Showdown In The Euro Zone
http://thedianerehmshow.org/shows/2012-05-15/showdown-euro-zone
Greece says it will hold new elections as talks failed to produce a coalition government. That news came this morning. Yesterday, European markets dropped amid concerns that Greece’s departure from the euro was near. French President Francois Hollande meets with Angela Merkel tonight to discuss the crisis. The German chancellor says a state election defeat for her party won’t weaken her emphasis on budget discipline. But German policy makers are hinting at some flexibility on austerity. Meanwhile, Spain’s attempts to clean up its banking system might not be enough to build confidence. Diane and her guests talk about a showdown in the euro zone.
Guests
Zanny Minton Beddoes
economics editor, The Economist; formerly, economist at the International Monetary Fund.
Jacob Kirkegaard
research fellow, Peterson Institute and senior associate, Rhodium Group, a New York-based research firm.
Christina Bergmann
senior correspondent, Deutsche Welle
Comments
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To say European austerity has not worked is ridiculous, it was not given a chance to work! how could anyone think decades of government malfeasance can be cleaned up and righted with a couple of years of belt tightening, it can't. Europeans cannot avoid austerity no matter what they do, either can we.
I am always disappointed by the so-called "austerity" measures.
Let's call a spade a spade.
The people, the 99%, and the workers are getting sc***ed,
As I recall - from an article in The Economist - Goldman Sachs (GS) had a hand in setting up the financial condition in Greece. GS enabled some financial instruments" to be created and sold. And GS was well paid for their work.
Are the Global Traders doing well? I think so.
How about real austerity for the people that caused the problem.
AUSTERITY = "Trickle Down" = "Supply Side" = "Reaganomics" = "Job Creator"
DEREGULATE + DEFRAUD + DENY
Arkus Duntov wrote:
To say European austerity has not worked is ridiculous, it was not given a chance to work! how could anyone think decades of government malfeasance can be cleaned up and righted with a couple of years of belt tightening, it can't. Europeans cannot avoid austerity no matter what they do, either can we.
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At least Arkus Duntov is honest -- the objective of austerity is to destroy the economies of these countries, and it doesn't matter how long these economies remain in total disarray to these folks because, as they say, these countries are just getting what they deserve.
The rest of us aren't sadists -- we want to fix the problems. Since the austerity advocates don't have any answers, it's appropriate that the people in these countries are looking for alternatives.
Fraud !
Follow Iceland's lead and kick the Banker's to the curb!
Most of the Greek debt doesn't even belong to them, it's the Bankers that have caused this problem.
Hang the Bankers for their risky gambling habits and quit blaming the Public.
This is what the U.S. Should have done!
Steve on Plum Isle wrote:
As I recall - from an article in The Economist - Goldman Sachs (GS) had a hand in setting up the financial condition in Greece. GS enabled some financial instruments" to be created and sold. And GS was well paid for their work.
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Exactly correct -- and when GS subsequently screwed up, they ran to their friends in the U.S. Government to make them whole.
That's the philosophy of the super-rich -- they have been chosen by god to be rich, and can therefore do no wrong. If they do wrong, then everyone else should make up for their stupidity. Of course if the non-super rich do something wrong, their lives should be destroyed forever. What hypocrites.
I was amazed to hear that 80% of registered voters in France voted in this most recent election. Clearly the people of France have spoken.
Also heard that 58% of Americans voted in the 2008 Presidential election which was I believe an all time high. Sad
Can your guest explain the ripple effect of the sub prime mortgage fiasco here in the states and how it effected the economic situation in Europe. Were the same banks involved in both situations?
Mike Larson wrote:
'Since the austerity advocates don't have any answers'
That makes no sense!
urban rage...have listened to a few programs about how this negative economic tidal wave started in Iceland via banksters influence had infiltrated the government there. Think I saw that in the documentary "Inside Job" or on PBS somewhere. I need an economic graph like a tidal wave graph. Where the tidal wave started hit first then moved to next. Of course no world wide warning system that went off.
Arkus can you give examples of where "austerity" has worked in an economic emergency?
Greece should leave the EU and join the SEC. That way, they could get their share of the BCS pool.
kathleen wrote:
Arkus can you give examples of where "austerity" has worked in an economic emergency?
CANADA
The Diane Rehm show is back to disproportionately letting almost only men get through on their phone, email, facebook lines especially on international polictics and foreign policy. Listen over and over the Rehm Team and the screener are being extremely gender biased. I would say they are back to about at 10 males to every 1 female that gets through. These leanings are often not deliberate. Listen closely
Urban Rage:
If you throw out the bankers, domestic and international, who will finance the on-going expenditures associated with Greek domestic/social spending?
kathleen wrote:
Arkus can you give examples of where "austerity" has worked in an economic emergency?
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Don't hold your breath waiting for an answer here -- this question has been asked on other blogs and no answer has ever surfaced. The real answer is that austerity is the wealthy folks answer to protect their wealth, and the result is always the destruction of the lives of the poor and average people. A look at Hoover's response to the Depression is a perfect example. The Republicans choked off Government spending dramatically, and the economy spiraled down as layoffs resulted in people not being able to buy products which resulted in more layoffs, and on and on. (This is not to say that the Smoot-Hawley tariffs didn't contribute -- they did and for the same reason, as imports ground to a halt, exporting companies laid people off which resulted in people being unable to buy products which lead to more layoffs and more tariffs. The overall result was massive excess capacity in the manufacturing sector (like we have today) which meant no corporate investment. As Mark Twain wrote: "History doesn't repeat itself, but it sometimes rhymes." (I love that quote! ;) ))
kathleen wrote: "The Diane Rehm show is back to disproportionately letting almost only men get through on their phone, email, facebook lines especially on international polictics and foreign policy."
Did it ever occur to you that perhaps women are not responding in the same numbers or that the comments are off mark. Ridiculous to think D.R. is biased towards men. Are you saying Diane is a Rush Babe!
The proposition that the massive Government spending during WWII pulled the U.S. out of the Depression is somewhat true, but the total destruction of our chief industrialized competitors probably had just as much of an impact (or a greater impact) particularly after the war when the U.S., whose industrial infrastructure was intact, was in the position of a sole source supplier to the rest of the world. To argue that WWII was a boon to Europe or Asia seems to be a stretch.
In an interesting but expected outcome, countries who chose austerity over stimulus spending as the way to get through the recession and grow their economies are having a hard time of it and England has fallen back into recession. England’s prime minister is under fire. There he was, on the cable defending himself in Parliament. An article in the Cincinnati Enquirer titled, ’Voters Rebelling Against Austerity’, cited the trouble Governments all across Europe are having as they try to follow the path of austerity adopted by the European Union as the remedy for repairing an economy in recession.
The United States on the other hand, despite Republican calls to follow the path of austerity, chose increased government spending to stimulate the economy and begin healing from the recession. This has resulted in a slow but steady upward trend in the US economy and put us on a sustainable path to recovery. Republicans have fought the President on this all the way with no real justification for their position. Opposition and obstructionism have been the hallmarks of Republican leadership and have hurt the country’s recovery and not helped it.
The citizens of the European Union are pushing back against the policy of austerity and are putting governments all across the Continent in jeopardy in the next elections. They want a change. They want to be led out of austerity and recession and are agitating and tossing out politicians who wont listen. Republicans facing a big election in 2012 have so far stuck to their guns on the theory of austerity as the way to economic recovery. I wonder how long they will hold that position as the American electorate becomes aware of the failure of Republican economic theory.
MsgtVance wrote:
"The United States on the other hand, despite Republican calls to follow the path of austerity, chose increased government spending to stimulate the economy and begin healing from the recession. This has resulted in a slow but steady upward trend in the US economy and put us on a sustainable path to recovery"
Please explain how 5 trillion dollar Obama borrowing has done anything other than kick the can down the road. The problem has only been made worse by a massively increased debt burden on the American tax payers. Stimulus spending was only a delay on unavoidable austerity.
Yes, austerity to cover gambling markers of the wealthy investing class is sadism. Poor Gov. Brown in California submitted a butcher budget cutting desperately needed services. I am an advocate for disabled retirees in NC. California had some really excellent programs keeping disabled people at home which saved gigantic amounts on Medicaid, even Medicare. When they were cut no one is sure where disabled people went: To substandard overcharging rest homes; to the back room or the street to die. So many small minded money worshiping sadists think they will profit by pushing austerity on the powerless. These immature fools are in a denial that tey will ever be disabled or poor or broke. They gamble for the longshot with their few productive years
keeping their admiring eye on those hard-hearts at the top. Integrity is destroyed when pensions disappear, when Social Security and Medicare paid for the entire working life is cut. How does the immature sadist austerity advocate think he is an exception to the treachery of the wealthy? Can he not see how tey soil and discard their underlings ? All these peculiarly named posters pop up shilling for the rich. Maybe they get $.50 a hit.
The reason so many more men are heard at DRShow may be that "Men" (of a certain dork-headed sort) possess the opinion being sought. If you fail in delivering the goods you're rejected from te dock.
MsgtVance:
" with no real justification for their position"
Oh but there is....and that is to ensure that they will get themselves back into power in November. That is their sole reasoning.
They care nothing about the average American citizen, they don't care how their obstructionism wounds and destroys the economy. Their single minded pursuit is power and to be an instrument and servant for the wealthy.
Neither party is doing anything for the average American. But let's not kid ourselves about what the Republicans are about.
As far back as the 90`s the people have bailed out bad investments our governments have made. In my county,we had to refill the treasury because of the lost investment in the S&L debacle.In 2008,our nation had to bail out these financial institutions,using taxpayer money.In my State,taxpayers must now refill our treasury because corporations have threatened our livelihood,totaling over $270 million.
What makes me mad is someone saying taxpayers are getting a free ride. NO SIR !!!! I want the things I voted for and PAID FOR,and expect to get.
GREECE only collects 75% of taxes due.The U.S. gives tax breaks that go onto the credit card.Stop taking our tax money for irresponsible corporate bailouts,non productive tax breaks, and corporate welfare.OUR FISCAL FAILURES ARE CONJOINED BY FAILED POLITICAL IDEALS.
I disagree with the assertion that stimulus was only a delay on unavoidable austerity. Once the economy kicks in and the American corporations let loose of the 3 trillion in reserves and start hiring again, the amount of tax revenue will go up. However, as soon as the revenue goes up, Republicans start scream it's too high and go forth and cut taxes, not remembering that tax revenue is supposed to be spent on paying back what was borrowed. The Democrats on the other hand see, when the economy recovers, that there is a lot more money coming in and start screaming to increase spending on all sorts of pet projects for the hometown crowd, conviently forgetting that money is supposed to be used to pay back what was borrowed for the stimulus.
It's this short sightedness of the politicians that perpetuates the problem. We can pay down the debt, as soon as the economy recovers, and as long as the politicians keep their hands out of the till. We need some adults in those rooms and right now there are only 8 year old's throwing temper tantrums because they didn't get what they wanted for their birthday.
Pancake Rankin wrote: "So many small minded money worshiping sadists think they will profit by pushing austerity on the powerless. These immature fools are in a denial that tey will ever be disabled or poor or broke."
An unwillingness or refusal to understand that middle class welfare is the problem is the height of immaturity. Odd how the "compassionate" would rather see the whole system collapse rather than maintain workable solutions to help the truly needy.
Case in point as to who the Republicans really are:
http://nymag.com/daily/intel/2012/05/maybe-gop-will-just-repeal-obamacar...
They don't care if you don't have insurance, they don't care if you suffer, and they don't care if you die.....as a matter of fact, they'd prefer that you do and be damn quick about it. Time and money is wasting and you are in their way.
Mike Larson: You are astute, but today you wasted time trying to refute a macoute (which is impoossible). Instead you should have complained that the FED, which can pull money value out its anus, has been handing the fruit of its digestion exclusively to financiers here and abroad. Inflation doesn't scare me nearly as bad as seeing so many people without jobs, or doing illegal work to get by, or cold, or homeless, or hungry, or kids in school wearing castoffs, or inmates in rest homes nobody talks to. Distribution of opportunity is the worst problem in the still wealthiest nation. When you are producing record numbers of unemployed debtor graduates you have to admit the drains are backed up somewhere. This country has enough wealth to provide health care for all, free college for all who want it and are capable, enough that every family could have a secure house. But all the wealth is in 400 families who don't want to share. 400 families who stifle opportunity for fear someone more capable will eclipse them. Such hoarding cannot help but produce an implosion or a revolution or both. Our national debt is owed to Social Security and other trust funds robbed for bailouts and warmongering, but the bulk of it is owed to the wealthy class right here at home. Holding up the 7% supposedly owed to China is a boogerman for idiots. The problem is we pay tribute to the rich. Obama cries about balancing the budget all day long, with Romney patting his bumpus saying ,"It's OK." Screw the creditors. Let their make believe instruments dissolve like play money. Pay the people to do the necessary work and take care of the helpless. Kick the immature mercenary sadist traitors to the curb. They are worthless. Don't reply to idiots. It's like punching a tarbaby.
Pancake Rankin, I think all you do is to reply to my posts but pretend not too.
Arkus the best anyone on here should do is to ignore you....
Teece Bowman wrote: "Arkus the best anyone on here should do is to ignore you...."
Ditto.
What name will you shift to when they boot you out of here next time Monte?