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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (31314)	4/12/2010 4:24:41 AM
From: GUSTAVE JAEGER	Respond to of 81177

Re: “Unfortunately there are problems with Germany because it does not want to be the deep pockets helping out the profligate southerners which got into trouble. [But] if that is the case, the euro is in danger and the European union is in danger. I just hope that Germany will be helpful.” That statement vindicates what I just told you earlier: Germany ending up as the sole bankroller of last resort for her fellow EU partners... Things would be much better if the EU were endowed with a SECOND Germany --which would dispel the awkward impression that a single constituency (the Germans) must unfairly make up for all the others' deficiencies. Again, I think economist Paul Krugman sums it up accurately when he points to Europe's lack of GDP growth: So how did the U.S. government manage to pay off its wartime debt? Actually, it didn’t. At the end of 1946, the federal government owed $271 billion; by the end of 1956 that figure had risen slightly, to $274 billion. The ratio of debt to G.D.P. fell not because debt went down, but because G.D.P. went up, roughly doubling in dollar terms over the course of a decade. The rise in G.D.P. in dollar terms was almost equally the result of economic growth and inflation, with both real G.D.P. and the overall level of prices rising about 40 percent from 1946 to 1956. [...] And that means that unlike postwar America, which inflated away part of its debt, Greece will see its debt burden worsened by deflation. [...] So Greece won’t grow its way out of debt. On the contrary, it will have to deal with its debt in the face of an economy that’s stagnant at best. nytimes.com Ultimately, it's Europe's inability to grow (her GDP) that will spell her demise... Gus

To: philv who wrote (31314)	4/12/2010 9:24:16 PM
From: sea_urchin	Read Replies (1) \| Respond to of 81177

Phil > The eurozone area and wider European Union is now “on the brink” of disintegration unless Germany steps up and provides loans at below-market rates to Greece, George Soros, the hedge fund manager, has warned. First, we let them squirm, then we print the money, then we've got them by the balls. imarketnews.com >> The package, E30 billion of loans from eurozone members plus another E10 billion contributed by the International Monetary Fund, are designed to counter any difficulty that Greece may have in refinancing is maturing debt through the financial markets. Reports said that the rate on the loans to Greece would be in the region of 5%, significantly cheaper than the country can currently borrow given market sentiment at the country's diminished credit rating. <<