Just read an article by The New York Times and my computer is downloading a documentary. So, I’m decided to write an article to buy the time. That article said Greece is the epicenter of the Europe’s financial disarray. Not really! It’s the Germany that is the epicenter of economic problems in Europe.
The situation in Europe is bad and it was worsen by politics and the moves of Germany and France. Greece disease is rampant in Europe. The upside of the downside is that Euro is cheaper than it otherwise would be. But I think Europe plays to hard. The crises are spiraling out of control.
The crises were worsen by politics. I wrote in a few articles that Greece should be allowed to default on its debt. I have noted many times already that Greece problems, later or sooner, will come back again. Borrowing dents to compensate the debts is not the best solution.
France and Germany should allow Greece to default at the very first time when the crises hit and fix it once and for all. Alas, they didn’t. They agreed to bail out Greece instead. Now, Greece is holding a larger amount of debts. And the economic growth is of course very bleak. So do the chances of compensating the debts.
France and Germany should have sacrificed short term growth for long term one. It was in their interest to bailout Greece. But it was in Europe best interests. Germany has been capitalizing from the crises in Europe. So, it’s clear that she doesn’t want the crises to stop.
The fears have spread to other major economies, making clear the crises are far from over. For now, Germany is more of a problem that a solution to debt crises in Europe. Germany’s strong economic growth is, for a part, at the expense of that of Europe. Germany exports unemployment to the already troubled countries.
I think Germany should make a concession for the sake of the whole Europe. If things stay unchanged, Germany will fall into troubles too. And Europe would probably fall into a deep recession.
Interest rates are on the rise, investor’s confidence is eroding and growth itself is waning. . Act now before it’s too late. It may be naïve to say Europe can compete with the United States neck and neck in term of currency depreciation. Politically speaking, Europe is not the United States of Europe. As far as I know, Europe has three sticking points needed to be addressed.
Europe doesn’t have three main things in common. 1. Common fiscal policy 2. Common defense policy 3. Common foreign policy. If we all stop the currency war, I don’t think United Sates will have another pretext to keep it up.
Solve the Greece syndrome now given the fact it’s getting bigger and bigger. Why do care much about Europe and US? My country is more than vulnerable to global shock. It’s not going to make any big changes but at least I already let my voice be heard.