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Just like to note for clarification that "they" are not a consistent group.

German workers has by way of slashing the social safety net been convinced not to fight for their fare share of production increases. (If they had more would have been consumed, leading to imports and more even trade.)

This surplus has instead been claimed by German owners of industries and gambled through the financial system.

The German financial system has then loaned the money back to the deficit countries, unaware or not caring about how unsustainable the total is.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Tue May 31st, 2011 at 04:44:37 PM EST
[ Parent ]
If instead of excess German capital going to Greek bonds, Irish real-estate banking, US mortgage backed bonds and so on, the money had been paid out to German workers for vacations in the South, the world economy would have been on a more solid footing and German workers would have been happier.
by rootless2 on Tue May 31st, 2011 at 06:37:09 PM EST
[ Parent ]
Yes but if everyone was happy with their lot, why would we need banks? People wouldn't have to borrow.  We need pain and suffering to make the system work.  How else can we extract "value" from the have nots to make sure the have mores have more.  Isn't that the point of economics?

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Tue May 31st, 2011 at 07:30:44 PM EST
[ Parent ]
the problem is not so much the euro as the robber baron policies of all of our elites, including the Germans.

But the Germans have been especially effective at pushing the blame away from them and towards Southern Europeans and making the average Germans feel self-righteous about their efforts instead of furious at having being ripped off by their bosses and banks.

Wind power

by Jerome a Paris (etg@eurotrib.com) on Thu Jun 2nd, 2011 at 08:06:23 AM EST
[ Parent ]
The design of the Euro, like the gold standard before it, encourages mercantilist inflation policies by allowing the mercantilists to externalise the unemployment caused by their irresponsible policy.

You can't design a system that favours irresponsible policy and then claim that the only problem is the stupidity of the people who implement that policy.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Thu Jun 2nd, 2011 at 10:59:53 AM EST
[ Parent ]
 

  "You can't design a system that favours irresponsible policy and then claim that the only problem is the stupidity of the people who implement that policy."

 

  Your point, which I grant and agree with, is that one ought not do that.

    But, unfortunately, "you can do that."  And that is, to greatly over-simplify things, much of the trouble today.  You can do that and do it over and over and over again.  We are perhaps going to discover whether or not this state of affairs can last much longer.

"In such an environment it is not surprising that the ills of technology should seem curable only through the application of more technology..." John W Aldridge

by proximity1 on Thu Jun 2nd, 2011 at 11:28:28 AM EST
[ Parent ]
A swedish kind of death:
The German financial system has then loaned the money back to the deficit countries,

all the while patting themselves on the humanitarian back for 'developmental aid'. who can deny the new businesses and suv sales? GROWTH has arrived!

send in the clowns.

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty

by melo (melometa4(at)gmail.com) on Wed Jun 1st, 2011 at 02:03:57 PM EST
[ Parent ]

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