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What should Spain do when the refinancing of its debt can not find any willing buyer?

Demand ECB to buy it. What Spain needs is a nice 10% inflation that will destroy household debts and rise the value of wages. Then tax land hard to keep property prices low and domestic demand high.

by kjr63 on Wed Apr 28th, 2010 at 04:40:29 PM EST
Yes, basically the ECb is the path I see..

regarding inflation, I would say if Spain needs a 10% then to balance trade and demand in Europe, Germany inflation should grow at 15%. I do not think is possible.

Spain inflation at 4% and germany at 7% is possible.. if only German would increase demand by eliminating unemployment with massive government demand.

Sadly I do not see that one neither.. so it will be a long period of very low growth and high unemployment..to get rid of household debts that's the way the masters of the consensus want it to be.

Other than that.. how do you keep aggegrate demand high by taxing land hard?

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Thu Apr 29th, 2010 at 06:16:09 AM EST
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