Is It Getting Too Late To Save the Euro Zone?
- by Kristina C.
- October 2, 2011
- 11:07 pm
Last week ended with the Dow closing 241.58 points down and falling below the 11,000 mark. Both global markets and Wall Street are likely to have their worst quarter in three years. Fears of Greece defaulting on its $485 billion of debt and of a global economic shutdown continue to fuel worries of a credit crisis similar to that in 2008 after the fall of Lehman Brothers.
It’s Sunday night — or more likely Monday morning as you’re reading this — and things aren’t looking too much rosier. Greece has already said that it will miss its budget deficit targets for 2011 and 2012: Its 2011 deficit is projected to be 8.5 percent. This is less than the 10.5 percent of 2010 but short of the 7.6 percent target that had been agreed with the European Union and the International Monetary Fund, in order for Greece to receive the next bailout installment of 8 billion euros ($10.9 billion) to avoid defaulting on its debts.
As eurozone finance ministers prepare to meet on Monday, there is a growing sense that Greece will default. The country’s economy is expected to contract by 5.5 percent this year and 2 percent next year. To qualify for the next tranche of the bailout, Greece has passed $8.8 billion in austerity measures and is preparing to lay off 30,000 public sector workers, most of whom are over 60 years old. The unpopularity of the measures, which follow previous rounds of salary and pension cuts and tax raises, is apparent as the country is hit by renewed waves of strikes (of most of the public transit system last week) and protests. Some Greeks have turned to bartering to get by on less and less.
Brian Beutler at Talking Points Memo says simply that “the European monetary union is on the verge of collapse.” Time is running out for eurozone finance ministers to figure out what to do not only to prevent a Greek default, but to staunch what has become a growing crisis in the EU, with repercussions for the the world economy. The 17 European Union nations have less than five weeks to show investors that they indeed have some plan to keep the eurozone together, before a November summit meeting of the Group of 20.
The euro has dropped to an eight-month low against the dollar prior to Monday’s crisis meeting of European country ministers. As of 9:13 a.m. in Tokyo, the euro has fallen to $1.3368 per dollar from $1.3387 in New York last week, after declining to $1.3322 — its weakest since January 18.
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Read more: Athens, Default, economic crisis, eu, euro, europe, eurozone, financial crisis, greece,sovereign debt crisis
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Thank you science. RIP Steve...it's one of the few things nobody can get a pattent on.
This is great!
technically she dont have to contract with the government by getting an ID/DL and this is a sick joke!…
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Kristina C. Kristina Chew teaches ancient Greek, Latin and Classics at Saint Peter's College in New Jersey.... more
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It used to be South America that stabalised the U.S. but they've grown wise. This is a currency war plain and simple.
deserved punishment. It all depends on whether the countries really entered this "Porject" out of good faith and naivité or out of greed and ambition.
Of course, those are the two main reasons people get swindled to begin with.
This was the equivalent to the "I have a nice iron lattice tower in Paris to sell to you, very cheap". Unfortunately, so many promises were made by so many politicians throughout that many people were fooled and happily agreed to enter the Euro zone and change their currency to Euro.
Excuse me, but what were the real chances of "weaker" countries actually gaining from plaing by the "strong" countries rules and demands? To begin with, we were forced to mutilate our goods production in order to favor import from other countries'. Salaries and prices have never been equivalent throughout the Eurozone (which of course does not benefit weaker economies), free circulation of citizens is not really so (and curiously this has favored immigration from other 3rd world countries). And of course, the basic fear some of us pessimists always had: Is it really that clever to put all eggs in one basket? If one country collapses, won't it drag the others down?
Apparently pessimism was quite realistic. As usual, those taking the biggest part of the blows are always the same ones (the already weak). No doubt someone has beneffited a lot from thsi game (some countries and more than one politician for sure).
I'm stuck in the Euro zone and I still can't figure out whether I should feel sad -and scared- for what's happened, or whether I should feel the present situation is a
The US has the largest deficit in the developed world by far outstretching Greece's or any other EU country. The US debt to GDP ratio is near 100%! If any country is near collapse, it is the US & Calif. is worse off than Greece, so ask yourselves why the US capitalists are trying so hard to destroy the EU starting with Greece? Banking/Corporate incompetence & greed started this crisis according to plans & the US, IMF/World Bank are seeing it thru to the destruction of Europe so the US can rule the world for the benefit of its greedy corporations, as it has done for so long before the EU got strong enough to oppose its empire of evil.
Now that the EU is the leader in the world on human rights & development aid, & the EU is much more respected around the world than the aggressive US, the US can't have that, so it must bring it down. The power of propaganda, but the facts don't bear it out, which doesn't matter as long as people 'believe' the lie. That then makes the self-fulfilling prophecy come true.
It IS an Evil Empire, but one that is about to collapse itself, but following in the footsteps of Rome - too much military spending & too little tax collection = too much debt = collapse. May the Eu & Euro out
Greece is having a hard time making its payments because the IMF/World Bank are doing to it what they've been doing to other countries for so long - using Shock Economics to destroy them. They wouldn't be having such a struggle if the interest rates weren't suffocating them.
The article mentions the Euro 'falling' to a new low against the dollar. What a joke! The Euro & dollar were meant to be at par when the Euro came out, & the dollar was actually worth more than the Euro at first, but gradually started losing value. So $1.33 to one Euro is still poor showing. It is the dollar that is weak & worthless, so why do the USAmerican ratings companies et al keep saying the Euro is going to collapse? Self-fulfilling prophecy, that's what. They hope to create the belief that it is failing so that people will stop investing in it & the EU.
It's all part of the conservative/corporatocracy plan to end all social benefits to the people & create a New Feudalism. They control the banks (our money) including the FED (which should be owned by the people/country).
The US has the largest deficit in the developed world by far outstretching Greece's or any other EU country. The
While some socialist policies can be a net benefit to a country's stability and economy, it is difficult to keep things from going too far like they have in Greece, Portugal, Spain, Argentina, and many other countries over the years.
The Euro survives for the moment because the German people, in particular, tolerate being taxed to support other member's feeble economies because their own, now based as it is on an artificially cheap currency (from their point of view), continues to do well. Should demand for BMWs, Mercedes and VWs fall or the cost of keeping the PIIGS afloat continue to rise, the whole sorry experiment will fall apart at the seams. Alternatively, election of German (and French) governments of a more nationalistic outlook would have the same effect.
But they are unpopular with the people and staying in power means not upsetting the rabble. So don't expect the government to do much.
Anyway, why not let Greece go bust?
When a company goes under the receivers are called in and they try to get the best return they can for the shareholders etc.
Why not the same for a country? I'm sure there are a few people and/or companies who'd like their own sovereign state. The Democratic Republic of Microsoft, The Kingdom of Halliburton, Volkswagen(Southern Europe).
Instant history and immunity from prosecution.
Although I guess that some of the large players already have that.
However, your understanding of politics is a little strange. I live in the UK and am not aware of any really right wing government and there is no way we will go to war. I doubt that Poland or Austria would be interested in it either. Where did you get that idea from?
Perhaps you should look a lot closer to home about the failure of rich countries not helping in disasters when yours does not help anyone including other Muslim countries. The oil money flows straight into the wealthy pockets and not the poorer people anywhere.
Please countries with money, for hope of this continent, help the Europe to survive to this financial chaos.
Thank you very much.
Thanks for reading my words.Have a wonderful day,and night.
@MRS. S
@MRS. S
Young lady, what are you talking about?
The Europeans have been and are involved with relief organization. When some of the high profile Natural Disasters have occurred around the globe, they have always sent rescue teams for earthquakes, doctors for caring for the injured, and probably much more for helping those in need globally. A few decades ago, an international team of doctors and nurses—they were practically all European—came to the aid of victims of a Cholera epidemic—I believe it was in an African nation.
You were just too young to know these truths! But, you are not too young to know the rescue teams that were sent to Japan. Remember, the tsunami/earthquake was just last March. I know what I am talking about, because I have a close friend in Japan and was very concerned for her well-being!!!
Yes, money is the root of all evil, because we put a great value on it. Even if we did away with currency, gold, and silver, we would establish another form of currency, for example, rice, corn, water, etc., etc. For example, when America gave corn to parts of Africa a few decades ago, the warlords stole the corn from the common citizens and out of the mouths of babes so that they could sell the corn for weapons.
Some of our states, for example, Minnesota, have taken several weeks of furloughs, unpaid leaves, already. It is extremely hard on families who live closer to “paycheck-to-paycheck,” meaning they live one paycheck from defaulting on their home mortgages, auto loans, utility bills, credit cards bills, etc., etc.
But, most of you do not know that many of our states will be operatinging in high percentage deficits by next summer. Nevada is forecasted to be running with a 47% deficit by next summer. And, apparently, our postal system makes monthly payments of around $5.5 billion on a debt of their own. USPS has spent the last two months preparing us for a shutdown this winter.
I am a Democrat but our President is lying to the American people when he says that the new three free trade acts will help the American economy, he LIES. I don’t much about the except I do know that the agreement with Panama will open up yet ANOTHER tax haven and this tax haven will make the others look like a glass piggy bank. There should be a petition for us to sign demanding not only that these trade agreements be turned down but all so called free trade acts be repealed and replaced with fair trade. This petition should be sent around the world for at least a BILLION signatures. From the hands of the many into the hands of the few and the many have little else to lose, how sad!!!
So it would be really nice if the US traders and UK traders could concentrate on their own woes. Once upon a time, President Clinton left office with the US budget in surplus - but that was a very long time ago, wasn't it!!
http://www.laleva.cc/economy/wto_shrink.html
The GATT Uruguay Round Agreements and the establishment of the WTO were proclaimed as a means of enhancing the creation of global wealth and prosperity and promoting the well-being of all people in all member states. In reality, however, The WTO has contributed to the concentration of wealth in the hands of the rich few; increasing poverty for the majority of the world's peoples, especially in third world countries; and unsustainable patterns of production and consumption.
The WTO and GATT Uruguay Round Agreements have functioned principally to pry open markets for the benefit of transnational corporations at the expense of national and local economies; workers, farmers, indigenous peoples, women and other social groups; health and safety; the environment; and animal welfare. In addition, the WTO system, rules and procedures are undemocratic, un-transparent and non-accountable and have operated to marginalize the majority of the world's people.
These "bailouts" just forestall the inevitable....or just drag down the other countries that ARE fiscally responsible.
There are also some interesting comments!
in the backyard. How could world leaders allow such a global disaster????
Pity Minerva's Owl (Image on Coin) cannot summon her mistress to talk some sense into their leaders.
The EC was good for big business, but certainly not for working folk – and this has also been proven true for our free trade policies in Canada, United States and other American nations.
It's called schadenfreude....
You are so right. Shipowners, aka Onassis and co. don't pay ONE CENT in taxes, and they threaten to outsource their flag if the government should demand it of them.
So now the poor man has to bail Greece out by taking unpaid leave till the end of the year in order to get the rescue loan.
Meanwhile the shipowners are still not paying.
Sound familiar?
Meanwhile there is another totally nasty thing going on:
Rich people are betting on Greece's collapse (This worked with Ireland, worth another try). and THAT is behind S&P's downgrading excercise.
What I don't understand - yet - is why Ms Chew is so eager to trash the Euro.
Is she betting on the collapse, too?
Very one-sided "reporting"; alomost worthy of FauxNoise!
Like it or not (and America and a few head-in-the-sand Brits don't like it) the EU is the best chance we have of steering Europe away from centuries of mistrust and war. Of course there are teething problems, big ones, but we should stick at it, not give up and return to the dark ages.
We've only been working at the New Europe experiment for thirty years. It's taken America three hundred to discover whether their experiment has worked or not.
You must be the devils advocate? Either that or possess a wicked sense of humour! Haha!
voter mandate"?
Surely by pure democratic logic, the higher the share of the vote the greater the voter mandate. Thus if the Republicans win the election then the public must have demonstrated greater support for them - and vice versa if the Democrats win.
If money brings us so much:
- hardship
- damage
- envy
- injustice
- lies
- destruction
- violence
- wars
- suffering
- exploitation
- worry and fear
then we have to abolish it before it kills us.
Why don't we abolish money?
Because it rules the world and not us.
Because we became its slaves.
Because we work for money and not for ourselves.
Because we see the meaning of life only in wealth.
Because we think we can value everything with money.
Because we can't live without it.
Because we think that without it, our society cannot function.
Because we got used to it so much that we don't even think about abolishing it.
Because we cannot even imagine a society that doesn't use money.
But we should, otherwise we will eat up this planet together with all the money we have. And so, we will become the first animal species on this Planet that exterminated itself because of greed for money.
Some correct the deficits faster than others. Some say it's a miracle the € has lasted as long as it has.
I think politics are to blame for not handling the Greek situation earlier enough.
What to do? - Keep correcting budget deficits and keep your fingers crossed world economic growth rates pull you out of recession.
cheers!
Because that's what's got it to where it is. And that's what you're trying to bring about in America too.
And it suits the powers behind the money down to the ground!
On the other hand very thing got more expensive when they unreduced the Euro.
Or forceps they should stop giving money to other countries and sort out there own financial mess first, that would solve a lot to I think.
@Mrs. S.
Shame on you. First, as world economies fail, those you worry about will be infinitely worse off than they currently are. Second, how low and mean spirited is your imaginary friend that you rejoice in the potential for suffering.
Lastly, the things you complain about are done by everyone with the kind of power that allows them to determine the destiny of others. Every government official, priest, shaman, mullah, imam, and con man performs only those acts which are beneficial first to themselves, then to their cultural or religious group, then to their country, and so on. Get off your damned high horse. My mother used to say, "people are no damned good until proven otherwise; but you must give them a chance." When will you?
I live in England, a country in the United Kingdom of Great Britain and Northern Ireland, which in turn is a member of the European Union. As far as I’m aware stores here are not allowed by European law to give out-of-date food away, they have to bin it! As an almost fully disenfranchised member of the underclass I am not allowed to remove said produce from their garbage skips on pain of prosecution for theft!
Unfortunately the EU also pays already wealthy land owners and farmers to NOT grow anything. It sure is a twisted old world that we live in!
As for the Euro zone, I say good riddance. It was only the way to raise prices, steal a lot of money during the currency conversion and for the richer members to use the poorer ones. I hope the EU itself will fall apart.
Have a look at this 30 minute movie for a positive explanation of why our reality is like that. http://www.youtube.com/watch?v=tGk5ioEXlIM&feature=youtube_gdata_player
The discussion should be rather "save the US$" or "save the £" :-)
just wait and over time we will be in or near a depression. I'm afraid
nothing is going to happen to help the economy and job situation before
the election. President Obama has some good ideas but the house won't
pass anything he wants despite the majority of people siding with the
President. That takes us up to the 2012 election. One of two events
will occur: 1. The people will finally wise up and vote a strong
Democrat majority so reelected President Obama can tackle the economy
and strong growth along with jobs will follow. 2. The repubs add to
their gains and take the senate along with the house. (And I will be
sick if President Obama loses!) The repubs with their false belief in a
voter mandate will further cripple both the economy in the U.S. and
around the world leading us into a depression or very close to one.
Just to point out the obvious the gap between haves and havenots will
widen leading to very probable riots in the U.S. and more around the
world.
Reminds me of history when we studied the Dark Ages. We are possibly about to enter a new Dark Age. You have heard of the Arab Spring, will this protest be known as the start of the American Fall?
Read more: http://newsfeed.time.com/2011/10/02/occupy-wall-street-a-larger-march-and-standoff-on-the-brooklyn-bridge/#ixzz1Zi7MiafY
Zoe B. is right about some European countries sending aid (mostly in the form of food and other living necessities) to Africa and other areas in need around the world. They aren't sending as much as they used to, but the aid they send is still substantial.
I don't know what country you're from but it certainly must not be America. Most stores don't throw perfectly good produce away to keep prices artificially high. If there's any throwing away, it's being done by the growers, or wholesalers, .. not the stores. Virtually EVERY store I know of gives the produce that is about to go bad to community food banks, or other community groups that give the food away, FREE, to people and families in need. If the produce has already gone bad, the stores almost always give that spoiled produce to farmers so they can feed the animals they're raising (much of it to pig farms).
In our country, the federal government pays some of the larger farms to NOT grow anything on their farms to keep prices artificially high enough for the farmers who are producing food to make a decent living. The farm subsidies program should not be paying anyone to NOT grow produce. They should be encouraging ALL farms to grow as much produce and the can. If the prices the processors/wholesalers are buying the produce from the farmers for, isn't high enough for the farmers to make a decent profit, .. the government could then give subsidies to all farmers, based on the quantity of produce they grew/sold. Paying someone hundreds of thousands, even millions of dollars to sit on their butts (not grow produce), borders on criminal actions in my opinion.
If there is more produce grown than the processors/wholesalers can handle, the government should
if you don't care about the situation, why open the page, and post an inane, and ignorant, not to mention, badly thought out, comment.
1:38AM PDT on Oct 3, 2011
Just make Greece sweat they have promises and it should be based on performance
not promises
Read more: http://www.care2.com/causes/is-it-getting-too-late-to-save-the-euro-zone.html#ixzz1ZhqMv09q
not pronises.
So yeah, I'm kinda glad they are in $hit.
Read more: http://www.care2.com/causes/is-it-getting-too-late-to-save-the-euro-zone.html#ixzz1ZztjOTfA