The EU may implode! Does it matter?

Ralphy1

Ralphy1

Well-known Member
Greece's new leader says they may not pay back their debt. With other weak economies like Italy, Spain and Portugal watching, it seems like it could all come apart. Pundits say that some would welcome a dissolution but in the long run it would be a catastrophe for Europe. Your thoughts would be of interest...
 

How many times have we heard that Greece is going to default? Too many. If I was an active trader, I would be more concerned with Germany's economy.
 
Demand Side economists have been warning Europe for quite some time... You cannot CUT your way to prosperity. The economics of a COUNTRY is very much different than that of a household. While it sounds cutsie and "common sense" to think of a National budget as the same as a household budget it is apples and oranges. The only way to stimulate an economy and to create jobs and growth is through spending... but spending in a way that puts money in the average persons pocket. Jobs.. intrastructure spending... etc.. THIS will grow the economy by creating a demand for goods and services to meet what people (who have some extra money) want to buy. This in turn fills the revenue need by taxes. All this cutting and austerity has the opposite effect, and Europe is finding that out. Unfortunately, our own economic recovery has been hampered by those in Washington who subscribe to the same old erroneous Supply Side economic policies that fail over and over... that's the old bogus "trickle down".... never worked... never will.
 

It seems to be working here [slowly but surely] by cuts, we are in a better position than 5 years ago. Jobs have been created and both private and public jobs have taken less money [frozen salaries or very low pay increases.]The massive welfare bill has been cut too. We are not in the same boat as Greece, in fact they should never have been invited into the EU at all in the first place.You can't spend your way out of everything.
 
What I meant to say is, that it takes a mixture of policies to succeed, and here in the UK , although there are difficult times still to come, we are doing quite well.The Greece situation is awful, no doubt some of their vast debt will have to be either 'forgiven' or deferred.
 
My guess is that some EU members might arrange a bailout similar to the US bailouts of the auto industry and AIG. Some things will be left to fail . I'm with oldman if Germany goes or leaves the EU then the EU will fail. Just saw an article a week or two ago where there are more Germans even closer to their poverty line. And just like any "union" member they won't like others getting their work or money.

Besides the news over the last several years I saw pictures of the summer Olympic sites neglected and decay. If you can't repurpose an old Olympic site I don't think you can rebuild an entire economy. Very telling and ominous .

http://www.huffingtonpost.com/2012/08/03/athens-olympics-venues-photos-abandoned_n_1739264.html
 
Hold on, not so fast QS; remember what happened to Japan when they tried to spend their way out of their recession? Spending is not always the answer, especially if it includes running up the country's national debt. Sooner or later, a time will come when the devil will need to be repaid. No country wants to default on their debt. We (U.S.) bailed out Russia in the 60's or 70's' when we forgave the billions that they owed the U.S. That favor was soon forgotten by the Russians, but had we not bailed them out and the Ruble would have collapsed the flip side would have been even more devastating.

I have often thought that there are a lot of backroom deals worked out politically between governments that the public is never made aware of for fear of panic.
 
oldman said:
Hold on, not so fast QS; remember what happened to Japan when they tried to spend their way out of their recession? Spending is not always the answer, especially if it includes running up the country's national debt. Sooner or later, a time will come when the devil will need to be repaid. No country wants to default on their debt. We (U.S.) bailed out Russia in the 60's or 70's' when we forgave the billions that they owed the U.S. That favor was soon forgotten by the Russians, but had we not bailed them out and the Ruble would have collapsed the flip side would have been even more devastating.

I have often thought that there are a lot of backroom deals worked out politically between governments that the public is never made aware of for fear of panic.
Click to expand...

Remember how Eisenhower paid off our huge debt from WWII... ?? Spending
 
The Greeks just elected a new government which favors ending the severe austerity regimens that Greece has been forced to comply with. This means they will default and leave the EU and based on the comments of Paul Krugman this is their best option. http://krugman.blogs.nytimes.com/2015/01/28/thinking-about-the-new-greek-crisis/?_r=0

On the topic of EU dissolution, it use to be thought that if Greece left it would prompt Italy, Spain and Portugal to leave as well, but recently the thinking is that those other three countries will not leave and the EU will survive minus Greece.
 
Ike did well. Politics aside, his position was to not lower taxes as many other politicians wanted him to. Instead, he put people to work by building the first Interstate highway system and increasing our military might to fend off and deal with the cold war. The national debt dropped during his tenure as it did with Truman. Both Presidents achieved what they said they would do. That was a different time and each country had their own philosophy to deal with economics based on their country's needs. Today, we have this thing called a global economy. Really? Talk about a subject that is argumentative.

If you are trying to turn this into a political argument, I capitulate. You win. I don't argue politics.
 

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