Merkel Does The Devil's Work | 167 comments (167 topical, editorial, 0 hidden)

Re: Merkel Does The Devil's Work (4.00 / 6)

There is some truth in the argument about printing money without creating value. Currently bailout money has mostly gone directly to private debtors.

Had the bailout money been first used to pay to produce something valuable and then taxed and the taxes used to pay out private debtors the situation in Europe would be better than now.

by Jute on Mon Aug 26th, 2013 at 03:50:37 AM EST

Re: Merkel Does The Devil's Work (4.00 / 3)

I agree, but I didn't understand that she was talking about the bailouts, which afaik were contributed to by state budgets. I understood her to be referring to the ECB's provision of liquidities to the banking system, and probably also to bond purchases, where it could be said by inflation hawks that the ECB was "printing banknotes".

In fact, it's true, the provision of liquidities does not filter through to the "real" economy and create activity. But that is also why the inflation figures don't move...

by afew (afew(a in a circle)eurotrib_dot_com) on Mon Aug 26th, 2013 at 11:42:47 AM EST
[ Parent ]

Re: Merkel Does The Devil's Work (4.00 / 2)

But that is also why the inflation figures don't move...

True at a limit which the European Periphery is far from reaching. Direct payments via OMP to the unemployed and similar direct payments to finance medical services in Greece and Portugal could be made to a significant percentage (20-40%) of current GDP in those countries without producing inflation - right up to the point where there begins to be wage push inflation. What is being done now is simply the imposition of gratuitous suffering due to (charitably) rigidly and almost religiously clinging to irrelevant economic and monetary views.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Aug 26th, 2013 at 03:48:47 PM EST
[ Parent ]

Re: Merkel Does The Devil's Work (4.00 / 2)

What is being done now is simply the imposition of gratuitous suffering due to (charitably) rigidly and almost religiously clinging to irrelevant economic and monetary views.

greece needs another 10 bill so it doesn't default on the 300 bill they owe to foreign banks.

10 bill is cheap to keep the german volk from realising who their real enemies are...

... or where their tax euros are headed for!

roll on the day when the pfennig drops

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty

by melo (melometa4(at)gmail.com) on Tue Aug 27th, 2013 at 06:20:42 PM EST
[ Parent ]

Merkel Does The Devil's Work | 167 comments (167 topical, 0 editorial, 0 hidden)

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