Comments on: Counterparties: Suddenly no one likes austerity http://blogs.reuters.com/felix-salmon/2012/04/24/counterparties-suddenly-no-one-likes-austerity/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: xit007 http://blogs.reuters.com/felix-salmon/2012/04/24/counterparties-suddenly-no-one-likes-austerity/comment-page-1/#comment-38741 Mon, 07 May 2012 21:39:34 +0000 http://blogs.reuters.com/felix-salmon/?p=13440#comment-38741 My dear Fi,
It is hard for these countries to look themselves in the face and find the one to blame. If their economy was truly undone by some greedy SOB – point him out. But aren’t we are told that the government will fix it when it was their incompetence and lack of financial acuity that got them in the trouble in the first place. So – do we double down on incompetence, government benefits, a social state and demand our fair share. In the end – life as usual cannot go on. This is the tough lessen families learn – countries learn. Watch as the lending dries up and the benefits fall short – and this whole thing unravels. I think what a lot of people with sense are saying – simply take care of your debts and get to the hard work of building your economy. The frustration shown here is they trusted their politicians and government and now they are shooting any messenger of austerity. However there is nowhere to pass this buck….Euro I mean…

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By: fionamacknz http://blogs.reuters.com/felix-salmon/2012/04/24/counterparties-suddenly-no-one-likes-austerity/comment-page-1/#comment-38488 Sun, 29 Apr 2012 21:44:40 +0000 http://blogs.reuters.com/felix-salmon/?p=13440#comment-38488 You can fool all of the people some of the time.

But now that their money is gone and they’re starting to pay attention, every third article they read is explaining that austerity doesn’t END a recession; austerity CAUSES it.

Being poor and finding out that it’s because some greedy b’tards stole the economy and then being asked to give up some more is, finally, not going that well.

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By: mick68 http://blogs.reuters.com/felix-salmon/2012/04/24/counterparties-suddenly-no-one-likes-austerity/comment-page-1/#comment-38476 Sat, 28 Apr 2012 20:48:59 +0000 http://blogs.reuters.com/felix-salmon/?p=13440#comment-38476 Been all of a few months, wonder how they’ll like it a year from now!

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2012/04/24/counterparties-suddenly-no-one-likes-austerity/comment-page-1/#comment-38381 Thu, 26 Apr 2012 16:59:59 +0000 http://blogs.reuters.com/felix-salmon/?p=13440#comment-38381 That may well be the case, but that doesn’t mean the economy was improved. A healthy economy would have found jobs for those people. You’re basically saying the deficits were masking a shortage of jobs, but the spending cuts did nothing to address the shortage.

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/04/24/counterparties-suddenly-no-one-likes-austerity/comment-page-1/#comment-38377 Thu, 26 Apr 2012 16:27:10 +0000 http://blogs.reuters.com/felix-salmon/?p=13440#comment-38377 http://www.google.co.uk/url?sa=t&rct=j&q =ebrd%20austerity%20baltics&source=web&c d=1&ved=0CCIQFjAA&url=http%3A%2F%2Fwww.e brd.com%2Fdownloads%2Fresearch%2Feconomi cs%2Fescape-austerity.pdf&ei=LXWZT_XWBO_ P4QSa9KDFBg&usg=AFQjCNGIsEF3MlIfLc956QYp jlfUC6NiSA&cad=rja

Unemployment under Thatcher was mostly “hidden unemployment” becoming unhidden, ie people who had spent their lives doing non-jobs in the public sector or in heavily unionised private sector jobs losing those non-jobs. If you think those people should have been kept in their non-jobs at public sector expense then yes we do have a fundamental difference.

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2012/04/24/counterparties-suddenly-no-one-likes-austerity/comment-page-1/#comment-38364 Thu, 26 Apr 2012 13:34:23 +0000 http://blogs.reuters.com/felix-salmon/?p=13440#comment-38364 And if inflation is your only metric for a healthy economy, and unemployment is not as important, then we shouldn’t be having this discussion, as we have a fundamental difference about what is a healthy or weak economy.

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2012/04/24/counterparties-suddenly-no-one-likes-austerity/comment-page-1/#comment-38363 Thu, 26 Apr 2012 13:31:27 +0000 http://blogs.reuters.com/felix-salmon/?p=13440#comment-38363 I wasn’t paying that much attention to inflation in the UK in the 80s, but when I googled it, it said it was about 5%, which is much higher than what we have now. And unemployment was high throughout her tenure.

I’m not familiar with the “train wreck” that you call China, but I don’t think the comparison is fair. What they had 10 years ago wasn’t an industrialized economy, and however bad you might think it is now, it’s far better than what they had. The standard of living for the average Chinese person has dramatically increased during their growth spurt, and before that, the lack of inflation was irrelevant to most people there, as they had little money anyway.

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/04/24/counterparties-suddenly-no-one-likes-austerity/comment-page-1/#comment-38361 Thu, 26 Apr 2012 12:44:25 +0000 http://blogs.reuters.com/felix-salmon/?p=13440#comment-38361 KenG_CA, Thatcher inherited high inflation from the Labour government and it took the high interest rates and cuts to tame it. It was when the spending spigot was opened again that inflation shot up again. Also inflation was not “high by today’s standards”, from 82 to 88 it was more or less where it is now.

One only has to look at the train wreck of China to see what happens when you spend like crazy to “drive growth”

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2012/04/24/counterparties-suddenly-no-one-likes-austerity/comment-page-1/#comment-38341 Wed, 25 Apr 2012 20:15:45 +0000 http://blogs.reuters.com/felix-salmon/?p=13440#comment-38341 Ireland still has very high unemployment (>14%, higher than in 2009, the peak of the crisis). The UK under Thatcher was marked by increased unemployment and high (especially by today’s standards) inflation.

While fiscal and economic crises are often related, they are not the same. Creditors of debtor nations don’t care about economic problems of their borrowers, they just want their money, and they don’t want more of it printed.

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By: TFMkts http://blogs.reuters.com/felix-salmon/2012/04/24/counterparties-suddenly-no-one-likes-austerity/comment-page-1/#comment-38328 Wed, 25 Apr 2012 14:35:11 +0000 http://blogs.reuters.com/felix-salmon/?p=13440#comment-38328 Although my title may have sounded that I was in favor of “Austerity Dying”, I don’t think “spending for growth” will work either. Ultimately, debt restructuring/leaving euro, with long term austerity is what it will take to get Europe out of this mess

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