Comments on: Successful summit didn’t solve crisis http://blogs.reuters.com/hugo-dixon/2012/07/02/successful-summit-didnt-solve-crisis/ Mon, 18 Apr 2016 14:55:08 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Gordon2352 http://blogs.reuters.com/hugo-dixon/2012/07/02/successful-summit-didnt-solve-crisis/comment-page-1/#comment-418 Fri, 06 Jul 2012 16:21:53 +0000 http://blogs.reuters.com/hugo-dixon/?p=372#comment-418 Of course the “dinosaur” is still there — meaning the wealthy bankers and their “absentee landlord” investors, who are real underlying problem in the eurozone, as elsewhere — but I strongly disagree that “the dinosaur is less terrifying than it was a few weeks ago”.

We will NEVER fix the problem until we can understand what the problem really is — and we aren’t even close.

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By: SamuelReich http://blogs.reuters.com/hugo-dixon/2012/07/02/successful-summit-didnt-solve-crisis/comment-page-1/#comment-417 Thu, 05 Jul 2012 07:48:07 +0000 http://blogs.reuters.com/hugo-dixon/?p=372#comment-417 To get long lasting fix. The weak nations have to tax their non-exporting industries high enough so the rich put their money in exporting endeavors and the workers are forced go into them (where the jobs are). That means little money for real estate bubbles as well.

Also they need to pay off their debt with script good only for buying goods of 80% locally produced. The later is a form of default but one that subsidizes the long term solution.

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By: whyknot http://blogs.reuters.com/hugo-dixon/2012/07/02/successful-summit-didnt-solve-crisis/comment-page-1/#comment-416 Thu, 05 Jul 2012 06:54:52 +0000 http://blogs.reuters.com/hugo-dixon/?p=372#comment-416 Well Hugo this time you are not just a big wind.

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By: SamuelReich http://blogs.reuters.com/hugo-dixon/2012/07/02/successful-summit-didnt-solve-crisis/comment-page-1/#comment-412 Tue, 03 Jul 2012 04:29:27 +0000 http://blogs.reuters.com/hugo-dixon/?p=372#comment-412 The weak nations in the Euro are weak because they do not have a enough export industries to pay for imports and being small their trade is a greater percent of GDP.

The only solution for them is to create export industries and tax other enterprises so investment for the time being only flows into export industries. Since they engaged in height of folly of loaning to boost local real estate prices of import more, they may have default to do any solution.

The people of those nations should make sure those responsible for the above dysfunctional policies get big jail time.

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By: mulholland http://blogs.reuters.com/hugo-dixon/2012/07/02/successful-summit-didnt-solve-crisis/comment-page-1/#comment-411 Tue, 03 Jul 2012 03:07:01 +0000 http://blogs.reuters.com/hugo-dixon/?p=372#comment-411 The problem is that Keynesian deficit stimulus subtracts from economic growth during the repayment period. Hayek predicted such and Keynes agreed. There is no escape from repayment. Inflating the debt away is not an option. Reneging would collapse the banking system. The method of achieving budget surpluses to repay is to dismantle the socialist welfare system. All socialist systems to date have failed and Europe is not exceptional in this regard.

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By: ptiffany http://blogs.reuters.com/hugo-dixon/2012/07/02/successful-summit-didnt-solve-crisis/comment-page-1/#comment-407 Mon, 02 Jul 2012 21:15:59 +0000 http://blogs.reuters.com/hugo-dixon/?p=372#comment-407 “Last week’s summit took important steps to stop the immediate panic.”

Yet, they have no plans to actually DO anything until next year when they’ll create plans to do something, sometime. The optimistic view is that they might do something within five years or so. So far, like every other summit over the past two and a half years, they’ve agree to consider doing something, someday in the future.

This is progress? The Emperor has no clothes.

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By: fernando80 http://blogs.reuters.com/hugo-dixon/2012/07/02/successful-summit-didnt-solve-crisis/comment-page-1/#comment-405 Mon, 02 Jul 2012 10:49:33 +0000 http://blogs.reuters.com/hugo-dixon/?p=372#comment-405 “gordo53″. How is Germany going to be better off by abandoning the euro? what about the 1 trillion that is due to the bundesbank from other central banks? if Germany goes back to the Deutschemark, their new currency will appreciate massively, while the money due to Germany’s central bank will be converted to drachmas, liras, escudos, etc… Germany will lose trillions overnight. Not to mention the devaluation of foreign assets owned by Germany’s private sector including banks, foreign income by dividends and german exports. That’s why Germany’s politicians will keep doing what they can, for as long as they can to keep Germany in the eurozone

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By: gordo53 http://blogs.reuters.com/hugo-dixon/2012/07/02/successful-summit-didnt-solve-crisis/comment-page-1/#comment-404 Mon, 02 Jul 2012 10:17:37 +0000 http://blogs.reuters.com/hugo-dixon/?p=372#comment-404 The problem with Europe is that no amount of austerity, loans, bailouts, or defaults can fix the structural problems that exist. Economic disparities that are deeply rooted in culture and politics could take decades to resolve. The burden of subsidizing the entire european periphery for a protracted period falls almost exclusively on Germany. Right now Germany is reluctant to assume that resonsibility. That is unlikely to change. That unfortunate fact remains that Germany will be better off financially by abandoning the euro.

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