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Old 2011-12-22, 15:39   Link #18604
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Join Date: Dec 2008
Originally Posted by Anh_Minh View Post
They could withdraw from the EU altogether. They could refuse to transfer funds. There's a lot they could do. But don't, because, for now, they calculate that sticking it through will be less painful than jumping ship.
There's also inner political reasons: no one wants to be the politician responsible for the end of the Euro or the EU. Everyone's crossing their fingers, hoping that any disaster will at least be postponed until after their own terms.

About the calculations: well, the same people that implemented the Euro, saying it will be as good as the DM, promising that never, ever will one Euro member bail-out another, are now the ones advocating the rescue operations, arguing it will be the cheaper option in the end. Also a lot empty words are being tossed around when it comes to justify transferring German money on EU matters: "preserving the hope of a stable, prosperous EU", "peacful EU", etc.. Not really hard economical numbers, i.e. what I regard as "calculations". And even if transferring money is in our interest, politicians present us no numbers as to which extend this holds true. 100 billion? 500 billion? 2 trillion?
Maybe you think your neighbor should work harder for his kid's insurance, so you can keep more money to yourself.

Originally Posted by Kokukirin View Post
When your neighbour shares the same currency as you, and the said currency is on the brink of collapse. Saving your neighbour is surely in your interest. In terms of morals, Germany paying the bill for Greece is quite hard to stomach, but in terms of best interest for everyone, Germany still have to step in or everyone is in big trouble.
California went bankrupt not very long ago. The other states did not bail them out. Still we have the US Dollar. How does the bankruptcy of one member destroy a currency?

Originally Posted by Kokukirin View Post
Everyone knows Germany is the only country that can pay.
Germany is highly overestimated. We couldn't even save Greece, and we can most certainly not save Italy or Spain.

Originally Posted by Kokukirin View Post
And thus it has the most say on all matters regarding the Euro and ECB.
Wrong. It only has a very small voice in the ECB, it simply got overruled in all bond buying decisions by the PIIGS and France, the latter being most involved in Greece and Italy and thus being the strongest supporter of the bail-outs. Germany opposed them in 2010 but gave in eventually. The ECB president was French until a few weeks ago, now he's Italian. The new and old IMF directors are both French.
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