Friday, 10 June 2016

Germany's political elites, narrow unenlightened self-interest

This is why German political elites won't change their unreasonable stance towards the Periphery. And until that capital account starts shrinking dramatically, things are not likely to change.


Source: http://www.tradingeconomics.com/germany/current-account-to-gdp

Also, the European Commission Macroeconmic Imbalance Procedure states that ALL COUNTRIES have to meet the following constraints: a) The three-year average of the current account balance as a percentage of GDP should remain within the boundaries of -4% and +6%. b) Private sector debt as a percentage of GDP should be less than 133%. c) Private sector credit flow as a percentage of GDP, consolidated, should be less than 14% of GDP d) General Government Sector Debt as a percentage of GDP should be less than 60%. We clearly see that there's a double-standard.

Someone asked the EC on this issue. And the answer was: "the indicators and the thresholds should not be read in a mechanical way." They're psychopaths anyway, so hypocrisy is built into their thinking & speech. For more on this, read this great piece http://chartalismo.blogspot.ro/2015/02/respuesta-de-la-comision-europea.html

No comments:

Post a Comment