Comments on: Europe must be persuaded to make a permanent fix http://blogs.reuters.com/lawrencesummers/2012/06/18/europe-must-be-persuaded-to-make-a-permanent-fix/ Sat, 21 Jun 2014 15:30:06 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: mulholland http://blogs.reuters.com/lawrencesummers/2012/06/18/europe-must-be-persuaded-to-make-a-permanent-fix/#comment-597 Tue, 19 Jun 2012 21:51:52 +0000 http://blogs.reuters.com/lawrencesummers/?p=222#comment-597 The permanent fix is to run budget surpluses and pay down the debt.

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By: pavlaki http://blogs.reuters.com/lawrencesummers/2012/06/18/europe-must-be-persuaded-to-make-a-permanent-fix/#comment-596 Tue, 19 Jun 2012 20:21:32 +0000 http://blogs.reuters.com/lawrencesummers/?p=222#comment-596 If we accept that the Eurozone broadly has a core and a periphery who need different rates and values the only way this can be achieved is to have two Euros. The exchange rate between the two can be managed by the central bank as can the respective interest rate. This provides immediate but managed devaluation to the periphery. Certainly Germany will suffer as part of the core but much less than a total collapse. It also avoids the dreaded fiscal transfer. As the economies of the periphery improve then the value of Euro2 can be managed back towards that of the central Euro. The time taken to do this can be used to put in place a structure for future full fiscal integration. Not a perfect solution by any means but neither is doing nothing and hoping that something will turn up.

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By: ALLSOLUTIONS http://blogs.reuters.com/lawrencesummers/2012/06/18/europe-must-be-persuaded-to-make-a-permanent-fix/#comment-595 Tue, 19 Jun 2012 18:51:55 +0000 http://blogs.reuters.com/lawrencesummers/?p=222#comment-595 Prosperity comes from less government and less government spending. A great nation will have zero debt, except in time of war; in fact it should have a cumulative surplus.

It is not the purpose of government to provide economic benefits to its citizens. Government is about rules and fair play, with no concern about the results.

Censorship is evil.

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By: trevorh http://blogs.reuters.com/lawrencesummers/2012/06/18/europe-must-be-persuaded-to-make-a-permanent-fix/#comment-594 Tue, 19 Jun 2012 16:23:38 +0000 http://blogs.reuters.com/lawrencesummers/?p=222#comment-594 @TheUSofA

“These financial crises are borne in the private sector”

Are you serious???

The government borrows too much money, cannot repay. So government forces bond buyers to take a loss by defaulting on its obligation. This results in people too scared to buy government bond driving the bond yield up.

The addition now is that some banks (in Spain) even guilty of blowing up real estate bubble now are eating up loan loss, don’t have enough money to buy Spain’s bond either. Yield go up even higher.

But at the end, the problem is the government! period!

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By: SvenBolin http://blogs.reuters.com/lawrencesummers/2012/06/18/europe-must-be-persuaded-to-make-a-permanent-fix/#comment-593 Tue, 19 Jun 2012 12:28:12 +0000 http://blogs.reuters.com/lawrencesummers/?p=222#comment-593 You promise to fix the US economy permanently Mr. Summers and I can assure you the EU will fix its accordingly!

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By: usagadfly http://blogs.reuters.com/lawrencesummers/2012/06/18/europe-must-be-persuaded-to-make-a-permanent-fix/#comment-592 Tue, 19 Jun 2012 03:45:00 +0000 http://blogs.reuters.com/lawrencesummers/?p=222#comment-592 The question is whether a people’s sovereignty over their lives and their land can be sold. Should the highest bidder rule? I think obviously not. Yet that is the system we use in the USA. And the highest bidder, the ruler, can choose war or peace and with whom. They can take and take in the form of taxes, abrogate obligations to the people as a whole, and stuff their pockets at the public treasury. They can print money without limit, and force “their” people to accept that script as payment.

There is no point whatsoever in repaying “loans” that were made to others without your consent. When law is twisted to cancel rights of freedom, it is no longer “law” but “edict”. Be careful who you loan money to and use your head to determine whether you are likely to be repaid.

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By: TheUSofA http://blogs.reuters.com/lawrencesummers/2012/06/18/europe-must-be-persuaded-to-make-a-permanent-fix/#comment-591 Tue, 19 Jun 2012 03:20:16 +0000 http://blogs.reuters.com/lawrencesummers/?p=222#comment-591 I thought neoliberalism was the way of the future? What happened? Tell us again how awesome globalization is for everyone. You mean there is no such thing as unlimited growth and money doesn’t grow on trees? Someone should tell the governments and the banks. I can’t wait until the rest of the world adopts the mindless consumption model.

In a world dominated by creditors, trying to save the creditors will not fix the long term. The financial sector needs to be cut to half it’s current size at least. Like government, it s bloated, irresponsible, driven by greed and lacking morals and ethics. These financial crises are borne in the private sector.

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By: Greenspan2 http://blogs.reuters.com/lawrencesummers/2012/06/18/europe-must-be-persuaded-to-make-a-permanent-fix/#comment-590 Mon, 18 Jun 2012 23:57:25 +0000 http://blogs.reuters.com/lawrencesummers/?p=222#comment-590 The only good advise here from Mr. Rentier Capitalism is the rate reductions needed to avoid further shrinking of economic growth. Wealth transfer need not be as generous as Summers suggests as his motive is to both absolve responsibility from fraud, such as what occurred with both the S&L scandal and the TARP concealed investment bank crimes, but to assure that the so called investors can collect their continuous revenue stream, backed of course by taxpayers.

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