42 sats \ 9 replies \ @Satosora 19 Jun \ on: Eurozone facing acute debt crisis econ
Why are those countries so bad with money? Did something happen that l am not seeing?
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20 sats \ 8 replies \ @TomK OP 19 Jun
That's the democratic mechanism during a demografic collapse and in a corrupt system of buying votes with social benefits
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42 sats \ 7 replies \ @Satosora 19 Jun
They need to be able to support themselves. This bailout stuff isnt working. Each country should manage their own money.
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20 sats \ 6 replies \ @TomK OP 19 Jun
We need some patience. But this union is going down and the transition phase will be tough
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42 sats \ 5 replies \ @Satosora 19 Jun
I dont think it needs to be a hard transition, though. If each country cobtrolled their own currency and bought euro with it, it would work fine.
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20 sats \ 4 replies \ @TomK OP 19 Jun
the problem is, for example, that the southern european countries, which actually need a devaluation of their currency by at least 30 to 40% compared to the euro exchange rate, would be insolvent the moment they introduced their own currency. that means the entire credit market there would collapse, which would lead to the collapse of the entire fiat system. life in southern europe is much more complex, economically divided and tense than in the north. that would be social chaos. Don't think there will be a rational simple transformation phase here
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42 sats \ 3 replies \ @Satosora 19 Jun
I realize each place has its own difficulties, but the cant forever be chained to the north.
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20 sats \ 2 replies \ @TomK OP 19 Jun
the problem with the eurozone and the euro is that the much more competitive north has established a kind of neo-mercantilism here. with an artificially low valued currency and a labor market for cheap labor, the south has been played against the wall, especially in the industrial sector.
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42 sats \ 1 reply \ @Satosora 19 Jun
If the southern states have their own currency, even if it is worth less at least it wont be dependent of defaulting every few years.
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