I suggest you read a little on the Eurozone itself. There would be no problem with Greece defaulting if it wasn't for the fact that it's part of the Euro.
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I don't know why you're even dwelling on the point that you are. I never said that Greece isn't part of the EU. I never said that Greece defaulting on it's debt wouldn't be a problem for the EU. Greece defaulting on its debt would be a problem because it is part of the Euro.
What I did say was that the EU will default on its debt. That debt defaults inevitably happen. Not all the time. But about a twice a century or so for any given country. Greece has debt problems. Inevitably, Greece's debt problems will be transferred onto the EU central bank as a whole in one way or another through bail outs or debt swaps or whatever. Even though the EU central government doesn't have a lot of debt now, it will. This global debt crisis will cause them to go into major debt as the debts of the EU's individual countries is socialized onto the EU collectively. And then when things reach their breaking point the EU will default/devalue.
I have never heard a single person explain how we are much different because we can "control" our currency.
Our biggest funding issues going forward are our entitlement programs and our debt. Devaluing our currency to get our from under the debt problem sounds nice until you realize that our entitlements are pegged to inflation. So you inflate away 10 trillion in debt and you pick up an additional 100 trillion in entitlement obligations. Do YOU or anyone else here really believe we will remove that peg? Hell, didn't we send people on social security a check this year because inflation didn't go up (at least how we measure it)?
I can not possibly see our politicians pissing off a very large portion of the voting public in order to "pay" our debt (basically not pissing off our debt holders as bad). We will eventually default for the same reasons the Greeks are, our voting public will not tolerate significant changes to what they are entitled to and politicians, for the most part, simply want to get (re)elected. We can't raise taxes enough either, even if that was politically feasible.
Making matters even worse is all the game playing and legalized accounting fraud in both the public and private sectors. Eventually the math always wins.
I suggest you read a little on the Eurozone itself. There would be no problem with Greece defaulting if it wasn't for the fact that it's part of the Euro.
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I don't know why you're even dwelling on the point that you are. I never said that Greece isn't part of the EU. I never said that Greece defaulting on it's debt wouldn't be a problem for the EU. Greece defaulting on its debt would be a problem because it is part of the Euro.
What I did say was that the EU will default on its debt. That debt defaults inevitably happen. Not all the time. But about a twice a century or so for any given country. Greece has debt problems. Inevitably, Greece's debt problems will be transferred onto the EU central bank as a whole in one way or another through bail outs or debt swaps or whatever. Even though the EU central government doesn't have a lot of debt now, it will. This global debt crisis will cause them to go into major debt as the debts of the EU's individual countries is socialized onto the EU collectively. And then when things reach their breaking point the EU will default/devalue.
Like I said, you need to read up on the Eurozone in order to better understand the situation. The first thing is that there is no such thing as a EU central government. The EU doesn't operate in the same manner as the US federal govenrment. The EU is not even a federalized state. Debt is not held by the "central government". Debt is held by the individual EU members. Even then, not all members of the EU are part of the Eurozone. Greece's problem is definitely not the UK's problem and they're not going to contribute a cent to help them weather this storm. That's what I was arguing about.
As for defaulting on their debts, you won't see the major European economies like the UK or Greece defaulting on its debt. Just because certain European countries defaulted on its debt in the past, doesn't mean that they will do so again in the future. If things were this easy, then there would no incentives for governments to repay their debt with interest.
I think the US is in much better shape and position to tackle its debt than Greece. The two countries are even comparable at all. Politicians will get together to tackle the debt problem when push comes to shove. Defaulting is not what any US government would contemplate of doing. It's inevitable that taxes will eventually go up and non-discretionary spending will be cut. Mark my words, this will happen and debt default will not.
Mark my words. We will raise taxes, we will cut some spending, and it will not nearly be enough.
I already know the EU has only a weak central government and people don't even like to call it a government. But it is a government. And I know not all EU members are in the EU monetary bloc. Debt is not held by the EU central government but it will be. The EU central government will expand and become more powerful to deal with this situation. I'm not saying that they will gain all sorts of government power. But they will gain substantial power concerning money issues for the members of the EU monetary union.Like I said, you need to read up on the Eurozone in order to better understand the situation. The first thing is that there is no such thing as a EU central government. The EU doesn't operate in the same manner as the US federal govenrment. The EU is not even a federalized state. Debt is not held by the "central government". Debt is held by the individual EU members. Even then, not all members of the EU are part of the Eurozone. Greece's problem is definitely not the UK's problem and they're not going to contribute a cent to help them weather this storm. That's what I was arguing about.
As for defaulting on their debts, you won't see the major European economies like the UK or Greece defaulting on its debt. Just because certain European countries defaulted on its debt in the past, doesn't mean that they will do so again in the future. If things were this easy, then there would no incentives for governments to repay their debt with interest.
I actually don't know what they are protesting. The closest explanation I've found is some vague reference to how the corrupt government has been mishandling things for 30 years and so the people should not pay for its misdeeds. This pretends that they were not part of the corruption and knew about it, which of course they did. I honestly have no idea what these people are protesting against, in which world their protest makes logical sense.Sorry, but why are unions leading the protests in Greece? Yea it was the government that spent too much, borrowed too much, and the cuts will be hurting the workers...
But that is reality. What is the alternative? The government is too far in debt, they have to tax and cut spending. What do these union thugs want done differently? I would even bet they were the ones who pushed the government too far.
They're protesting government spending cuts and less social welfare money due to increased retirement age and etc.I actually don't know what they are protesting. The closest explanation I've found is some vague reference to how the corrupt government has been mishandling things for 30 years and so the people should not pay for its misdeeds. This pretends that they were not part of the corruption and knew about it, which of course they did. I honestly have no idea what these people are protesting against, in which world their protest makes logical sense.
OK I know WHAT they are protesting but I'm not sure WHY they are protesting it. The math is very elementary, a typical child of about 7 years old could understand it. What exactly do they think the government can do if not this? If the package doesn't kick in and they default on debt then they'll really be austere.They're protesting government spending cuts and less social welfare money due to increased retirement age and etc.
Whichever party wins the election will have to impose spending cuts of such severity that they will find themselves exiled from power for a generation, the governor of the Bank of England has reportedly claimed.
according to the Treasury's forecasts, the United Kingdom will nearly double its indebtedness [by 2014-2015] from £776 billion (in 2009-10) to £1.4 trillion
Responsibilities pegged to inflation do not benefit but others do, like bonds sold, so if the dollar loses half its value yes you have to now pay out twice social security but the trillion you owe China is now worth half as much. Obviously any future debt will only be purchased at a premium, though, as they will build their purchases in with the anticipation you will devalue things.
Greece passed its austerity measure. Stock market is not impressed now, bordering on panic, down 250 now was 300+ a few minutes ago.
how would the obama explain the liberal crisis in greece??
If Greece defaults then the Greek citizens will fall back on their last line of defense, holding their breath until they get their way or collectively turn blue.OK I know WHAT they are protesting but I'm not sure WHY they are protesting it. The math is very elementary, a typical child of about 7 years old could understand it. What exactly do they think the government can do if not this? If the package doesn't kick in and they default on debt then they'll really be austere.
I already know the EU has only a weak central government and people don't even like to call it a government. But it is a government. And I know not all EU members are in the EU monetary bloc. Debt is not held by the EU central government but it will be. The EU central government will expand and become more powerful to deal with this situation. I'm not saying that they will gain all sorts of government power. But they will gain substantial power concerning money issues for the members of the EU monetary union.
Debt has to be defaulted on eventually in economies that use a fiduciary money system. It's a mathematical certainty.
If Greece defaults then the Greek citizens will fall back on their last line of defense, holding their breath until they get their way or collectively turn blue.
I just think it's great that my government retirement check will be delayed until at least age 67 yet my tax money is going to Greece to help them retire at 63 - and THEY are the ones rioting?
Isn't he directly supporting, via tax dollars, anything the US government does? Without his tax dollars they do not exist; they are under his employ paid for by his (and others') tax dollars, so if they have a part of a bailout package to Greece then his tax dollars do to a degree support it.You're not directly supporting Greece through your tax dollars.
Isn't he directly supporting, via tax dollars, anything the US government does? Without his tax dollars they do not exist; they are under his employ paid for by his (and others') tax dollars, so if they have a part of a bailout package to Greece then his tax dollars do to a degree support it.
OK I know WHAT they are protesting but I'm not sure WHY they are protesting it. The math is very elementary, a typical child of about 7 years old could understand it. What exactly do they think the government can do if not this? If the package doesn't kick in and they default on debt then they'll really be austere.