sure we are, it wount last for ever being the only one on the list, who doesnt need the support of the CB... sooner or later, germany will need also help, if the rest of the world doesnt make it...
or what do you think?
all named can support their debts just for the middle term... expect of japan. they are allready one step further and in the next 10 years we will see the japaneas economy collapse. also it looks like the UK and USA follow japan on its way down. they also finance their debts by central bank money. - UK and USA wount collapse in the next 10 years, but propably within the next 20 years.
Germany still has a chance to support their debts on the long term. but only if the gov keeps on doing reforms and starts austerity.
Well you are a barrel of laughs today.
substitute ' any government' for 'labour' and you might have it. The IMF thinks we should be following Labour's policies now.if we were to elect Labour we could expect a bailout to be necessary within their term (just as France can expect a bailout under socialist Hollande).
No... what we need is less debt. It is very questionable whether even a sudden wave of wholly unreasonable confidence could fix matters now. The solution to a recession is to borrow and spend, but there are limits to how far this can go.What we do need is confidence.
All that happened in 2008 was debts which bankrupted the world banking system were taken on by governments which also could not afford them. This was the right thing to do, because the alternative was total collapse right then. We have had three more good years and are still working on it. The question remains whether there is any possible scenario which allows the problem to be resolved without total default.
The ECB has produced 1trillion euros of QE. Japan $700billion. US, cant find a figure, but $2 trillion, UK £300bn. Anyone have a figure on how much money has been lost as a consequence of the 2008 bank crash? Add a zero? two zeros? three zeros? What is the next unit up meaning 1000 trillion? Irrespective, the ECB needs to create another trillion of QE and start injecting it in sovereign (and very probably other) debt. I dont think the solution is for Germany to increase its debt, because it simply cannot finance the world and because essentially the problem is the total amount of everyone's debt. transferring it from one to another doesnt make it go away. Something is needed which makes it go away.
What has to happen is a paper transfer of assets to cancel out the debts of those who have debts with those who have assets. I say paper, because most assets are only valuable if they can be sold, and obviously they cannot. Which does bring us back to taxing the rich, who are the ones who must take a hit. But the mechanism for this still looks to me to be, print money.