By Peter B. Meyer – 29th of April 2012
The thesis is simple: The crisis originates from spending more than earned from tax revenues and the shortfall was borrowed.
The remedy is even simpler: Cut costs, forbid budget overruns by constitutional law and oblige budget surpluses.
How to accomplish: Cut layers of bureaucracy, use monetary value backed system, and abolish minimum pay.
5 years of tinkering without substantial improvement, our leaders at least should have learnt; no recovery is possible, the preceding model of debt-fueled consumption was unsustainable. 'Stimulus' efforts were not only a waste of time and money, but also harmful; financial institutions that made bad bets by investing in sovereign bonds should take their losses with self-respect, instead of trying to get taxpayers to pay.
However still, citizens wait for government to figure out how to give them retirement incomes, healthcare, and full employment. But, politicians won’t solve economic problems they created themselves! They invented the euro; they set interest rates and lending standards. They caused the bubbles by lending too much for too long. They then ‘fixed’ the crisis, by lending more, at even lower rates, to the institutions who had just proven such bad guardians.
The thesis is simple: The crisis originates from spending more than earned from tax revenues and the shortfall was borrowed.
The remedy is even simpler: Cut costs, forbid budget overruns by constitutional law and oblige budget surpluses.
How to accomplish: Cut layers of bureaucracy, use monetary value backed system, and abolish minimum pay.
5 years of tinkering without substantial improvement, our leaders at least should have learnt; no recovery is possible, the preceding model of debt-fueled consumption was unsustainable. 'Stimulus' efforts were not only a waste of time and money, but also harmful; financial institutions that made bad bets by investing in sovereign bonds should take their losses with self-respect, instead of trying to get taxpayers to pay.
However still, citizens wait for government to figure out how to give them retirement incomes, healthcare, and full employment. But, politicians won’t solve economic problems they created themselves! They invented the euro; they set interest rates and lending standards. They caused the bubbles by lending too much for too long. They then ‘fixed’ the crisis, by lending more, at even lower rates, to the institutions who had just proven such bad guardians.
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