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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

Euro zone news headlines

Posted by WARREN MOSLER on May 2nd, 2012

Typical day for euro zone news.
Slow motion train wreck continues.

Headlines:

EU Finance Ministers to Face Off Over Rules to Implement Basel Ill Standards
France’s Hollande Says He Hasn’t Had Parallel Talks With Merkel
Weidmann Says Reforms Are Best Basis for Growth, Zeit Reports
European Unemployment Rate Rises to Highest in Almost 15 Years
Euro-Region Manufacturing Contracts for a Ninth Month
German Unemployment Unexpectedly Rose in April Amid Crisis
Spain Can Finance Itself, Even If Expensive, Fekter Says

12 Responses to “Euro zone news headlines”

  1. GLH Says:

    Mr. Mosler:
    As I understand Professor Mitchell’s blog from Monday April 30,he seems to be implying that because of insufficient government spending the US is slipping back into recession. If I understand him correctly, I would be interested to know if you are of the same opinion. Also, if the US does fall back into recession with the propensity for austerity coming from so many sources, how long do you think it might take before we ever get more fiscal stimulus?

    Reply

    JCD Reply:

    @GLH,

    Just be clear, Fiscal Stimulus does not equal more spending.

    Fiscal Stimulus equals reduced taxation or more spending or a combination of the two.

    Reply

    WARREN MOSLER Reply:

    and i call it all removing fiscal drag

    Reply

    Monica Smith Reply:

    @WARREN MOSLER, How would you suggest reversing this trend line?
    http://research.stlouisfed.org/fred2/series/M2V?cid=32242

    WARREN MOSLER Reply:

    turn the graph upside down?

    why does it matter?

    Just count bodies in the unemployment line (way too many right now) and make fiscal adjustments

    WARREN MOSLER Reply:

    The latest numbers are troubling. Not sure if we slip into negative GDP for two consecutive quarters, but entirely possible.
    And the response could be tax hikes and spending cuts, the way things are going. Seems the entire world’s gone mad.

    Reply

    SteveK9 Reply:

    @WARREN MOSLER, Object lessons from Greece and Spain do seem to be slowly sinking in, at least in some places.

    Reply

  2. walter Says:

    Warren,
    1. Do deficits of ez member states add net financial assets to the economy?
    2. Do deficits of individual states in the US add net financial assets to the economy?
    3. Do deficits of the federal govt in the US add net financial assets to the economy?

    Reply

    WARREN MOSLER Reply:

    that all depends on what you call a ‘sector’ and how you define ‘the economy’

    any agent’s deficit spending adds net financial assets to some other agent as his go down.

    Reply

    walter Reply:

    @WARREN MOSLER, You can stick to the definitions of MMT with regards to ‘economy’ and ‘sectors’. Just make them explicit so that we have no misunderstandings about the terminology, semantics.

    Reply

  3. Geoff Says:

    Hey Warren, will you be doing the St. Croix Ironman this weekend? Say hi to Lance Armstrong ;)

    Reply

    WARREN MOSLER Reply:

    yes, the sprint event, and will do!

    Reply

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