Is anyone else confused???!?!?!?
The EU acts like it.
Moderator: Nicole Marie
dai bread wrote:Austerity and cut-backs take money out of the system.
dai bread wrote:Interestingly, neither that Government nor any subsequent one, restored benefit levels.
Giant Communist Robot wrote:Keynes said governments need to austere when the economy grows too fast, and spend when contractions occur.
But, because they are not austere during the boom cycles and incur massive debt even when they should be raising surpluses, they can ill-afford to spend during the contractions.
Regardless of whether you accept Keynes view on debt or not, you have to acknowledge that its growth has a negative psychological affect on borrowers and taxpayers...
Giant Communist Robot wrote:It's confusing to call deficits debt. Debt must be repaid.
The increase in debt for any specific period of time is referred to as the 'deficit' for that period, at least when it is reported in the papers (I'm not sure if the treasury uses the term).
However, since it buys and sells securities to itself to make up or relieve any difference in the deficit or surplus, the distinction between debt and deficits is blurred somewhat.
Grupo Gowex (GOW), a Spanish provider of Wi-Fi wireless services, is moving funds to Germany because it expects Spain to exit the euro. German machinery maker GEA Group AG is setting maximum amounts held at any one bank.
“I don’t trust Spain will remain in the euro zone,” said Jenaro Garcia, founder and chief executive officer of Madrid-based Grupo Gowex, which provides Wi-Fi access in 15 countries.“We moved our cash and deposits to Germany because Spain will come back to the peseta.”
Maybe the GBP is hanging in there as a sort of sea-anchor, keeping them all grounded?
Giant Communist Robot wrote:My posts make me look like a nutcase. How could reason lead me here?
Selma in Sandy Eggo wrote:I have no idea what sort of zero is needed for economic theory - I don't understand it. I suspect nobody does, and that the people who theorize about it are confuseder than I am.
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