tag:blogger.com,1999:blog-3240565408401956331.post2791323144628151447..comments2023-07-08T05:49:38.333-04:00Comments on Larry Davidson's Thoughts on Macro and Other Stuff: Greasing the European UnionUnknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-3240565408401956331.post-60282730445648249782015-06-24T09:23:29.622-04:002015-06-24T09:23:29.622-04:00Thanks Fuzz. I would characterize it more like a P...Thanks Fuzz. I would characterize it more like a Pullme-Pushyou -- with 28 components. I would say, however, that the single market directives have been very successful. What were once 28 mostly less-competitive nations are now a considerable competitive factor for the US. I wrote a paper several years ago in which I pointed out that most of the low-hanging fruit was gone. With the easy parts over the EU is left with the harder challenges. One would expect that to be slow. It has taken more than 200 years for the US to gain more consensus among the states and still we have many things that can't be agreed. Larry Davidsonhttps://www.blogger.com/profile/10028971586654033347noreply@blogger.comtag:blogger.com,1999:blog-3240565408401956331.post-55329333695187468872015-06-23T20:57:15.231-04:002015-06-23T20:57:15.231-04:00It appears that the EU really helped the already h...It appears that the EU really helped the already high achievers in Europe and penalized them at the same time as they through the EMU...btw, the emu is a relative of the ostrich which also sticks its head in the sand when danger approaches...must support the under achievers. Sounds somewhat like the UN.Fuzzyhttps://www.blogger.com/profile/11438679628562995612noreply@blogger.comtag:blogger.com,1999:blog-3240565408401956331.post-54764887420245833332015-06-23T11:07:35.680-04:002015-06-23T11:07:35.680-04:00Thanks Tuna. As you say, it ain't over until i...Thanks Tuna. As you say, it ain't over until its over. Who needs reality TV when you can follow the news about the EU? Larry Davidsonhttps://www.blogger.com/profile/10028971586654033347noreply@blogger.comtag:blogger.com,1999:blog-3240565408401956331.post-91236776246499661342015-06-23T10:48:37.830-04:002015-06-23T10:48:37.830-04:00Dear LSD. To further your pun on greasy Greece, it...Dear LSD. To further your pun on greasy Greece, it has greased its own skids into the ol frying pan. It’s dealt itself a losing hand—one it’s been playing since Plato introduced his democratic democracy to the fig leaf wearers. A county can survive on grape wraps, ouzo, pita bread, and befriend-my-sheep social clubs for so long.<br /><br />Despite the forthcoming agreement involving early retirement schemes, pension and VAT reforms, labor deregulation, and more taxes on business and the wealthy—which many simply ignore paying and amounts to roughly more than a quarter of the country’s GDP—the socialists will revolt and protest—and force Syriza, the leftist party now in power, to renege on its promises to its people, the IMF, ECB, and EU. Otherwise, the country will partially default on the next round of debt payments, thus triggering another groundhog day repeat of Lucy pulling the football away from Charlie Brown. And the cha-cha-cha will continue.<br /><br />The EU would not be damaged economically if Greece’s 3% “contribution” to its economy slides away into the grease pit. However, the fragile EU’s pride might be hurt if it does, and particularly so if Great Britain decides to exit following its upcoming referendum on staying in the EU.<br /><br />It’s tough to manage sheep-chasers but herding a bunch of cats is even tougher. Tunahttps://www.blogger.com/profile/10963127416474394394noreply@blogger.com