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Subject: Should Germany drop the Euro?!
Discussion with you is impossible. You have simplified black&white view on matter and you avoid answering key points because when you try, it usually only shows your ignorance like with this current account balance graph you posted. I explained but you are not able to understand what it really shows: increased volumes of import/export with relatively stable coverage of import by export. Your graph mostly showed that those economies grew in that period. That's it.
Don't talk of me, please.
For the rest, just lol.
And of course inflation is good and necessary
WRONG: inflation is bad, but sometimes you need it to avoid a worst thing. Failure.
but it needs to be stable at 2-4% and anyway, it is always incorporated within the interest rates.WRONG: when you need inflaction you'll need it the amount you need ..
You think we are in a normal situation, we are no more, is useless to discuss with someone that doesn't even know we're payng 6.75% on our bond.. spain pays right now around 7%..
Or do you think that you can have a 5% interest with a 10% inflation?
we had for sure 2 times this thing after WWII.. only in Italy.
Would you ever loan money under such conditions?
LOL, you don't get it. What happen if I have a 20% inflaction? My debts are 20% less.. (to do it simple) my exportation increase, my account blance grows, I need nomore the same amount of lended money.
We have a saying in Croatia: "It's easy to beat the thorn bush with somebody else's penis."
yeah. It's right!
Just keep believing what you read in newspaper, right now Greece defaults and euro exit is nomore avoidable. 6 months ago I read eveything on this forum, now facts talks. We spent a lot of billions to save something, destroyed their society, and still got nothing (nor we, banks had something .. )
Don't talk of me, please.
For the rest, just lol.
And of course inflation is good and necessary
WRONG: inflation is bad, but sometimes you need it to avoid a worst thing. Failure.
but it needs to be stable at 2-4% and anyway, it is always incorporated within the interest rates.WRONG: when you need inflaction you'll need it the amount you need ..
You think we are in a normal situation, we are no more, is useless to discuss with someone that doesn't even know we're payng 6.75% on our bond.. spain pays right now around 7%..
Or do you think that you can have a 5% interest with a 10% inflation?
we had for sure 2 times this thing after WWII.. only in Italy.
Would you ever loan money under such conditions?
LOL, you don't get it. What happen if I have a 20% inflaction? My debts are 20% less.. (to do it simple) my exportation increase, my account blance grows, I need nomore the same amount of lended money.
We have a saying in Croatia: "It's easy to beat the thorn bush with somebody else's penis."
yeah. It's right!
Just keep believing what you read in newspaper, right now Greece defaults and euro exit is nomore avoidable. 6 months ago I read eveything on this forum, now facts talks. We spent a lot of billions to save something, destroyed their society, and still got nothing (nor we, banks had something .. )
inflation is bad, but sometimes you need it to avoid a worst thing. Failure.
Nonsense. Inflation of 3% is a quite natural, normal and good process. Economies use nominal growth as a filter. When prices grow, that only means that people also need to fight for their income to grow. When you don't have this "carrot", then people are inclined to simply sit on and protect the income that they already have. Inflation is an economical stimulus for all market participants. Without inflation unambitious people would never try to get a raise of their salary. With inflation, everybody knows that they need to catch at least nominal growth and this is motivating. Inflation is a matter of psychology. Most economic issues are. That's why economy is a social science because the way things work is a reflection of human psychology.
You think we are in a normal situation, we are no more, is useless to discuss with someone that doesn't even know we're payng 6.75% on our bond.. spain pays right now around 7%..
I know that. What made you think I don't?
And of course it's not a normal situation. You have consumed more than you were earning and have accumulated too large debt and by that you have killed your negotiation position. And in economy negotiation power is everything. You probably know the golden rule of economy: "He who has gold, sets the rules." ;)
we had for sure 2 times this thing after WWII.. only in Italy.
Well, do it again then. All you need to do is find such lendors. ;) Again: negotiation power is everything.
LOL, you don't get it. What happen if I have a 20% inflation? My debts are 20% less.. (to do it simple) my exportation increase, my account blance grows, I need nomore the same amount of lended money.
But you are not alone in this boat any more. You are now part of eurozone and what you want only means a transfer of your past excessive consumption to other members which they surely won't accept. I mean, why would they? You were spending before you earned and now you have to earn before you spend. That's it. You had your GDP growing on this unearned consumption and now you will have your bubble burst and GDP down to realistic level and you will have to amortise shocks that were caused by your bubble economy - unemployment, lower salaries etc. The problem is always in the structure of the economy and not in GDP, debt, inflation etc. These are only consequences of better or worse structure. You can't ask from consequences to amortise your structural problems that cause them in the fist place. And you can't print more money because you don't have monetary sovereignity any more. The only problem is that some crazy people thought that there could be fiscal sovereignity without the monetary and now reality shows how terribly insustainable that is. The only solution is to accept that you had much better economic times than you deserved and go back a few steps. Hey, this will stil be much better economic conditions than 30 years ago. We call this an economic crisis just because we compare it to the most recent period. ;)
Just keep believing what you read in newspaper, right now Greece defaults and euro exit is nomore avoidable. 6 months ago I read eveything on this forum, now facts talks. We spent a lot of billions to save something, destroyed their society, and still got nothing (nor we, banks had something .. )
If they exit euro, this will only make even more instability there. The whole socio-economic system will suffer even more shocks. And banks are not the enemy. The governments are not the enemy. Even when they're corrupted, they are stil the necessary evil to say the least. We are all in the same boat and currently we're in a lose-lose situation just because people are not willing to give up on their unsustainable rights. Fingerpointing and rebellions will only result in even more chaos.
Nonsense. Inflation of 3% is a quite natural, normal and good process. Economies use nominal growth as a filter. When prices grow, that only means that people also need to fight for their income to grow. When you don't have this "carrot", then people are inclined to simply sit on and protect the income that they already have. Inflation is an economical stimulus for all market participants. Without inflation unambitious people would never try to get a raise of their salary. With inflation, everybody knows that they need to catch at least nominal growth and this is motivating. Inflation is a matter of psychology. Most economic issues are. That's why economy is a social science because the way things work is a reflection of human psychology.
You think we are in a normal situation, we are no more, is useless to discuss with someone that doesn't even know we're payng 6.75% on our bond.. spain pays right now around 7%..
I know that. What made you think I don't?
And of course it's not a normal situation. You have consumed more than you were earning and have accumulated too large debt and by that you have killed your negotiation position. And in economy negotiation power is everything. You probably know the golden rule of economy: "He who has gold, sets the rules." ;)
we had for sure 2 times this thing after WWII.. only in Italy.
Well, do it again then. All you need to do is find such lendors. ;) Again: negotiation power is everything.
LOL, you don't get it. What happen if I have a 20% inflation? My debts are 20% less.. (to do it simple) my exportation increase, my account blance grows, I need nomore the same amount of lended money.
But you are not alone in this boat any more. You are now part of eurozone and what you want only means a transfer of your past excessive consumption to other members which they surely won't accept. I mean, why would they? You were spending before you earned and now you have to earn before you spend. That's it. You had your GDP growing on this unearned consumption and now you will have your bubble burst and GDP down to realistic level and you will have to amortise shocks that were caused by your bubble economy - unemployment, lower salaries etc. The problem is always in the structure of the economy and not in GDP, debt, inflation etc. These are only consequences of better or worse structure. You can't ask from consequences to amortise your structural problems that cause them in the fist place. And you can't print more money because you don't have monetary sovereignity any more. The only problem is that some crazy people thought that there could be fiscal sovereignity without the monetary and now reality shows how terribly insustainable that is. The only solution is to accept that you had much better economic times than you deserved and go back a few steps. Hey, this will stil be much better economic conditions than 30 years ago. We call this an economic crisis just because we compare it to the most recent period. ;)
Just keep believing what you read in newspaper, right now Greece defaults and euro exit is nomore avoidable. 6 months ago I read eveything on this forum, now facts talks. We spent a lot of billions to save something, destroyed their society, and still got nothing (nor we, banks had something .. )
If they exit euro, this will only make even more instability there. The whole socio-economic system will suffer even more shocks. And banks are not the enemy. The governments are not the enemy. Even when they're corrupted, they are stil the necessary evil to say the least. We are all in the same boat and currently we're in a lose-lose situation just because people are not willing to give up on their unsustainable rights. Fingerpointing and rebellions will only result in even more chaos.
Inflation of 3% is a quite natural, normal and good process.
..
You have consumed more than you were earning
I give up.
your faith in what they tell you is unbeliavable.
and you talk as if politic and economic were the same as 20 years ago:
world has changed!
And banks are not the enemy. The governments are not the enemy. Even when they're corrupted, they are stil the necessary evil to say the least. We are all in the same boat and currently we're in a lose-lose situation just because people are not willing to give up on their unsustainable rights.
Unsustainaible?
LOL.
You really don't have to talk about things you don't know.
..
You have consumed more than you were earning
I give up.
your faith in what they tell you is unbeliavable.
and you talk as if politic and economic were the same as 20 years ago:
world has changed!
And banks are not the enemy. The governments are not the enemy. Even when they're corrupted, they are stil the necessary evil to say the least. We are all in the same boat and currently we're in a lose-lose situation just because people are not willing to give up on their unsustainable rights.
Unsustainaible?
LOL.
You really don't have to talk about things you don't know.
I give up.
your faith in what they tell you is unbeliavable.
and you talk as if politic and economic were the same as 20 years ago:
world has changed!
Inflation of 2% is ideal to stimulate consumption and the economy in general. Really.
your faith in what they tell you is unbeliavable.
and you talk as if politic and economic were the same as 20 years ago:
world has changed!
Inflation of 2% is ideal to stimulate consumption and the economy in general. Really.
I give up.
your faith in what they tell you is unbeliavable.
Yeees, we have to listen to them for they are very powerful and eeevil. :P
Ah, that eternal struggle between us and them. Always useful to make a good revolution. ;)
Why won't they ever learn that they are 3rd person plural and that we are 1st person plural? They are not even you which is 2nd person plural and they want to be better than we are. No, no, no. Stand in line. We are number 1 and they are number 3. They should know that by now. :D
your faith in what they tell you is unbeliavable.
Yeees, we have to listen to them for they are very powerful and eeevil. :P
Ah, that eternal struggle between us and them. Always useful to make a good revolution. ;)
Why won't they ever learn that they are 3rd person plural and that we are 1st person plural? They are not even you which is 2nd person plural and they want to be better than we are. No, no, no. Stand in line. We are number 1 and they are number 3. They should know that by now. :D
Inflation of 2% is ideal to stimulate consumption and the economy in general
inflation at 2% is what Germany needs now.
but the same 2% is what is going to kill PIIGS.
In a normal scenario I would say you're right.
But right now we are dealing with country failure, depression, capital escaping, falling of house price and record unemployment (+ radical parties rising!)..
I'll say we probably must rewrite our priority!
Better to save ouself or to keep inflation at 2%?
(edited)
inflation at 2% is what Germany needs now.
but the same 2% is what is going to kill PIIGS.
In a normal scenario I would say you're right.
But right now we are dealing with country failure, depression, capital escaping, falling of house price and record unemployment (+ radical parties rising!)..
I'll say we probably must rewrite our priority!
Better to save ouself or to keep inflation at 2%?
(edited)
obviously you misunderstood.
But you intended to do it.
So again. Stop talkin' about me, and please, from now stop talking TO me in this 3d.
I don't deserve it.
(edited)
But you intended to do it.
So again. Stop talkin' about me, and please, from now stop talking TO me in this 3d.
I don't deserve it.
(edited)
obviously you misunderstood.
But you intended to do it.
So again. Stop talkin' about me, and please, from now stop talking TO me in this 3d.
I don't deserve it.
I am really sorry that you got offended but this was really not directed at you personally. It seems a lot gets lost in the translation. I was simply being sarcastic about your claim that I mindlessly believe in "everything they tell me". I don't even know who they are. Who are they? Who are these people that are mindcontrolling me? Do they have a name? :)
But you intended to do it.
So again. Stop talkin' about me, and please, from now stop talking TO me in this 3d.
I don't deserve it.
I am really sorry that you got offended but this was really not directed at you personally. It seems a lot gets lost in the translation. I was simply being sarcastic about your claim that I mindlessly believe in "everything they tell me". I don't even know who they are. Who are they? Who are these people that are mindcontrolling me? Do they have a name? :)