{"id":6388,"date":"2013-04-16T05:48:10","date_gmt":"2013-04-16T03:48:10","guid":{"rendered":"http:\/\/www.w-t-w.org\/en\/?p=6388"},"modified":"2013-04-16T11:06:50","modified_gmt":"2013-04-16T09:06:50","slug":"george-soros-questions-the-effectiveness-of-half-measures-in-the-eu-bailouts","status":"publish","type":"post","link":"https:\/\/www.w-t-w.org\/en\/george-soros-questions-the-effectiveness-of-half-measures-in-the-eu-bailouts\/","title":{"rendered":"George Soros Questions the Effectiveness of Half Measures in the EU Bailouts"},"content":{"rendered":"

There is a close parallel between the euro crisis and the international banking crisis of 1982. Then the IMF and the international banking authorities saved the international banking system by lending just enough money to the heavily indebted countries to enable them to avoid default but at the cost of pushing them into a lasting depression. Latin America suffered a lost decade. \u00a0Today Germany is playing the same role as the IMF did then. The setting differs, but the effect is the same.\u00a0 The creditors are in effect shifting the whole burden of adjustment on to the debtor countries and avoiding their own responsibility for the imbalances. Interestingly, the terms “center” and “periphery” have crept into usage almost unnoticed, although in political terms it is obviously inappropriate to describe Italy and Spain as the periphery of the European Union. In effect, however, the euro had turned their government bonds into bonds of third world countries that carry the risk of default. This fact was ignored by the authorities and it is still not properly recognised. In retrospect, that was the root cause of the euro crisis. Article\u00a0 \"cyprus2\"<\/a><\/a><\/p>\n

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There is a close parallel between the euro crisis and the international banking crisis of 1982. Then the IMF and the international banking authorities saved the international banking system by lending just enough money to the heavily indebted countries to … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-6388","post","type-post","status-publish","format-standard","hentry","category-finance"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t