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Oh, suddenly this debate is no longer about debt? Interesting.
by Katrin on Tue Feb 14th, 2012 at 06:17:42 PM EST
[ Parent ]
David Graeber would love this exchange.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Feb 14th, 2012 at 06:18:14 PM EST
[ Parent ]
debt and deficit are 2 different things.

Very early on quite a few European politicians noted that Greek debt in and by itself was not the major problem.  

Greece's complete inability to balance its budget even with much reduced debt, though, certainly was. (and is)

by cris0 on Tue Feb 14th, 2012 at 07:33:05 PM EST
[ Parent ]
Balancing the government budget is stupid.

The government is the employer of last resort. This implies that the government has to be able to print and spend money at will.

Why is this difficult to understand?

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Feb 14th, 2012 at 07:36:28 PM EST
[ Parent ]
sigh

since everybody is going to jump on that:

s/balance/curb to a level appropriate for its growth/

by cris0 on Tue Feb 14th, 2012 at 07:37:30 PM EST
[ Parent ]
Greece's deficit was perfectly appropriate for its growth path. Probably a bit too small, actually, considering the mercantilist attack Germany and the Netherlands were subjecting it to.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Feb 14th, 2012 at 08:14:25 PM EST
[ Parent ]
Much reduced debt? What? Debt is up.
by Upstate NY on Tue Feb 14th, 2012 at 10:20:07 PM EST
[ Parent ]

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