than you earn.
(Analyst, 5 February 2012 13:48)
Very true, but don't forget, Germany is responsible for this, not Greece. It was Germany who pushed Greece and other EU countries to borrow more (beyond their means) at low interest rates, because this meant they would be buying more German products and keeping German exports strong. Germany was, in effect, pushing Greece (and others) to buy more German products to make the German financial balance sheets look rosy. The whole thing was unsustainable and collapsed like a house of cards, and now German and French banks are on the hook for billions in bad loans. This bailout package is not bailing out Greece, it is a bailout package to the German and French banks. I say let them sink, they are fully responsible for giving bad loans and have nobody else to blame but themselves.
@Analyst.
Tell this to the U.S.A or Denmark! Their record depts make the greek dept seem like a joke.e.If all countries of south Europe didn't have debts,there wouldn't exist a german economy as we know it today but an economy as it was in the late 19th century ,when large numbers of poor Germans migrated f.e. to the U.S.And if someone likes the myth of hard working north and lazy south, ok, but don't forge ,that the truth is much, much more compicated
Interesting thoughts. But why do people think that Greece could restart after it defaults? It's not only due the interest rates of their too high debt that Greece spends much more than they earn. Even without paying interests, the state budged would be negative, i.e. too much spending and/or too less earnings. Nobody would lend any new money to this 'new Greece', so 'austerity packets' would be needed as well, maybe even stricter ones. It's simple, for a person as well as for a state: On the long term, you cannot spend more than you earn.
Mr. Friedman should spend a few hours studying the fate of the developing countries in the past decades. How when they got in financial trouble the IMF imposed measures like the privatization of industries for far under the real price and sudden changes in policy so that thousands of companies went bust. Anyone who remembers that one of the causes Yugoslavia fell apart were some IMF dictates?
Ruling a country is a complicated job for which you need a lot of people who know what they do. Sending in some 40-year old German diplomat whose knowledge of Greece is restricted to one two-week holiday is asking for trouble. It will make the rule of Bremer in Iraq look like a show of competence.
One should also mention Germany's one of the world's largest arms producers. Its two largest customers are Greece & Turkey. Other clients include Kosovo and Serbia.
Therefore one might ask if Germany really has any interest in peace and stability in southeastern Europe.
On the long term, you cannot spend more than you earn.
(Analyst, 5 February 2012 13:48)
Very true, but don't forget, Germany is responsible for this, not Greece. It was Germany who pushed Greece and other EU countries to borrow more (beyond their means) at low interest rates, because this meant they would be buying more German products and keeping German exports strong. Germany was, in effect, pushing Greece (and others) to buy more German products to make the German financial balance sheets look rosy. The whole thing was unsustainable and collapsed like a house of cards, and now German and French banks are on the hook for billions in bad loans. This bailout package is not bailing out Greece, it is a bailout package to the German and French banks. I say let them sink, they are fully responsible for giving bad loans and have nobody else to blame but themselves.
One should also mention Germany's one of the world's largest arms producers. Its two largest customers are Greece & Turkey. Other clients include Kosovo and Serbia.
Therefore one might ask if Germany really has any interest in peace and stability in southeastern Europe.
Mr. Friedman should spend a few hours studying the fate of the developing countries in the past decades. How when they got in financial trouble the IMF imposed measures like the privatization of industries for far under the real price and sudden changes in policy so that thousands of companies went bust. Anyone who remembers that one of the causes Yugoslavia fell apart were some IMF dictates?
Ruling a country is a complicated job for which you need a lot of people who know what they do. Sending in some 40-year old German diplomat whose knowledge of Greece is restricted to one two-week holiday is asking for trouble. It will make the rule of Bremer in Iraq look like a show of competence.
@Analyst.
Tell this to the U.S.A or Denmark! Their record depts make the greek dept seem like a joke.e.If all countries of south Europe didn't have debts,there wouldn't exist a german economy as we know it today but an economy as it was in the late 19th century ,when large numbers of poor Germans migrated f.e. to the U.S.And if someone likes the myth of hard working north and lazy south, ok, but don't forge ,that the truth is much, much more compicated
Interesting thoughts. But why do people think that Greece could restart after it defaults? It's not only due the interest rates of their too high debt that Greece spends much more than they earn. Even without paying interests, the state budged would be negative, i.e. too much spending and/or too less earnings. Nobody would lend any new money to this 'new Greece', so 'austerity packets' would be needed as well, maybe even stricter ones. It's simple, for a person as well as for a state: On the long term, you cannot spend more than you earn.
@Analyst.
Tell this to the U.S.A or Denmark! Their record depts make the greek dept seem like a joke.e.If all countries of south Europe didn't have debts,there wouldn't exist a german economy as we know it today but an economy as it was in the late 19th century ,when large numbers of poor Germans migrated f.e. to the U.S.And if someone likes the myth of hard working north and lazy south, ok, but don't forge ,that the truth is much, much more compicated
One should also mention Germany's one of the world's largest arms producers. Its two largest customers are Greece & Turkey. Other clients include Kosovo and Serbia.
Therefore one might ask if Germany really has any interest in peace and stability in southeastern Europe.
On the long term, you cannot spend more than you earn.
(Analyst, 5 February 2012 13:48)
Very true, but don't forget, Germany is responsible for this, not Greece. It was Germany who pushed Greece and other EU countries to borrow more (beyond their means) at low interest rates, because this meant they would be buying more German products and keeping German exports strong. Germany was, in effect, pushing Greece (and others) to buy more German products to make the German financial balance sheets look rosy. The whole thing was unsustainable and collapsed like a house of cards, and now German and French banks are on the hook for billions in bad loans. This bailout package is not bailing out Greece, it is a bailout package to the German and French banks. I say let them sink, they are fully responsible for giving bad loans and have nobody else to blame but themselves.
Mr. Friedman should spend a few hours studying the fate of the developing countries in the past decades. How when they got in financial trouble the IMF imposed measures like the privatization of industries for far under the real price and sudden changes in policy so that thousands of companies went bust. Anyone who remembers that one of the causes Yugoslavia fell apart were some IMF dictates?
Ruling a country is a complicated job for which you need a lot of people who know what they do. Sending in some 40-year old German diplomat whose knowledge of Greece is restricted to one two-week holiday is asking for trouble. It will make the rule of Bremer in Iraq look like a show of competence.
Interesting thoughts. But why do people think that Greece could restart after it defaults? It's not only due the interest rates of their too high debt that Greece spends much more than they earn. Even without paying interests, the state budged would be negative, i.e. too much spending and/or too less earnings. Nobody would lend any new money to this 'new Greece', so 'austerity packets' would be needed as well, maybe even stricter ones. It's simple, for a person as well as for a state: On the long term, you cannot spend more than you earn.
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