The western world needs to recover the discipline lost when Nixon abandoned the gold standard. The current trend of increasingly attempting to print our way to prosperity is misguided and will end up in the demise of Western prosperity. It misallocates capital and human resources, rewards unproductive speculation, punishes creative productivity, and distorts the risk/reward and labor/reward relationships.
The western nations need to go through a re-adjustment of their economic paradigm, and this adjustment will be painful and politically unpalatable. To their credit, he Eurozone have accepted the necessity of this process, and it will result in sounder economies and in the Euro becoming the world's global reserve currency. The US, by contrast, seems determined to continue to debase and print. The world will lose faith in the USD as a result, and the loss of global reserve currency status will further impact US economic strength.
Greece and the Euro: Sideshow of a Main Show's Sideshow Note [View article]
The figures you show of GDP @ PPP suggest that Greece's economy is 1/6th of Germany's struck me as suspect, so I checked the CIA factbook, and it puts Greece's economy at 1/8th-1/9th of Germany's, which makes more sense.
The reality is that the on-going and expanding philosophy of endless bailouts at every level, countries, banks, industries, and individuals, is clearly unsustainable, because the bailees keep increasing as the world runs out of bailers. Sooner or later, something will give, and the longer this absurdity goes on, the greater the eventual implosion.
Germany should stand steadfast, let Greece collapse and be a lesson to the other irresponsible whiners, PIGS and others, waiting in line. Its time for responsibility to begin its slow and arduous return.
The Euro Gold Standard [View article]
The western world needs to recover the discipline lost when Nixon abandoned the gold standard. The current trend of increasingly attempting to print our way to prosperity is misguided and will end up in the demise of Western prosperity. It misallocates capital and human resources, rewards unproductive speculation, punishes creative productivity, and distorts the risk/reward and labor/reward relationships.
The western nations need to go through a re-adjustment of their economic paradigm, and this adjustment will be painful and politically unpalatable. To their credit, he Eurozone have accepted the necessity of this process, and it will result in sounder economies and in the Euro becoming the world's global reserve currency. The US, by contrast, seems determined to continue to debase and print. The world will lose faith in the USD as a result, and the loss of global reserve currency status will further impact US economic strength.
Greece and the Euro: Sideshow of a Main Show's Sideshow Note [View article]
www.cia.gov/library/pu...
The reality is that the on-going and expanding philosophy of endless bailouts at every level, countries, banks, industries, and individuals, is clearly unsustainable, because the bailees keep increasing as the world runs out of bailers. Sooner or later, something will give, and the longer this absurdity goes on, the greater the eventual implosion.
Germany should stand steadfast, let Greece collapse and be a lesson to the other irresponsible whiners, PIGS and others, waiting in line. Its time for responsibility to begin its slow and arduous return.