Christine Lagarde asserts that while fiscal consolidation remains an imperative, macroeconomic policies must support growth. Fiscal policy must navigate between the twin perils of losing credibility and undercutting recovery. The precise path is different for each country. But to meet the credibility test, each country needs a dual focus: a primary emphasis on durable measures that will deliver savings tomorrow which, in turn, will help to create as much space as possible for supporting growth today — at least by permitting a slower pace of consolidation where possible. For instance — measures that change the rate of growth of entitlements, health or retirement.
Eurokleptocracy, gigaregulation, Antitrust Armageddon, and gigataxation, especially VAT, are the real causes of the European financial meltdown. Fourth Reich(EU), an unvoted illegal confederation, cannot protect Europeans from Eurokleptocrats, especially Graecokleptocrats, and police brutes, especially Graecocybercops. Fuehrer Merkozy condones the disgusting Graecokleptocrats who accuse dissident bloggers of treason, confiscate their computers, and lock them is jail! http://venitism.blogspot.com
Lagarde thinks monetary policy also should remain highly accommodative, as the risk of recession outweighs the risk of inflation. This is particularly true as (i) in most advanced economies inflation expectations are well anchored; and (ii) pressures from energy and food prices are abating. So policymakers should stand ready, as needed, to dive back into unconventional waters.
Fourthreichian monetary unification is the Trojan horse for overall harmonization of economic rules, policies, and laws in Fourth Reich. Any eurozone problem is interpreted as a consequence of the lack of harmonization and leads to another wave of a creeping harmonization. Fuehrer Merkozy frequently declares that coordinating tax policies and labor laws is not just about currency issues but also about political cooperation, which has to be deepened. In other words, more enslavement to Brussels, transforming the confederation to a federation!
Lagarde notes that micro-level policy actions to relieve balance sheet pressures — felt by households, banks, and governments — are equally important. We must get to the root of the problem. Without this, we will endure a painful and drawn-out adjustment process. Structural reforms will surely help boost productivity and growth over time, but we should take care not to weaken demand in the short term.
The freakish October-18 mafia robs computers and terrorizes the blogosphere with charge stacking! Why on Earth Fuehrer Merkozy, Durao Barroso, Neelie Kroes, Viviane Reding, and Cecilia Malmstroem of the European Commission cannot rein in Graecokleptocrats? If Fourth Reich cannot protect Greeks from October-18 mafiosi, who will? Greek dissident bloggers want back their stolen computers, their stolen files, their stolen personal data, and their stolen lives. Restitution is a basic right in a civil society. Brutal Graecocybercops should be abolished now. http://venitism.blogspot.com
Lagarde asserts Fourth Reich needs urgent and decisive action to remove the cloud of uncertainty hanging over banks and sovereigns. Financial exposures across the continent are transmitting weakness and spreading fear from market to market, country to country, periphery to core.
Lagarde points out three key steps that Europe should take:
* First, sovereign finances need to be sustainable. Such a strategy means more fiscal action and more financing. It does not necessarily mean drastic upfront belt-tightening—if countries address long-term fiscal risks like rising pension costs or healthcare spending, they will have more space in the short run to support growth and jobs. But without a credible financing path, fiscal adjustment will be doomed to fail. After all, deciding on a deficit path is one thing, getting the money to finance it is another. Sufficient financing can come from the private or official sector—including continued support from the ECB, with full backup of the euro area members.
* Second, banks need urgent recapitalization. They must be strong enough to withstand the risks of sovereigns and weak growth. This is key to cutting the chains of contagion. If it is not addressed, we could easily see the further spread of economic weakness to core countries, or even a debilitating liquidity crisis. The most efficient solution would be mandatory substantial recapitalization—seeking private resources first, but using public funds if necessary. One option would be to mobilize EFSF or other European-wide funding to recapitalize banks directly, which would avoid placing even greater burdens on vulnerable sovereigns.
* Third, Europe needs a common vision for its future. The current economic turmoil has exposed some serious flaws in the architecture of the eurozone, flaws that threaten the sustainability of the entire project. In such an atmosphere, there is no room for ambivalence about its future direction. An unclear or confused message will add to market uncertainty and magnify the eurozone's economic tensions. So Europe must recommit credibly to a common vision, and it needs to be built on solid foundations — including, for example, fiscal rules that actually work.
Plato and Aristotle asserted that different regimes produce different types of human beings, and regimes ought to be judged by the character of their citizens. In Fourth Reich, the growth of interventionist welfare state has damaged personal responsibility and integrity, fostered dependence, undermined families, rejected freedom, and promoted corruption.
Especially in Greece, the most corrupt country of Fourth Reich, political corruption is accepted as a normal thing, and most Greeks rely on graft, sinecures, cheating, incivility, nepotism, cronyism, cancer of socialism, jingoism, iconolatry, perjury, lies, and kickbacks. The character of modern Greece of October-18 Mafia is the opposite of the character of ancient Greece of Plato and Aristotle.
Fourth Reich is an illegal confederation that has no voted constitution, a flag no one salutes, an anthem no one sings, a Fuehrer no one can name, a parliament of prostitutes, a capital of huge bureaucracy no one controls, a currency that soon will not exist, rules of fiscal behavior that no member has been penalized for ignoring, a commission which is the Eldorado of corruption, brutal cybercops, and kleptocrats galore! http://venitism.blogspot.com
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