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Europe Retorts To Geithner With Some Lecturing Of Its Own, Demands The World Promptly Fix Itself
Demonstrating that when it comes to "lecturing" Europe is no better than America's own Tim Geithner (who was loudly jeered at last week's FinMin meeting in Poland after he came, he saw, and told Europe to do everything that the US had done before with such 'stunning success'), is an exclusive report from Reuters which references an EU document according to which "the European Union will call on China this week to boost domestic demand and on the United States and Japan to tackle their public deficits." Furthermore "the consolidation plans to be undertaken in most EU countries, in the U.S. and in Japan need to be accompanied by appropriate policies in other regions of the world so as to avoid an undesired compression of global demand." In other words, if the rest of the world could promptly go ahead and fix itself and fall bak in line so the status quo can resume its dutiful creep to previously unseen Ponzi heights asap, that would be wonderful and much appreciated by Brussels, and Europe can pretend its monetary union is still a viable long-term option.
More on Europe's lecturing of how the world should run itself:
By allowing its tightly managed currency to rise, export giant China would also let other Asian currencies, now kept competitively low, to rise, and boost demand in Asia.
This could help compensate for lower demand in advanced economies as they curb government spending. In Toronto in June 2010, G20 leaders, facing market concern about rising debt, agreed to halve budget deficits by 2013.
"The EU considers that the G20 should focus on ... fiscal consolidation following the Toronto commitments and in particular the need for the U.S. and Japan to adopt credible medium-term fiscal consolidation plans," the document said.
The EU itself is fiercely consolidating fiscal policy to regain market confidence in the sustainability of its policies.
"Fiscal consolidation is a top priority for all countries in the EU, even though the extent of necessary adjustments differs across the countries," said the document, endorsed last week by EU finance ministers.
While Greece, Ireland, Portugal, Spain and Italy are under most pressure from markets to reduce budget deficits, the euro zone's biggest economy Germany expects a deficit of just 1.5 percent of GDP this year and a balanced budget in 2014.
Following last week's warm reception of Tiny Tim by a very antagonistic Europe we are quite positive the US Treasury department will promptly jump to satisfying a sinking Europe's demands.
That, and of course China, which just loves being told what to do...
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When do the missles start flying?? Krugman needs death and destruction to spur economic recovery...
Krugman's right, if the missiles hit his house. While he's in it.
Exactly.
And here's the ECB today after feasting on Euro junk bonds. Mr. Creosote Blows Up - YouTube
Is ANYBODY still listening to the liar idiot tribe member Jeethner ??
Kind of amazing, actually.
Geithner, the ugly american, goes to europe to support the troika bailout: he came, he saw, he concurred, and hopefully will be thrown out on his ass.
Missles will reduce the number of consumers therefore reduce growth.
You need more people to get growth.
Soooo ... start enjoying your sex life and procreate.
jal
Another sign we've entered de-globalization or is that debt deflation?
Lol, I would like to call upon the rest of the world to "live in peace and harmony".
So, just what is China supposed to do to "boost consumer demand"? Is that solely the role of their exchange rate? What exactly are they supposed to be suggesting here? Do they expect China to immediately float the Yuan and simultaneously QE5000 in order to bring about this consumeristic utopia in China which will gloriously and magnificently save the world?
China is not printing either, theyre raising rates.
Floating Yuan is an general idea for almost 10 yrs, but the wonders are needed now ...
China raises the interests, shrinks the M2, fights the RE bubble with property taxes, raises the reserve requirements for the banks - and still suffers 6 % inflation. But, they are trying at least. Bernank makes them poorer every single day. Lot of T-bonds there.
Some wonder must happen tommorrow. Wizzards are working on it - BOOM!!!
I'll take a stab at those questions.
The Chinese are encouraging their citizens to buy gold. In the West, they are discouraging their citizens from buying gold. When this blows up, and central banks ramp the price of gold, China's standard of living will go up, along with domestic demand. Unfortunately, ours will go down. But you can't bake a cake without breaking a few eggs.
They are expecting you to buy equities with all the other good little lemmings and then after the inevitable collapse, swallow the lies that your "greed" in owning a flat screen TV or an SUV caused all of this. They expect you to call them Maestro and adore their skills at saving us from all of the events they brought about.
I'll buy both parts as the plan. So then what does that make me? I've planted a flag in China, bought a bit of gold and silver, and left the US with my employable skillset. I must not be a "patriot". How long until there are no "patriots" left with either the tools or the desire to support the failed states?
"Any sufficiently advanced incompotence is indistinguishable from malice."
-Grey's Law
Power is shifting westward:
Asia = land of opportunities
America = old money
Europe = communists
Middle East/Africa = China before industrialization
Australia = the biggest fucking housing bubble on earth
China would disagree.
You know ... if you go far enough to the West, you wind up in the East.
Is that what you meant?
Thomas Friedman said 'The Earth is Flat,' so there.
FAULT BITCHEZ!
india has abundance of rotting food grains, Is greece willing to exchange them for greek GOLD Drachmas?
Let 'em eat (rotten) cake.
on the United States and Japan to tackle their public deficits."
Right. Won't happen. Not in a million years. Doing so would mean epic deflation. GDP would crash 15% or so if deficit were to be cut to 0. No way the congress critters do that.
Does anyone see the irony of the EU complaining about US public deficits after US tax dollars were used to bail out their banks which they allowed to be leveraged 50 to 1?
This is all show. These public statements are just a puppet show.
Exactly. The tribe just keeps using different "reasons" to make the same play over and over and over again.
Giving them our money.
Goldman Sachs helped the Greek government to mask the true extent of its deficit with the help of a derivatives deal that legally circumvented the EU Maastricht deficit rules. At some point the so-called cross currency swaps will mature, and swell the country's already bloated deficit.
http://www.spiegel.de/international/europe/0,1518,676634,00.html
Europe telling Geithner 'Fuck off back to your own brokeass nation, and BTW no we are not printing Euros'! The age of print and pump got the brakes put on.
How soon we all forget Lord Lloyd has a defense attorney.
The Euro will increasingly fall against the USD in the coming days and weeks. http://bit.ly/nHbHy1 http://bit.ly/oYIfxA
1 worthless fiat currency may rise or fall against another worthless overprinted worthless fiat currency, till the wheels fall off.
Tyler, as you know the US has been playing this "tune" for a long time...why is it "wrong" when the EU is playing the very same "song"?
Second, while the US is expanding their fiscal balance sheet Europe is consolidating theirs (and remember the aggregated EU fiscal deficit is far smaller than the US)....
Still Tyler is barking like a mad dog at both approaches.
What do you want Tyler?
What is your position?
Is it just to "talk-up" gold?
I'm confused over your thinking.
Piss off, troll.
Gold hasn't needed a "talk-up" by anyone over the last 10 years and doesn't need anyone to talk up gold now. It will do quite nicely on it's own thank you.
stateside
Correction: Gold hasn't needed a "talk-up" in 5000 years.
Average lifespan of a fiat currency: 27 years
Fiat always fails. Fiat is incompatable with human behavior. "By 1455, after over 600 years, the Chinese abandoned paper money due to numerous problems of over issuance and hyperinflation." (Wiki)
The USD is the currency of the largest, richest, and most powerful country in the history of mankind. That only bought the USD 40 years since we fully left the gold standard before it's come to be pretty much out of gas.
Gold doesn't need any help.
You're just fucking confused, period.
Look, you stupid fuck - I'll explain it to you.
The "tune" is the same everywhere. And it's not "the US" or "Europe" or any of that drivel.
It's the Bankers against the Citizens.
Nationalities don't count at all.
They're in power (everywhere) and they're stealing our money and giving it to the tribe.
Clear, stupid fuck?
Comrade ManufacturedOpinion is probably what you listen to. You are talking like Marx and are using the same language.
Bankers against Citizens....
Communist PIG!!!!
I don't get it. If you unpeg your currency from the dollar, as Saddam Hussein and Qhadafi did, you get in serious trouble. But if you peg your currency to the dollar, as China does, you get nagged to "stop doing that".
What a bunch of dumbasses. They make tax-dodger Timmy look with it.
just another day in the central bankster-orchestrated dog & pony show
wouldn't it be "funny" & also strangely "coincidental" if benzelbub wraps up the upcoming 2-day FED meeting and sez:
L0L!!!!!!!
I laughed yesterday when some politician on the Sunday talking heads show said 'We've cut $1 trillion dollars 10 years from now....so we're good'.
I had a serious face-to-face with Mrs. Smiddy last night and we agreed to cut $60 trillion from the family budget over the next ten years. So we're coming into money and volunteer to help you guys out in 2021.
EU int rates = Zero for years to come.....
....the entire Globe seems to be in a decade long stagflation cycle, eh?
They are all cooperating in kicking the can, and are going to try a reset, but you can't sustain a system based on debt and growth when populations are aging. The can forgive some of the debt, and they can ramp the price of their gold, but they can't get mom and pop to start buying in retirement. Unless they start dying off, you can bet on this lasting for multiple decades.
hilareous to see how all the crooks give each other lessons in morality.
Geithner going to Europe as an economic advisor is like having an end of the line heroin junkie as an Alcoholics Anonymous counselor.
Or maybe a wolf in charge of the henhouse.
How in the world can we return to building Socialism if those damn Septics don't return to take their rightful place as the buyers of last resort? Pass the bottle of Avian bitte:)
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