Debt Crisis and EU Response

[Bluelicious]

[Che -Guevara]

Th European project is hard to sustain. It was meant to reign in Germany but it is Germany that's controlling things. From monetary perspective, it is hard to formulate a sound financial policy without political integration, in other words the United States of Europe is needed. What you have now disparate countries that are unwilling to give up their sovereignty and a for good reason, no country wants to surrender power and the two world wars left a bitter taste in some countries'. People don't forget the past. Just ask the Serbs or Greeks who compare Merkel to Hitler, a cheap considering it is German tax payers that bailing out Tax dodging Greeks.

 

On another note, I wonder how African countries would pay back Chinese loans, something else that's brewing below the surface.

[galbeedi]

The European economy is in stagnation . The new economic stimulus term is called debt financing. Billions are poured to lift the economy with almost zero interest rates. No one knows how long this debt financing economy will last.

 

In order to sell her industrial and technological products, Germany is the one who encouraged the wide opening of Euro zone. How can the poor Greeks and rich Germans would be members of the same club. It is like two guys, one earning $100,000, and the other earning $25,000. They both go together and party at the same country club. The poor guy already spent his twenty five while the rich guy still have money to spend. Rather than tell him to go home and earn more money, he encourages him to borrow another 25 or even fifty grand to play in the big leagues. When the party is over , both of them could be broke , but one is in deep debt that he must pay back

 

Now in order to pay the debt , he must give up 80% of his income to pay back his creditors, and he must change his lifestyle. Imagine a whole nation in that situation. Europe need more activity, more people, especially new immigrants to replace it's aging population to spur economic growth. If they open their gates wide, their character will change dramatically, if they keep the status qua , they will keep stagnating for ever.

 

Chinese debt in Africa is huge. The Chinese communists know that Africans will never pay their debts, so they already planned ahead. In Angola, Sudan and Zambia, they getting paid with row material. They did build 2000 km rail way for ANGOLA and they got paid in millions of barrels of oil, same with Sudan and others.

 

anyway, Germany and Turkey will be the big economic powers of central and eastern Europe. U.K and Nordic countries will be fine, but basket cases of Greece, Portugal, Hungary, Balkans and others will be beggars who would either kicked out of Euro Zone or swallowed by the bigger sharks.

 

 

[Che -Guevara]

Greece needs to go back to the drachma. The repayment as it stands is unrealistic; IMF has admitted as much. Any loan restructuring would have to include shaving off the some of loans or extending maturity date into decades and at lower interest rate. Anything else is just avoiding the inevitable.

 

Galbeedi, some African countries are not endowed with many natural resources or have squandered the little they have.

 

[Bluelicious]

Some people seem to be ignorant and clueless as to how countries get in debt. How hard can it be to grasp that spending more money than you get in creates debts and that debt continues to grow if you borrow money you can't pay back. I don't wanna pay tax to help these on purposely broke countries. There seems to be no ending about their brokeness. I'm sick and tired of corrupt politicians. Real talk of this man if only there was more people like him in the politics.