Saturday, December 10, 2011

Fiscal Union

Kevin O'Rourke from Project Syndicate  

With this in mind, the most obvious point about the recent summit is that the “fiscal stability union” that it proposed is nothing of the sort. Rather than creating an inter-regional insurance mechanism involving counter-cyclical transfers, the version on offer would constitutionalize pro-cyclical adjustment in recession-hit countries, with no countervailing measures to boost demand elsewhere in the eurozone. Describing this as a “fiscal union,” as some have done, constitutes a near-Orwellian abuse of language. ...

It is really, really hard to cut nominal wages, which is why reliance on “internal devaluation” is a recipe for stagnation and disaster.
This is whole point, end of the day they are all suffer together, simply their word and their action are not same direction, probablely the leaders think if they are drag on the problems go away, but  this is a pure logic, yes work on just a simple basic and numbers…   Do you think who plays games then…? Make the answers so oblivious, you know you can not take your money into your grave… Supply and demand, to be frankly southern European  countries they don’t have enough belting their belt up,  you are already staving you don’t need to diet, their northern brothers sisters too much but they don’t want to share with  their stuffed southern brothers and sisters. This called a huge dysfunctional family is called “euro family”. And Valkyrie -Merkel come with her a huge sword and riding air of  blow and telling southern “ you better belting  your belt up!” well what can I say…!