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From a confidence perspective it doesn't matter if the law passes or not. The taboo is broken. Pandora's box has  been opened. The nuclear option has been seriously suggested. Eurozone deposits are not secure.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Sun Mar 17th, 2013 at 10:38:46 AM EST
[ Parent ]
Yep.

Be nice to America. Or we'll bring democracy to your country.
by Drew J Jones (pedobear@pennstatefootball.com) on Sun Mar 17th, 2013 at 10:51:47 AM EST
[ Parent ]
To me this seems true - it seems an obviously insane action. Why can't the collected finance ministers of the Eurozone see it?
by Metatone (metatone [a|t] gmail (dot) com) on Sun Mar 17th, 2013 at 12:11:52 PM EST
[ Parent ]
Because Draghi tells them there's no alternative and he's the Archeconomist.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Sun Mar 17th, 2013 at 12:48:11 PM EST
[ Parent ]
So Draghi is insane now?
I'd been under the impression that he was steeped in Seriousness, but occasionally made contact with reality...
by Metatone (metatone [a|t] gmail (dot) com) on Sun Mar 17th, 2013 at 12:54:43 PM EST
[ Parent ]
Draghi's the one that spoke at the Council on Thursday evening.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Sun Mar 17th, 2013 at 12:55:34 PM EST
[ Parent ]
Thus Spoke Draghithustra: Euro area economic situation and the foundations for growth (slides from the presentation): Presentation by Mario Draghi, President of the ECB, at the Euro Summit, Brussels,14 March 2013.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Sun Mar 17th, 2013 at 01:09:59 PM EST
[ Parent ]
And that's all he really had to say:
Conclusions
  1. Review of product and labour markets to see whether they are compatible with participation in monetary union
  2. Reform contracts for countries with pressing competitiveness problems.
  3. Full implementation of Single Market legislation
Oh, and "LTRO and OMT worked" (which they did).

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Sun Mar 17th, 2013 at 01:13:51 PM EST
[ Parent ]
Oh, and
Draghi Doctrine photo DraghiDoctrine20130314_zps901232e9.png

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Sun Mar 17th, 2013 at 01:19:18 PM EST
[ Parent ]
Note that "supportive monetary policy" is not supportive of fiscal policy. It's supportive by keeping inflation down.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Sun Mar 17th, 2013 at 01:21:32 PM EST
[ Parent ]
being, of course, wage inflation (asset inflation seems much less worrisome to these guys - although to be scrupulously fair to the ECB, they were the only ones to worry about in the 05-07 period - if not to the point of doing much about it)

Wind power
by Jerome a Paris (etg@eurotrib.com) on Sun Mar 17th, 2013 at 01:24:24 PM EST
[ Parent ]
Belgians, Italian, Austrians and the French are richer than the Germans - in the case of the French, the gap is surprisingly large in favour of France, as a result of rising wages, he writes, which are now dogging the country's competitiveness.

And there we see that high median wealth is damaging to 'competitiveness.'

Who'd a thunk it?

by ThatBritGuy (thatbritguy (at) googlemail.com) on Mon Mar 18th, 2013 at 07:22:45 AM EST
[ Parent ]
The solution to Europe's economic woes is to make us all as poor as Germans!

No wonder they're trying to hush it up.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Mon Mar 18th, 2013 at 08:42:37 AM EST
[ Parent ]
until someone tells the Germans, it's the EU or the ECB (and by then it'll be too late, all the damage will have been done)

Wind power
by Jerome a Paris (etg@eurotrib.com) on Sun Mar 17th, 2013 at 12:17:20 PM EST
[ Parent ]
They're not going to listen until the continent lies in ruin.

More baffling is why no country has yet had enough of listening to them to tell them to pound sand.  Four years this has gone on, and it's only gotten worse.  At some point, surely some government has to wake up and say, "Fuck this shit, we're out."

Be nice to America. Or we'll bring democracy to your country.

by Drew J Jones (pedobear@pennstatefootball.com) on Sun Mar 17th, 2013 at 12:33:56 PM EST
[ Parent ]
At some point, surely some government has to wake up and say, "Fuck this shit, we're out."
Allegedly that's what Schäuble wanted: "fuck this shit, either you tax deposits or you're out".

Comprador elites don't want out. At least not before they have had a chance to send their money to Düsseldorf.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS

by Migeru (migeru at eurotrib dot com) on Sun Mar 17th, 2013 at 12:38:36 PM EST
[ Parent ]
Well, also, Cyprus is the ideal case for Schäuble's blackmail - a small real economy, currently overbalanced by a financial sector that exists in part as a way-station into the the Eurozone...
by Metatone (metatone [a|t] gmail (dot) com) on Sun Mar 17th, 2013 at 12:46:12 PM EST
[ Parent ]
Right, but at some point surely someone ought to call his bluff.

Be nice to America. Or we'll bring democracy to your country.
by Drew J Jones (pedobear@pennstatefootball.com) on Sun Mar 17th, 2013 at 12:53:08 PM EST
[ Parent ]
You need a primary government surplus, and no psychological hangups about being inadequately European.

Therefore, it has to be Italy or France.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS

by Migeru (migeru at eurotrib dot com) on Sun Mar 17th, 2013 at 12:54:50 PM EST
[ Parent ]
(as the only one with a surplus)

But neither has a rightwing government right now, so there's going to be a hang up about being "serious" (and you see the permanent pressure by the establishment to explain that whatever they're doing not serious enough).

(I'd be willing to bet that Harz IV, praised by all serious people today, was seen as much too weak back then...

Wind power

by Jerome a Paris (etg@eurotrib.com) on Sun Mar 17th, 2013 at 01:08:32 PM EST
[ Parent ]
So we're waiting for Berlusconi to win an election and ride to the rescue?

Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Sun Mar 17th, 2013 at 02:27:29 PM EST
[ Parent ]
This is the most plausible thing in the whole thread!
by paving on Mon Mar 18th, 2013 at 11:16:15 PM EST
[ Parent ]

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