The Euro and Other Things...

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The Euro and Other Things...

Postby Screw » Wed Jul 08, 2015 3:15 pm

The father of the Euro was Professor Robert Mundell. It’s important to mention the other little bastard spawned by the late Prof. Mundell: “supply-side” economics, otherwise known as “Reaganomics,” “Thatcherism” – or, simply “voodoo” economics.

The imposition of the euro had one true goal: To end the European welfare state.

Here’s how it works. To join the Eurozone, nations must agree to keep their deficits to no more than 3% of GDP and total debt to no more than 60% of GDP. In a recession, that’s plain insane. By contrast, President Obama pulled the USA out of recession by increasing deficit spending to a staggering 9.8% of GDP, and he raised the nation’s debt to 101% from a pre-recession 62%. Republicans screamed, but it worked. The US has lower unemployment than any Eurozone nation.

As Obama scolded the European tormentors of Greece: “You cannot keep on squeezing countries that are in the midst of depression.” Cutting spending power only leads to less spending which leads to further cuts in spending power – a death spiral we see today in the Eurozone from Greece to Italy to Spain—but not in Germany.

“Not in Germany.” There’s the rub. Normally, a nation such as Greece can quickly recover from debt-induced recession by devaluing its currency. Greece would become a dirt cheap tourist destination once more and its lower-cost exports would zoom, instantly increasing competitiveness. And that’s what Germany can’t allow. Germany lured other European nations into the euro in order to keep them from undercutting Germany’s prices in export markets.

Restricted by the 3% deficit rule, the only recourse left for Eurozone debtors: pay the piper with “austerity” measures.

That cutting pensions, privatising and closing industries, slashing wages — in other words, “austerity” — or, to use the latest jargon, “reform” — is not just cruel, it’s plain stupid: it can only push a nation in recession into depression.
That’s not just theory. The Troika first imposed their vicious austerity measures on Greece in 2010. Greeks watched their annual salaries plummet to half of a German’s paycheck. Greece’s supposedly generous pensions have been cut eight times during the crisis, while two-thirds of pensioners live below the poverty line. Everything from Greece’s airports to harbours, the national lottery to prime publicly-owned real estate was sold off, while schools and hospitals were shuttered. And, for the first time since World War II, widespread starvation had returned. 500,000 children in Greece are said to be malnourished. Students fainting from hunger in frigid schools which cannot afford heating oil is now a common phenomenon.

This cruel “belt tightening,” the Troika promised, would restore Greece’s economy by 2012 (and then 2013, 2014, and 2015). In reality, unemployment went from a terrible 12.5% in 2010 to a horrendous 25.6% today.

Now, the Troika demands more of the same, a continuation of this disastrous policy.
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Re: The Euro and Other Things...

Postby aardvark_admin » Wed Jul 08, 2015 3:30 pm

I often wonder whether "globalism" has gone too far and whether countries (especially NZ) ought to look more at self-sufficiency in all things.

Okay, we can't compete with China in manufactured goods or Japan in vehicles -- or can we?

I recall the days when much of the stuff we now import was proudly "made in NZ" -- albeit that much of that stuff was utter crap.

Never the less, it kept folk employed and meant that unemployment was just a theory, not an engineered part of or economy.

The reality is that although we couldn't become totally self-sufficient, there are a snotload of things we *could* make for a "reasonable" price but which we simply import because it's marginally cheaper -- albeit far more expensive once you factor in the social costs of having armies of unemployed and a mountain of waste to dispose of.

Just what do readers think we *could* manage to produce ourselves -- in a way that is sustainable, creates jobs and removes our dependence on imports of "finished products"?

EVs spring to mind -- I'm still quite cross that, despite the fact we have the expertise, the energy and the innovators to create an indigenous EV industry, we simply lack the vision to do so. The government is promising reductions in greenhouse gas emissions to pre-1990 levels by 2030 but they haven't said how. Converting much of our commuter fleet to an EV would go a hell of a long way towards that -- wouldn't it?

Although we have become addicted to cheap undies, teeshirts, socks and shoes... I tend to think that there *is* a market for locally made stuff that would sell at a premium due to its durability and the fact that it's keeping Kiwis employed while reducing our international debt burden.

Just about the only thing we really *must* import is milk. Hell, it's got to be cheaper to import milk from UK and Aussie supermarkets than to buy it here! Oh... I guess our economy really is out of whack!
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Re: The Euro and Other Things...

Postby phill » Wed Jul 08, 2015 4:36 pm

aardvark_admin wrote:
EVs spring to mind -- I'm still quite cross that, despite the fact we have the expertise, the energy and the innovators to create an indigenous EV industry, we simply lack the vision to do so. The government is promising reductions in greenhouse gas emissions to pre-1990 levels by 2030 but they haven't said how. Converting much of our commuter fleet to an EV would go a hell of a long way towards that -- wouldn't it?



my guess is that bit is piss and wind reductions .. we have done a lot of research into feed for sheep and cattle and have come up with ways to heavily reduce the methane output .. so they will be claiming that as wonderous huge reductions in nz's carbon equivalent output .. great as the nit party were so against counting methane from farms as part of our greenhouse gas output anyway

we could make woolen clothing and call it duckdri or something ( we had something similar till some ceo decided china could make it cheaper and they and the shareholders would make more money but no one bought the new stuff )

we could make woolen carpet ( we had something similar till some ceo decided china could make it cheaper and they and the shareholders would make more money but no one bought the new stuff )

we could make woolen duvets and blankets .. we could trade them with the europeans for more tech stuff

we could make wood ckd furniture and have indigenous failed to achieve assembly piles

we could make innovatively designed personal electric transport vehicles .. and sell then to aussie as well

we could make innovatively designed mass transit electric rail transport vehicles .. and sell them internationally
(finished those ideas years ago )

we could make high quality baby food and sell it for premium

we could make high quality spec cheeses and sell them for heaps

ie we could value add to the max the shite we now pay people overseas to do with our superior grade raw products !!!
( ,,,,,,,, ....... A E I O U use em sparingly theres probably not enough )

i might live and eat in a sewer .. but hey look how many of these shiny things i have got
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Re: The Euro and Other Things...

Postby Screw » Wed Jul 08, 2015 5:13 pm

Ireland is a good example of Globalisation. They cut their company tax to 12% and Nokia, Plessey, Seimens etc rushed there to build big factories. Worked well until China came online and those companies just shut up the Irish factories and went to China. The Irish economy imploded and it's still a mess.

Greece had a vibrant economy too, not just tourism but a great manufacturing system. They made high quality furniture, wine, Organic food etc. Strangely although the Greeks are having a rough time with the Euro, the Euro notes are still being printed in Athens!

NZ has always been an innovating country with very skilled workers but the gubbies are only interested in short-term industries. Yes, we can't and shouldn't even try to compete with China, let them make the cheap stuff and we should concentrate on the high quality goods like Germany does.
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Re: The Euro and Other Things...

Postby phill » Wed Jul 08, 2015 8:07 pm

phill wrote:
aardvark_admin wrote:
EVs spring to mind -- I'm still quite cross that, despite the fact we have the expertise, the energy and the innovators to create an indigenous EV industry, we simply lack the vision to do so. The government is promising reductions in greenhouse gas emissions to pre-1990 levels by 2030 but they haven't said how. Converting much of our commuter fleet to an EV would go a hell of a long way towards that -- wouldn't it?



my guess is that bit is piss and wind reductions .. we have done a lot of research into feed for sheep and cattle and have come up with ways to heavily reduce the methane output .. so they will be claiming that as wonderous huge reductions in nz's carbon equivalent output .. great as the nit party were so against counting methane from farms as part of our greenhouse gas output anyway





well bugger me ... as we speak ... in comes timmy the toady ...
nb the last 3 paragraphs

Groser defends new climate change target
Climate Change Minister Tim Groser is denying claims that New Zealand isn't pulling its weight internationally.

8 July 2015

Climate Change Minister Tim Groser is defending the government's new emissions reduction target against criticism that New Zealand isn't pulling its weight internationally.

He announced on Tuesday the target that would be submitted to the United Nations later this year was 30 per cent below 2005 levels by 2030.

The current target is five per cent below 1990 levels by 2020, and the new target translates to 11 per cent below those 1990 emission levels.

Opposition parties and environmental groups says it isn't nearly enough and if other countries were equally reticent to cut emissions the result would be catastrophic climate change.

Mr Groser says New Zealand is in line with countries like the US, Canada, Japan and many others.

And he believes the government's long-range target of a 50 per cent reduction by 2050 can be achieved.

"We have been asked, like other countries, not to dream into the future but to put a figure down on the table as to what a future New Zealand government in 2030 might be held accountable," he said on Radio New Zealand on Wednesday.

"A heck of a lot of water is going to flow under the climate change bridge before then."

Mr Groser says he expects "a very sharp shift" in the next 15 to 20 years because the price of electric cars will come down and New Zealand's research into cutting agricultural methane will deliver results.

"The government has put tens of millions into that research ... they're talking about breakthroughs of 30 per cent to 90 per cent reductions," he said.

"New Zealand is already the most carbon efficient agricultural country in the world, if we didn't produce food for other people, then other people would produce it as much higher emission levels."
© 2015 NZN, NZCity
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Re: The Euro and Other Things...

Postby aardvark_admin » Wed Jul 08, 2015 9:17 pm

phill wrote:"New Zealand is already the most carbon efficient agricultural country in the world, if we didn't produce food for other people, then other people would produce it as much higher emission levels."

I wonder if he's factored in "food miles"?

We have to transport our food a *long* way to its key markets and I don't see any electric-powered aircraft or cargo vessels in our future any time soon. Even sailing boats seem to have fallen out of favour on the international trade routes.
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Re: The Euro and Other Things...

Postby Screw » Fri Jul 10, 2015 12:55 pm

aardvark_admin wrote:I wonder if he's factored in "food miles"?

We have to transport our food a *long* way to its key markets and I don't see any electric-powered aircraft or cargo vessels in our future any time soon. Even sailing boats seem to have fallen out of favour on the international trade routes.


Sea water batteries Bruce? Large buoys and floating lighthouses use 'em.
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Re: The Euro and Other Things...

Postby aardvark_admin » Fri Jul 10, 2015 1:04 pm

Ah, the environmentalists would have a field-day!

Think of all the metal salts that such batteries leach into the oceans! Think of the babies (baby whales that is).

Besides which, we don't have any of those saltwater powered ships yet... they're powered by good old "condensed and fermented dinosaur gizzards" so are bad for the planet (apparently).
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Re: The Euro and Other Things...

Postby Screw » Fri Jul 10, 2015 4:04 pm

Can't have sailing ships either because they would disrupt the wind patterns and bring all kinds of climate mayhem upon our craniums!

So Kiwiland is stuffed, up the creek, in de Nile, down the gurgler!
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