Comments on: Geithner and the delicacy of Euro-Dollar diplomacy Wed, 16 Jul 2014 00:47:01 +0000 hourly 1 By: SCSCSCSC Mon, 19 Sep 2011 14:02:34 +0000 Astuga, I beg to differ. The way the EU has behaved over the last 2 years as each crisis comes and goes shows that member states are a very loose federation indeed. Given that they cannot agree amongst themselves or with the ECB or with Geithner shows that too.

Given the lack of any suitable solution on the table at the EU ministers meeting last week, Geithner merely put forward an idea that might cover middle ground. It seems that Geithner realises the gravity of the situation unlike our fellow Europeans. It does look like the EU is not going to listen to the markets (quote from Manual Barroso) until it is too late.

Merkel and Sarkozy pushed Europe into the Euro and now they have it they do not know what to do. They are responsible for 500m people in Europe and they all deserve better leadership than all of the EU bureaucrats have shown so far. Whilst the US has trouble too, at least they have a plan which is one thing that we sadly do not have.

By: astuga Fri, 16 Sep 2011 21:32:20 +0000 What kind of nonsense article is this?
First of all the EU is not a loosely connected federation!
Because the EU is not some kind of NAFTA, as you seem to belive – maybe it would be better if it were.
Make your homework on that!

And as a European I have to tell you we dont need the US of A to save us from ourselves and from our economic troubles.
Have you looked at your domestic chaos lately?
In fact that Geithner even attended that meeting was irritating for most Europeans, and it was a stupid thing to do.

By: SoundMoney Fri, 16 Sep 2011 19:19:01 +0000 Chris, I respect your quant analyses but your approbation of Geithner/Fed and disregard for deflation is misplaced. Growth from debt is unsustainable, and there exists good deflation, even from the debt deflation process, especially if the released funds turn toward productive investments that lead to real growth. Geithner, Fed and Eurozone pols fail to address the growth of debt issuances that turn negative and lead to market turmoil – it appears that they want the perpetuation of a broken system, likely because special interests gain under this model.

By: prepster411 Fri, 16 Sep 2011 17:20:25 +0000 Hey Chris, Mises said that “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”

Would you agree with Mises on this one?

If yes, aren’t all these bailouts and actions by the central banks just postponing or perhaps worsening the final outcome?