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Among professionals that is indeed the legal principle.

Except when it comes to government bonds, apparently. You're not allowed to tell the buyer to fuck off and die on those, are you?

But this nowhere in the eurozone includes Germany doesn't it?

It does.

Believing in fairy tales is not an excuse for murder.

And let's be perfectly fucking clear here: What Mr. Schauble is doing is murder. Clear, cold-blooded murder. Before this crisis is over, he and his friends will have murdered tens of thousands of Greeks and God only knows how many Spaniards, Irish and Italians.

Major industrial depressions are not a fucking game that you get to play over drinks in the country club.

Hold on. is there a single, I repeat a single european government proposing that? You see the problem?

No, I do not see any problem with attacking the most stridently insane country of the lot.

When Germany starts acting less insane than the Netherlands, I will happily begin going after the Netherlands. Until and unless that happens, however, you are making pathetic excuses.

>I am noting that under current treaty arrangements they have no power to overrule an obstructionist German position.<

Of course they can. Theres is no German veto not shared with any other Eu country.

My emphasis.

See the problem here?

In every majority voting case, there is a possibility to out-vote Germany. And at the ECB, the center of your complaints, is is really easy to outvote two german members on the council.

And every time they do that, the Bundesbank immediately goes to Frankfurter Allgemeine BildZeitung and shrieks and whines about how unfair everybody is treating Germany until it stops.

>The US Fed/Treasury are doing an almost reasonable job of fighting their recession.<

Nonsense. The stimulus was much to small. But even you can't refashion republicans or moderate democrats into german agents, so you rather paint a rosy picture.

The stimulus was much too small, certainly.

But I note that no American state has seen 34 % drops in government outlays, 15 % drops in nominal wages and unemployment percentages in the high 20s. Even after you strip out all the lies the Americans put in their statistics, they're still outperforming the Troika by five to ten percentage points on all important measures.

>I am not postulating a German conspiracy. I am noting that Germany has been peddling toxic economic Lysenkoism to the rest of Europe for four solid decades now.<

In other words, you are postulating a conspiracy. And I thought blaming les anglo saxons is simple minded.

I am blaming the Hayekians. I am noting that Germany is the foremost peddler of the Hayekian cancer in Europe today.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Feb 18th, 2012 at 12:18:03 PM EST
[ Parent ]
>Except when it comes to government bonds, apparently. You're not allowed to tell the buyer to fuck off and die on those, are you?<

As far as I understand the legal situation, it is not any different. But you don't really want to hear that, do you?

 >It does.

 Believing in fairy tales is not an excuse for murder.<

And hyperbole doesn't replace an argument.

 >No, I do not see any problem with attacking the most stridently insane country of the lot.

 When Germany starts acting less insane than the Netherlands, I will happily begin going after the Netherlands.<

Ad calendas graecas or so.

 >My emphasis.

 See the problem here?<

No.

 >And every time they do that, the Bundesbank immediately goes to Frankfurter Allgemeine BildZeitung and shrieks and whines about how unfair everybody is treating Germany until it stops.<

But that, like the two resignations, is actually a sign of weakness and waning influence.

 >The stimulus was much too small, certainly.

 But I note that no American state has seen 34 % drops in government outlays, 15 % drops in nominal wages and unemployment percentages in the high 20s.<

As far as I understand the states and local governments have almost offset the federal stimulus with their balanced budgets requirements. and the resulting fiscal austerity.

by IM on Sat Feb 18th, 2012 at 12:36:45 PM EST
[ Parent ]
Believing in fairy tales is not an excuse for murder.

And hyperbole doesn't replace an argument.

The closest point of comparison to what the Troika is inflicting on Greece is Russia under Yeltsin.

That experience killed roughly 1 % of the Russian population. If Greece performs similarly, and there is no, a priori, any reason it should not, you're looking at somewhere on the order of fifty thousand preventable deaths.

Yeah, I call that murder.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Feb 18th, 2012 at 12:42:35 PM EST
[ Parent ]
As far as I understand the [US] states and local governments have almost offset the federal stimulus with their balanced budgets requirements. and the resulting fiscal austerity.

And yet they are still doing measurably better than the Troika.

In other words, the Troika confidence fairie performs worse than a placebo stimulus.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Feb 18th, 2012 at 12:45:30 PM EST
[ Parent ]
Because of - may I mention that once again - automatic stabilizers. The federal spending on Social security, medicare and medicaid keeps places like Nevada afloat.
by IM on Sat Feb 18th, 2012 at 12:53:24 PM EST
[ Parent ]
Automatic stabilisers which Germany is busy dismantling in Greece.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Feb 18th, 2012 at 01:57:03 PM EST
[ Parent ]
Let me remind you that Greece was running deficits even before the crisis hit and the automatic stabilizers kicked in. Look, if you want to run Keynesian policy, either through automatic stabilizers or stimulus programs, you need to have at least semi-sound public finances before the crisis hits. And after the crisis, you need to pay down debt, so you have a space financial space available to borrow heavily during the next crisis.

Sadly, politicians far prefer spending during bad times than they enjoy saving during good times (try to convince the Swabian housewifes that taxes must rise during good times to increase the size of the budget surplus), which is likely why Keynesians has gotten such a bad reputation.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Sat Feb 18th, 2012 at 02:24:43 PM EST
[ Parent ]
That's only true under a commodity standard or pegged ForEx policy.

It is true that ideally you would attempt to deter inflation whenever this is consistent with full employment. But under a floating FX regime and absent atavistic commodity pegs, nothing about having spent yesteryear prevents you from spending this year.

Yes, spending yesteryear may have created inflation. But it makes no sense to encourage deflation today just because because there was inflation yesterday. For the same reason it makes no sense to shoot a man in the back after he has been shot in the front, on the theory that "the average bullet velocity through his chest will be zero."

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Feb 18th, 2012 at 03:39:48 PM EST
[ Parent ]

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