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Politics : Dutch Central Bank Sale Announcement Imminent?
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To: GUSTAVE JAEGER who wrote (22393)2/18/2005 7:59:16 AM
From: sea_urchin  Read Replies (1) of 81050
 
Gus > To give the pact teeth, the signatories set steep penalties to deter governments from financing their domestic spending programs through deficits. But because the early years of the euro were marked by slow growth or no growth throughout Continental Europe, Germany and France found themselves by 2003 facing fines on their breaches of the deficit limits amounting to upward of eight billion euros apiece.

On the other hand, although twin deficits in the US are running at record levels the debt is driving its economy. So, Euroland has to decide -- either it prints, devalues the Euro and grows or doesn't print, keeps the Euro strong and stagnates, as at present?

> The fear is that America's runaway budget and current account deficits and its snowballing $2.5 trillion foreign debt will sooner or later push the global economy into a serious crisis, perhaps with a free-falling dollar triggering some sort of cataclysmic upheaval in the world's financial markets.

Yet it would seem an even greater fear is that the stagnation of the European economy will push Euroland into recession. Europe wants economic growth without an increase in the money supply, with contracting export markets and without work. In fact, what they want to do is legislate it.*** Seems to me the Euro is being unfairly blamed for the policies of those who decide on Euroland economic policies.

*** exactly like the economic policies of the South African government
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