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According to contemporary economic thought in the media : just exit the USD and start printing your own currency - it makes no sense to have entire US economy u

According to contemporary economic thought in the media : just exit the USD and start printing your own currency - it makes no sense to have entire US economy under one currency and not allowing separate regions to manage trade imbalances and remove their fiscal obligations trough monetary tools :D

SapphireSun 11y ago
That's different, this is money we owe ourselves rather than money we owe foreign creditors. Printing more dollars can be used to fix a trade imbalance. When the problem is domestic, we can just pass laws to clean it up. The question is who's going to be on the losing end of a renegotiation.
- deleted 11y ago
  [deleted]
- YokoZar 11y ago
  To be clear, instead of passing laws shirking the debt we could also "solve" the problem by inflating the currency (printing money to pay the pensioners).
  - emp_zealoth 11y ago
    Cynical part of me instantly thought how nice of a way it is to screw everyone except the uber rich
emp_zealoth 11y ago
Oh, so funny stab at EU. There is a difference between United States and European Union - you are actually transferring money between states - wealthier ones give up money to the poorer ones. Germany sucked Greece dry while "gifting" (unsustainable debt) them more money.
- moonchrome 11y ago
  That's bullshit. First of all there is redistribution within EU - there are structural and agricultural funds within member states that are geared toward development of less developed regions [1] Second the only thing Germans sucked from Greeks is the bad debt that they had to socialize to keep their banks from imploding (along with the France, Italy, Spain, Netherlands and a bunch of other countries). It might have put Greek economy on bad terms because they weren't competitive with Western Europe (consistent trade deficits) but Greeks improved their standard of living in the last decade mostly because of Euro economic credibility [2]. Meanwhile Greek economy was a small trade partner to Germany [3]. They already wrote off a significant part of Greek debt (50% on some of it) and they are unlikely to recover much from it down the road. [1] https://en.wikipedia.org/wiki/Structural_Funds_and_Cohesion_Fund https://en.wikipedia.org/wiki/Structural_Funds_and_Cohesion_... [2] https://upload.wikimedia.org/wikipedia/commons/e/ea/Long-term_interest_rates_of_eurozone_countries_since_1993.png https://upload.wikimedia.org/wikipedia/commons/e/ea/Long-ter... [3] http://4.bp.blogspot.com/-lN_Ft3vo4XU/T0wZW92xhrI/AAAAAAAAAUc/l4d9LcSoqyY/s1600/Greece-Germany.PNG http://4.bp.blogspot.com/-lN_Ft3vo4XU/T0wZW92xhrI/AAAAAAAAAU...

SapphireSun 11y ago

That's different, this is money we owe ourselves rather than money we owe foreign creditors. Printing more dollars can be used to fix a trade imbalance. When the problem is domestic, we can just pass laws to clean it up. The question is who's going to be on the losing end of a renegotiation.

deleted 11y ago
[deleted]
YokoZar 11y ago
To be clear, instead of passing laws shirking the debt we could also "solve" the problem by inflating the currency (printing money to pay the pensioners).
- emp_zealoth 11y ago
  Cynical part of me instantly thought how nice of a way it is to screw everyone except the uber rich

emp_zealoth 11y ago

Oh, so funny stab at EU. There is a difference between United States and European Union - you are actually transferring money between states - wealthier ones give up money to the poorer ones. Germany sucked Greece dry while "gifting" (unsustainable debt) them more money.

moonchrome 11y ago
That's bullshit. First of all there is redistribution within EU - there are structural and agricultural funds within member states that are geared toward development of less developed regions [1] Second the only thing Germans sucked from Greeks is the bad debt that they had to socialize to keep their banks from imploding (along with the France, Italy, Spain, Netherlands and a bunch of other countries). It might have put Greek economy on bad terms because they weren't competitive with Western Europe (consistent trade deficits) but Greeks improved their standard of living in the last decade mostly because of Euro economic credibility [2]. Meanwhile Greek economy was a small trade partner to Germany [3]. They already wrote off a significant part of Greek debt (50% on some of it) and they are unlikely to recover much from it down the road. [1] https://en.wikipedia.org/wiki/Structural_Funds_and_Cohesion_Fund https://en.wikipedia.org/wiki/Structural_Funds_and_Cohesion_... [2] https://upload.wikimedia.org/wikipedia/commons/e/ea/Long-term_interest_rates_of_eurozone_countries_since_1993.png https://upload.wikimedia.org/wikipedia/commons/e/ea/Long-ter... [3] http://4.bp.blogspot.com/-lN_Ft3vo4XU/T0wZW92xhrI/AAAAAAAAAUc/l4d9LcSoqyY/s1600/Greece-Germany.PNG http://4.bp.blogspot.com/-lN_Ft3vo4XU/T0wZW92xhrI/AAAAAAAAAU...