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LeoMarr posted:So back to austerity. why did austerity work for Germany? Germany chopping $30 billion a year out of a budget of $1.6 trillion is poo poo all. It would be like asking the Greek government to cut $3 billion. But they're not. Interest on Greek debt was 20 billion Euro in 2014. That's like Germany having to cut $300 Billion per year which would cut 0.75% out of their GDP straight off the top, not counting secondary effects. Germany's real foray into capital-A austerity was in the 1920s and it precipitated the rise of a particular mustached Austrian man you may have heard of.
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Jul 16, 2015 01:40
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LeoMarr posted:so Greece is going to fall into a fascist pariah state because the last time Austerity got this bad hitler came to power. Destabilize people's lives enough and they'll fall behind the first strong man rear end in a top hat who will guarantee they can walk down the street safely and not starve.
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Jul 16, 2015 01:53
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KingFisher posted:4. The Greek was able to trick the EU/EZ into letting them in. 4. With a nod and a wink, the EU/EZ let Greece in, knowing full well their finances weren't what they said they were. KingFisher posted:11. The Greek took the money but did not make the changes, so things got worse, another set of loans was needed, these loans were even better as they let the Greek lower his rates and extend the term on his old credit card bills. 11. Greece took the money and passed three austerity packaged in 2010, satisfying the EU/EZ requirements. It passed further austerity packages at it's creditors behest in June, 2011, February and October 2012, and July of 2013. A bit of reality kind of changes the tone there, a little, doesn't it? A bit less "Greece is bad with money and needs to pay up" and more "there are systemic problems in the EU/EZ and everyone is at fault".
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Jul 20, 2015 00:17
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KingFisher posted:access to cheap credit was the cause of the crisis? The EU/EZ wouldn't be in this condition if they were a proper monetary union rather than just a common currency; it's caused by structural problems in the EU/EZ rather than the retarded "Greek household budget" narrative that's being batted around. The problem that's happening with Greece was always going to happen to someone, Greece just got to the bottom first.
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Jul 20, 2015 05:00
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KingFisher posted:So explain to me how the "structural problems" of the EU/EZ forced the greek to borrow all that money? The lack of direct wealth transfer mechanisms between EU/EZ nations, aka a proper monetary union, instead of just a common currency. This is not that loving complicated.
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Jul 20, 2015 05:13
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