"Austerity" now a dirty word in Europe

Well, that's the very same elsewhere in Europe. (And I truly doubt that a station could survive just with one pump.)

I bet, they are laughing about Finn, too.

All of which, of course, has nothing to do with austerity programs in Europe. Walter, Hollande is supposed to go to Berlin to make nice with Merkel, in aid of renegotiating the austerity treaty. Merkel has said that she won't negotiate--and as Thomas points out, that is in itself a negotiating position. What are the papers in Germany saying about this?

Only Finn could travel to a strange city, get ripped off by a cabbie, then boast about it.

As Walter has already informed us, there's elections in Germany today. I suspect Merkel will wait to see how well her party is doing in the polls before doing anything.

She's a politician, and political survival comes first.



http://uk.reuters.com/article/2012/05/13/uk-germany-election-nrw-idUKBRE84C06C20120513

Unlike the Condems in the UK who have three years left Merkel is up for election next year. Hollande could provide the excuse for backtracking on austerity.

I doubt that the conservatives can leave the opposition in our state and win today - thus, nothing would change.
(Finished my shift in the polling station - back to count the votes in three hours ....)

Austerity programs by government is an oxymoron. The conservatives complain that Obama isn't "creating" enough jobs while the conservatives put all their effort into destroying government jobs. They create the handicap to increase jobs, then complain there aren't enough. There's no cure for.....

Arianna Huffington has an interesting opinion piece in today's NYT Sunday Review. (I'm afraid you'll have to search it out. My copy is lying on the kitchen table).

In it she very passionately bemoans the impact of harsh austerity measure on the youth of Greece whom, she argues, are not to blame for blackhole that is their nation's economy. I see her point but I suspect she includes among the "Youth of Greece" those who actually have had some part to play (ie university students).

Nevertheless, the real possibility of a generation or more of Greek children being stunted by this particular brand of economic medicine does seem unfair.

Her solution?

Greece should leave the EU and abandon the eruo, default on all of it's debt and begin anew.

I have to say this makes sense to me.

It's crazy to expect those who have and continue to financially prop Greece up to voluntarily forgive her indebtedness, but then reach back into their coffers and start the vicious cycle all over again on the illusory promise that the Greeks have learned their lesson. Clearly they have not, and they won't until they suffer the consequence of their economic folly and irresponsibility in a manner which can't so easily be blamed on third parties.

It would be a welcome indicator of the seriousness of their intent if they abandoned all of the economic crutches of the EU before they defaulted, but the result will be the same. They'll be on their own (or at least much more so than are now).

Obviously the immediate result will be economic hardship in line with what they are dealing with now. Huffington acknowledges this, although she makes too light of it by citing the Argentina example and it's "few short months of economic crisis." If the Greeks take this dramatic step with the assumption that it will be a relatively pain free economic gimmick, then they will have revealed that their irresponsibilty hasn't even been dented by their current crisis.

Of course it's success will depend very heavily on two internal outcomes that are by no means assured:

1) That the Youth of Greece, whose future is at stake, if not seizing the reigns of power, take a firm joint grip upon them
2) That the Youth of Greece recognize how the folly of their elders got them into this situation in the first place and not only demand but push through sweeping reforms.

If and when Greece revitalizes it's economy (which will require remodeling its society to a fair degree as well) so that external capitalists see it's promise, external capital will return. It's not assured, but it's certainly possible, and a good sign of it working will be a Youth driven restructuring that requires the folks who got them into the mess in the first place to bear a fair share of the pain required to get them out.

Your argument is based on two false assertions:

1) An increase in government jobs is a viable solution to economic stagnation and resulting unemployment

2) That the people who work for the government even think it is their responsibility to "create" private sector jobs, let alone have the actual ability to do so.

As you are so proud of saying though: You can't cure stupid.

What would be Greece's economic position outside the European Union? I mean, leaving the Euro-zone might certainly be a posibily (which an unknown outcome), but why leaving the EU totally?

I know, the Communists and the extreme Greek Left has such a position, but why do you favour it?

(Besides that: did A. Huffington really write such? At least not in the online version I've been able to read [May 12, 2012, Greek Tragedy])

You must refer to a different article then that I mentioned, Finn.
Sorry.

Greece leaving the EU doesn't seem a particularly well thought out option either. Leaving the Eurozone is one thing, but I can't see any benefit in leaving the EU at all.

If they really wanted to do so, there problems would be greater than now since nearly 80% of their export is to the EU.

I think this is just right wing American voodoo economics talking. The only people who would benefit would be the very wealthy speculators on Wall Street.

One of them may buy a kebab, so there would be some trickle down.

Those non-Europeans , who simply value business and money. Indeed.

I think they're just pissed off not everyone has bought their bullshit.

Merkel's party just got slammed in North Rhine-Westphalia, blamed in large part on the austerity program championed by Merkel. This was the CDU's worst showing in NRW since WW2.


http://www.dw.de/dw/article/0,,15947484,00.html

It was the worst showing of the CDU here, agreed.
But: it was a state election, we had had a Social-Democrat/Green minority government before, our PM worked very well ... and she was confirmed in her job. Most people know that "the austerity program championed by Merkle" is a federal thing.

Are you sure?


http://www.reuters.com/article/2012/05/13/us-germany-election-nrw-result-idUSBRE84C09G20120513

As opposed to Eruopeans who are more concerned with the spiritual rewards?

Walter, do you know what the Spiegel's "Sonntagsfrage" poll is currently saying? I would imagine that this is the best way of screening out NRW-specific trends.