Comments on: IMF-euro conditions not what they seem

By: rwmccoy

rwmccoy — Mon, 30 Apr 2012 07:32:32 +0000

The Euro will survive. Simply because the people (Europeans) want it.
On the other hand, governments, banks and assorted monetary institutions will not survive. Simply because they are not only broke, but insolvent to the point of too big to bail. Moreover, their credibility as a good place to invest funds is slightly below zero. I can think of few occupations more futile than being a seller of Spanish, Greek, Portuguese or even Irish bonds. The domestic banks of these countries and the ECB might buy them, but that is as far as it goes.

Reforms will come after a systemic collapse of the credit markets but not before. The political shift outlined above is just the beginning of the end. The telling moment will be when the forces of ‘growth orientation’ collide with ‘market discipline’. It won’t be a pretty sight.

rwmccoy

By: sangell

sangell — Tue, 24 Apr 2012 11:28:48 +0000

Its not like there is a choice on fiscal policy. Don’t want to cut your budget deficit? OK, but expect to see your debt service costs increase. How is that ‘stimulative’? Can you even stimulate a debt choked economy with lousy demographics? The experience of Japan says no and the US, which has had loads of fiscal and monetary stimulus, doesn’t seem to indicate you’ll get to sustained economic take off either. More likely, the PIIGS, like an airplane with too much weight, will simply speed down the runway unable to gain altitude and crash and burn when the runway ends.

By: ektope

ektope — Mon, 23 Apr 2012 17:57:52 +0000

Wishful thinking of another Anglosaxon who sleeps and wakes up with the dream that the Euro will be abolished!!!

By: ektope

ektope — Mon, 23 Apr 2012 17:57:37 +0000

Wishful thinking of another Anglosaxon who sleeps and wakes up with the dream that the Euro will be abolished!!!

By: scythe

scythe — Mon, 23 Apr 2012 16:39:37 +0000

the article is more a wish list than pragmatism;

thrifty european households will replace the debt-junky delusions of market speculators;

agrarian-based conservative consumption patterns and politics will regain their place;

and more europeans will enjoy living and working in different EU states over their lifetime

one of the benefits of mobility within the single EU market

the IMF’s area of interest will be to continue threatening those fiscal reprobates (e.g. greek politicans) if they continue to rely on sovereign welfare payments

By: Farkel4

Farkel4 — Mon, 23 Apr 2012 13:24:50 +0000

The IMF and World Bankers have a special way of defying the laws of arithmetic.

Money is a concept…and as any other concept can be shaped and molded over time by the ones who know better.

You may have to pay $7 for bread, and $13 for milk…but in the end, you will be OK with the new concept.