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Excellent article by Münchau.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Mon Mar 5th, 2012 at 06:16:36 AM EST
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Read the comments... Münchau is a self-hating German turned Brit who lives in Brussels...

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Carrie (migeru at eurotrib dot com) on Mon Mar 5th, 2012 at 06:19:12 AM EST
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Yes. And an important point...
So, the two "Target 2" professors deserve credit for explaining the detailed mechanisms of how a monetary union functions in the presence of a broken banking sector.


There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Carrie (migeru at eurotrib dot com) on Mon Mar 5th, 2012 at 08:55:49 AM EST
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Zombie banks is what one get when one deny there is a need for write-downs and rights issues.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Mon Mar 5th, 2012 at 09:31:27 AM EST
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Ultimately those rights may need to be purchased by the state, which is impossible when states have their public debt debt maxed out, the Central Bank will not monetize, everyone thinks this is the gold standard, and cross-border actions are either an unacceptable fiscal transfer or an unacceptable foreign expropriation.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Carrie (migeru at eurotrib dot com) on Mon Mar 5th, 2012 at 10:02:38 AM EST
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As I've said before, sucks to be in the euro.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Mon Mar 5th, 2012 at 11:23:13 AM EST
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Recall that the story of the intra-EU imbalances was picked up from Sinn by Martin Wolf, though early on he correctly interpreted it as a bank run/flight to safety and later he shifted his focus to the "the ECB is funding deficit countries" narrative. (See here).

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Carrie (migeru at eurotrib dot com) on Mon Mar 5th, 2012 at 04:35:03 PM EST
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