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Wednesday, 25 January 2012

European fiscal agreement "torpedoed"

Most of Europe wants Germany to contribute even more funds to rescue those countries which can't repay their huge debts, but they don't seem to want to agree that they should spend less than their income.

Widespread European resistance has "torpedoed" "debt-brake" proposals for all EU member states to pass balanced budget initiatives, and the idea that countries which stubbornly violate deficit rules be brought to the European Court of Justice, according to Der Spiegel's "Germany at odds with partners over euro crisis".

Even Belgium doubts that balanced budget laws are the right idea to solve Europe's crisis, according to "Belgium's new prime minister Europe mustn't just focus on austerity".

It appears that the Euro can not survive. It appears that indebted countries want Germany to bail them out repeatedly: yet they also don't want to reign in their debt.  At which level of debt should Keynesian stimulatory spending be curtailed?  How many trillions need to be printed?  How do those politicians run their household budgets?  Has any mortgage defaulter been bailed out twice?  Which planet are they on?  Which planet am I on?

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