Comments on: Europe’s hair-trigger economy Sat, 21 Jun 2014 15:30:06 +0000 hourly 1 By: lynd Thu, 04 Apr 2013 14:16:45 +0000 isn’t the I.M.F. essentially bankrupt themselves ? so, basically, the insolvent I.M.F. that has no money is stealing other people’s money to pay their own bills. if i didn’t know better, i’d say this is a bank heist by the bankers !

By: lisandro Mon, 18 Mar 2013 18:27:56 +0000 Yes, very lucid article as most statements of Mr. Summers are. Problem is that a way out of this mess is impossible as long the credibility of the democratic process in Europe lies in tatters. Germany will not go along with any sort of EU Marshall plan as long many countries’ governments are driven by greedy and opportunistic politicians incapable of looking after the interests of the sovereign. The social contract between rulers and the sovereign has been broken in to many EU countries. Any reflation funds will flow into the hands of special interests groups and political parties in need of financing and not into productivity gains leading to economic growth.

To a great extent, the ‘easy’ life under the Euro, the lack of foreign exchange alarm bells, artificially low interest rates due to the glow effect of belonging to a club led by the DM, turned our politicians into businessman looking after their own interests and not the interests of the public good they serve. Until that is changed, there is not much hope for the EU currency union. Poor communication on Germany’s part and and a narrow view on the substance of having power on Mrs. Merkel part does not help either.

By: AdamSmith Mon, 18 Mar 2013 18:04:32 +0000 Europe’s most fundamental problem is the same as America’s: In every department store shelf, every item says Made in China.

The solution is rather simple: A protective tariff of 25% on every good manufactured outside of Europe.

But big money has no patriotic notions. Big money families, who inherited their wealth, have betrayed both the European worker and the American worker.

The WTO (World Trade Organization) is made up of big money families, spoiled rich kids now with gray hair, and they prey upon the destruction of the middle class.

How can we expect Europe or American middle classes to exist when it can’t feed or cloth itself, but instead depends on Chinese factories?

All your recipes for fixing Europe will fail. First and foremost Europe needs to protect its middle class with a protective tariff. Then European factories will spring up like blades of grass after a rain.

By: pbgd Mon, 18 Mar 2013 17:34:26 +0000 The Eurozone is an artifical construct based on wishful thinking and deception. The sorcerers’ apprentices who conceived it know that is has already failed, but they keep pretending they can somehow save it by trying different experiments.

By: reality-again Mon, 18 Mar 2013 13:39:49 +0000 Excellent, lucid article.
Two of Europe’s main problems are the unwillingness to see the truth or speak it.
Another problem is the European welfare state, a model that worked for decades by providing stability to economies fueled by debt. Now, with low and negative population growth and a currency that distorts the markets, this model is no longer sustainable in most EU countries, and the inability to recognize this fact, let alone do anything about it is increasing the likelihood of major political crises down the road.