Solving the eurocrisis

Take it away professor:

People realize that short of socialization or monetization of debts the risk of default is not going away.

There are no other solutions possible.

Germany pays up and buys the debt or the ECB prints the money and buys the debt.

That\’s it: your choice now euroweenies.

4 thoughts on “Solving the eurocrisis”

  1. “And even under these two alternatives the problem is only transformed and not banished” he rightly continues. Is there really a solution without abandoning either the euro or the sovereignty of Spain and Italy (let alone the smaller countries)?

  2. Or, they could just default on it, admit they can’t pay it, lose their credit rating and ability to borrow, and thus have to live within their means from here on in by not spending more than they take in tax.

    That would work too, wouldn’t it?

  3. I’m with IanB. I’m not sure what kind of sovereignty it is to be able to print your way out of one debtor’s debts. Sovereignty is always limited by your ability to finance the things you want to go about being all sovereign about. It’s not an absolute power wet dream thing.

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