the way the EURO is pegged with Greece will not work. Germany will also be dragged down the IMF will go broke which is 17% U.S. funded so we will go down too... Greece must leave the EURO now! May 12 (Bloomberg) -- New York University professor Nouriel Roubini said Greece and other âlaggardsâ in the euro area may be forced to abandon the common currency in the next few years to spur their economies. A âreal depreciationâ in the euro is needed to restore competitiveness in nations including Spain, Portugal and Italy, he said in an interview on Bloomberg Television today. The euro will remain the currency for a smaller number of countries that have âstronger fiscal and economic fundamentals,â Roubini said. The European Union and International Monetary Fund last week approved a 110 billion-euro ($139 billion) lifeline for Greece to arrest the countryâs fiscal crisis and stop the turmoil from spreading. Europeâs debt woes may push it into a âdouble-dipâ recession, growth in advanced nations will be âanemicâ and Chinaâs overheating economy risks a slowdown, Roubini said, adding that Greece may still eventually need to restructure its debt. âThe challenge of reducing a budget deficit from 13 percent to 3 percent in Greece looks to me like mission impossible,â Roubini said. âI would not even rule out in the next few years one or more of these laggards of the euro zone might be forced to exit the monetary union.â
If that logic holds true, then we could fix the dollar by taking California out and letting them print their own money. Hey, if California was on its own, it would be the 8th largest economy in the world. Basically as big as India, Taiwan, and Hong Kong COMBINED! Yeah...not a bad idea...let California print its own money! We can call it the "CALI"
there are some advantages of printing money. the main one is repayment. also it would ease the pension burden.
for how long?look at the latin countries during the 20thy century. if u don't take the hard measures like admitting you are broke and break the obligations then it is an endless cycle of inflation as the government tries to fool the people.
i think the main reason there is an continual inflationary gap is because. countries are not as productive as they claim. they borrow money against assets they don't really have then when it comes to repayment they cannot meet the required amounts and then become dependent on debt or inflating to support their cost of living. if the inflation was used to pay off debt it could help. the sad fact is they use the inflated money to maintain the quality of life. the government will use it to maintain power. inflation is useful to pay off debt if the inflated money is sent in the right direction. you are correct inflation to pay pension obligations and wealfare is not good, this wil bring america down. i have to say the states could not of had a worse government at a worse time.
There are advantages to using heroin too. It makes you happy and seemingly makes all your problems go away. But in the end it will either kill you, or make you wish you were dead from the withdrawal. =) Printing money just keeps the party going a little longer, but you need more and more of it to get any result. Just like heroin, you need more and more to get the same effect. Time for the world to stop being a junkie, I think. Anyone who owns gold & silver will not go through the withdrawal pains. Everyone else will which is sad because the poorest people will suffer the worst.
Parts of Cali are being repatriated by Mexicans. Certainly at some point it will be common sense to return the mexican-populated areas to mexico. As for the Euro: How long will the Germans be willing to play patsy? They need to cut the Parasites lose and let them inflate their way out of their own problems.
You can read Rogers take on the IMF here: Abolish the IFM and the World Bank! http://www.beeland.com/abolish_the_ifm_and_the_world_ba.htm (I've had some acces problems with the safety of this site so be sure you have anti virus before you enter, it seems fixed now but still...)