Eurozone unemployment rises to new record: 11.6%

[Póg mo 1,749]

Funny how the Germans begged the Greeks and the Spanish to start implementing austerity measures. Of course the Greeks and Spaniards could have told the Germans to go shove off, kept spending money like there was no tomorrow and watch the Germans eat the tab. So ya, we know why Europe implemented those austerity measures. You can't spend what you don't have unless you expect the German banks to pick up your tab.

Of course they did, they had the most to loose from a default. The Germans unwisely flooded Europe with cheap credit during the boom years.

[JohnR! 5,495]

You are correct.. I was not dissing them at all.. But they can only do so much and a growing debt eventually will make their job impossible.. At some point they will have to choose between high interest rates (inflation) and jobs, knowing that every-time they tick up the interest rate to cool inflation that more people will lose their jobs.. If republicans are in control unemployment will be high, if Democrats are in charge inflation will be high.. .As the debt moves even higher we will have both high unemployment and inflation and the fed will be out of options.

"The Big Dog" is correct in that we could grow our way out of the problem by simply not spending more as the economy grows. This was a very valid option for many years but now we are having to borrow large sums of money just to make the economy grow - you can't pay down credit cards by charging them to other credit cards.. We could decide to just pay the interest on the debt and not create new debt fora decade or so. That still would require us not to make new debt.

Agree... They have a fine balancing act ahead of them and yes, they can only do so much to protect the currency before something's gotta give.

The irony in balancing the budget is that when you spend less than what you make you end up with a surplus, which is good for everyone except for us, because our surplus will be of money we issued and back up and normally debt - which is also a form of risk - is one of the ways to expand the economy. Hedging propels the economy forward by its very nature.

At worst we need to be able to pay the interest on the debt without borrowing more money.

[Bad_Daddy 2,209]

Of course they did, they had the most to loose from a default. The Germans unwisely flooded Europe with cheap credit during the boom years.

How else are the German banks suppose to recoup that money? It's not like they twisted anyone's arm to spend, spend, and spend.

[OnMyWayID 1,489]

Of course they did, they had the most to loose from a default. The Germans unwisely flooded Europe with cheap credit during the boom years.

They did not just flood the market with cheap credit... well not totally The fact that the Germans/French were tied to the Euro let other countries borrow money at very cheap rates because of the affiliation.

Similar topic: The Brits recently put out 100 year bonds at incredibly low interest.. Think about that... They have 100 years to pay back a loan and pay almost nothing in interest.. Any country would be crazy not to take that deal. The Germans have also had bonds at near zero. If we could push our debt out 100 years (and stop borrowing) at that rate interest we would be in fat city.. I wonder what terms we would get on 16 trillion pushed out 100 years?

Edited October 31, 2012 by OnMyWayID

[Póg mo 1,749]

How else are the German banks suppose to recoup that money? It's not like they twisted anyone's arm to spend, spend, and spend.

I am sorry, I thought you believed in Capitalism? I must be confusing you for somebody else!

Edited October 31, 2012 by InKorea

[OnMyWayID 1,489]

Agree... They have a fine balancing act ahead of them and yes, they can only do so much to protect the currency before something's gotta give.

The irony in balancing the budget is that when you spend less than what you make you end up with a surplus, which is good for everyone except for us, because our surplus will be of money we issued and back up and normally debt - which is also a form of risk - is one of the ways to expand the economy. Hedging propels the economy forward by its very nature.

At worst we need to be able to pay the interest on the debt without borrowing more money.

I agree with all of that so I am out of stuff to argue about.

Everyone have a happy Halloween!

[Bad_Daddy 2,209]

I am sorry, I thought you believed in Capitalism? I must be confusing you for somebody else!

I'm not sure what your post has to do with budgeting ones money like they have an IQ higher than a peanut. Why do people spend more money than they take in and then blame someone else for their financial troubles when it comes time to pay the piper? Fiscal responsibility. It's like when someone spills hot coffee on their lap and then sue's McDonalds for selling them said coffee.

Edited October 31, 2012 by Bad_Daddy

[Mr. Big Dog 10,747]

How else are the German banks suppose to recoup that money? It's not like they twisted anyone's arm to spend, spend, and spend.

Germany is an export economy and the other EU countries are the places where Germany sells most of its products. Earlier this year, it looked for a moment that Germany's economy was able to grow despite the troubles in southern Europe. That has now changed and Germany's economy is slowing down because of the troubled economies on Europe's periphery. Truth is that Germany grew on and benefited from the debt that Greece, Spain, Ireland and Italy were accumulating.

[Póg mo 1,749]

I'm not sure what your post has to do with budgeting ones money like they have an IQ higher than a peanut.

It's as simple as this. You make a bad investment, you should not expect to recoup all or even some of your money.

Why do people spend more money than they take in and then blame someone else for their financial troubles when it comes time to pay the piper? Fiscal responsibility.

Fiscal responsibility is a two way street. The Germans would still be in debt up two their eyeballs if they hadn't been given more favorable repayment conditions after world war two. The reason being, the United States etc didn't want to see Germany fail and potentially revert back to fascism.

Do you know that Germany after WW11 was told that while it had to repay its debts, it would have to pay interest on outstanding loans until after unification.

It's like when someone spills hot coffee on their lap and then sue's McDonalds for selling them said coffee.

Not that it matters a whole lot, but in that particular case, McDonalds successfully appealed the judgment against them.

Edited October 31, 2012 by InKorea

[natty bumppo 297]

Not that it matters a whole lot, but in that particular case, McDonalds successfully appealed the judgment against them.

and the entire process to fight the lawsuit cost mcdonalds how much $$$$$$?

[Karee 4,191]

You didn't explain what the Fed is suppose to do. Do you mean they are suppose to print more money thus devaluing the dollar? Is that what you meant with that post?

Don't bother. I'm actually surprised you took the bait.

The sun rises in the west. Don't believe me? Google it!

[Póg mo 1,749]

and the entire process to fight the lawsuit cost mcdonalds how much $$$$$$?

Probably about how much money they make in about ten minutes, not that I am worried about mcdonalds.

[OnMyWayID 1,489]

Fiscal responsibility is a two way street. The Germans would still be in debt up two their eyeballs if they hadn't been given more favorable repayment conditions after world war two. The reason being, the United States etc didn't want to see Germany fail and potentially revert back to fascism.

Do you know that Germany after WW11 was told that while it had to repay its debts, it would have to pay interest on outstanding loans until after unification.

Fiscal responsibility? Try fear of the Soviet Union.. The U.S. was in an extraordinary circumstances after WWII.

What do you suggest? Germany just pay all the debts? Let's play that out..

1) Germany pays all the debts for Greece and Spain..

2) Greece and Spain, who borrow tons of money today at very high rates, can suddenly borrow money at Germany levels again..

3) Now with no debt Greece and Spain stop borrowing on a regular basis and live within their means...

3) Sorry that was a joke.. Addicted to borrowing at high rates, borrowing at low rates is well.. more addicting. People go back to living above the level that the country can support as they have done for many years because that is the perception of "normal".

4) Debt builds back up until it becomes a problem, rates rise on borrowing new money, money supply becomes a problem, jobs go away, country tries to cut back to live within it's means, more jobs are gone, people riot, etc, etc

5) It's all Germany's fault again - see step #1

If I was Germany the very least I would demand before taking my countries money and helping is to insist these countries live within their means and not generate new debt. Is that really too much for them to ask? Yes, that means a long term of pain and suffering for many and a lower standard of living for most. That is what happens when you choose to spend your childrens money.

Edited October 31, 2012 by OnMyWayID

[Póg mo 1,749]

Fiscal responsibility? Try fear of the Soviet Union.. The U.S. was in an extraordinary circumstances after WWII.

What do you suggest? Germany just pay all the debts? Let's play that out..

1) Germany pays all the debts for Greece and Spain..

No, I suggest that Germany faces up to the fact that many of its financial institutions totally mispriced Greek debt and should be made to suffer the consequences.

2) Greece and Spain, who borrow tons of money today at very high rates, can suddenly borrow money at Germany levels again..

No, not at all what I am suggesting.

3) Now with no debt Greece and Spain stop borrowing on a regular basis and live within their means...

Brillient, now how do you suppose they do that? By forcing them to take "bailout" after "bailout"? Where exactly do you think all this money is now ending up?

[OnMyWayID 1,489]

No, I suggest that Germany faces up to the fact that many of its financial institutions totally mispriced Greek debt and should be made to suffer the consequences.

No, not at all what I am suggesting.

Brillient, now how do you suppose they do that? By forcing them to take "bailout" after "bailout"? Where exactly do you think all this money is now ending up?

eh.. you saw there were two number threes right? The second three was stating that the first three was a joke

As far as Germany mis-pricing the debt.. The majority of Greek debt is owed to private investors (well. kinda).. Only about 50-60 billion Euros is owned by the European central bank. Germany does not set the rate, the market does.. I'm not following how you suggest Germany be forced to suffer the consequences? Greece could default and decide not to pay it's debts but that will not be especially painful to Germany.

What exactly do you want Germany (or Greece) to do?

Edited October 31, 2012 by OnMyWayID