Comments on: How 50 bln euros might save the euro

By: AZWarrior

AZWarrior — Tue, 03 Jul 2012 15:07:48 +0000

When all the fun and games are over, the grim reaper of Darwinian Capitalism hovers ready to apply the ultimate sanction on the folly of pandering politicians and their greedy minions. Wow, that was a lot of fun to say. Too bad it is the truth.

By: stevedebi

stevedebi — Mon, 02 Jul 2012 20:51:07 +0000

I don’t see why Germany or any other “core” country would agree to paying higher interest rates so that other prodigal countries could have lower interest rates. I don’t see this as any different than the basic concept of Eurobonds.

By: Huna

Huna — Sat, 30 Jun 2012 07:59:54 +0000

They can just print em up, so what?
Did you think that is real money?

By: fxmastertrader

fxmastertrader — Fri, 29 Jun 2012 07:48:28 +0000

the issue is not the interest. the more important problem is the structural deficit in the budget which cannot be resolved by simply injecting fresh money or subsidizing interst. one key is to change the goverment policy in the relevant countries, but also to change the european policy. the eu-countries need to align their social- and tax-policies and have to adopt a cross-boarder fiscal policy.

By: mulholland

mulholland — Fri, 29 Jun 2012 00:00:33 +0000

Stop borrowing and the interest rates won’t matter.

By: WhatIBelieve

WhatIBelieve — Thu, 28 Jun 2012 09:52:37 +0000

It does not really matter what solution they come up with. All solutions in one way or another demand Germany to guaranty any credit or loans or eurobonds or what ever you call it. Germany would have to be the bank of Europe, issuing bonds and loans to the other that they cannot pay. In next turn Germany would be so debt ridden that they collapse.
There is no way that Merkel or any German would do such a thing and still be sane. They don’t want to drown themselves with debt while others are using those borrowed money.

How come that you Journalists do not understand such things.

The best thing for Germany, would be to leave the Euro behind and take the loss and start grow again. And Germany would not grow into a possibly enemy of the other European countries. They have learnt that lesson and the population of the nation is to old. There is not enough youngsters to do the fighting, thanks to abortion.

By: spikeguilfoyle

spikeguilfoyle — Wed, 27 Jun 2012 17:25:16 +0000

The perfect interim fix:
- transparent
- reversible
- affordable
It is a also a concept familiar and palatable to German taxpayers (Finanzausgleich).

I hope Angela is listening!

By: MinorHeretic

MinorHeretic — Tue, 26 Jun 2012 21:56:00 +0000

This seems like a cheaper and more flexible alternative, but it ignores the problem at the foundation of the Euro. Sure, interest subsidies could push off the day of reckoning, but what do we mean when we say “reform”?

The Euro is an equal currency for unequal economies. The problem is that the Euro northern core has a perpetual trade surplus with the Euro periphery, which means perpetual unidirectional cash flow. It’s not sustainable. Can Greece (or Portugal, or…) become an industrial powerhouse to compete with Germany before the subsidy money runs out? I don’t think so.

By: mhjhnsn

mhjhnsn — Tue, 26 Jun 2012 17:54:33 +0000

That’s how this all started–hi-risk peripheral countries borrowing at rates appropriate for the core. If the core was willing to do it they would have alread done so 2 years ago.

By: LeRuscino

LeRuscino — Tue, 26 Jun 2012 13:56:49 +0000

Saving the Euro is not the game – Its getting ready to collapse in line when the US Dollar crashes!

Laws of physics – work it out!