For those countries that are selling capital to their neighbors, a much more efficient means of reversing the trend is to simply change their tax laws. Since the capital that the more powerful, central countries will be obtaining is likely to be located in the periphery countries, those countries should adjust their tax laws accordingly.
The one part of Warren Buffet's Squanderville versus Thriftville story that did not add up is that Squanderville residents might still have the "one person one vote" rule for residents (at least in the EZ this is the case). Those residents can tax land ownership all they want.
In the end, monetisation is the only means of having an expanding economy. Since bank loans (at least in theory) must be paid back, any loan creation is at best a zero-sum game. Since there is no organization in the EZ that can print money AND tax, the only hope they have for getting out of stagnation is for the Central Bank to find a way to increase the money supply w/o being paid back.
Good luck with that...
Although to some extent true (that a "Greece run badly outside..." would have problems, if it were not part of the Eurozone (Eu is okay, it is the currency that is problematic), then its currency would devalue against other currencies. In a purely independent sense, this would not normally matter (you still get less for your drachmas), but from a sociological point of view it does, in fact, matter. If Greece were using the drachma, then they would not have to lower wages, prices, pensions, etc. The drachma would buy less (particularly in imports), but the people would be more willing to accept that.
Without a significant taxing authority that can produce extra money at will (i.e. fiat currency), the problems of the EU are going to consistently face a "Grexit" situation. Somebody needed to tell the Eurozone countries that they could no longer run deficits. In addition, the ECB should have had the mandate of recapitalizing the banks in case of economic downturns such as the GFC.
In the end, Grexit may benefit the Greeks more than remaining in the Euro. Alternately, Greece could default (and if either not kicked out or if foreign bands are willing) and use the Euro w/o its own banking system. If they are already running primary surpluses (not counting debt payments) then the change in government finances would be minimal.
...and given the political climate, they may get it.
I believe that CEO's and others should be allowed to receive stock options. However, the system should be set as follows: 1. Options must be set at the higher of the price of the stock when the employee took the job or the price of the stock when the option is earned. 2. Options should not be able to be used until 3 years after issuance. 3. No corporate employee should be allowed to receive (other than stock options) more than 10x the amount of the least-paid employee working for the corporation (including jobs that have been outsources, such as cleaning et. al.) Exception to rule 3 is only for those who earn money for the corporation that is immediately realized (sales, sports figures, entertainers).
Congress is supposed to regulate interstate commerce, so why are corporations not required to be created as federal entities if they do ANYTHING outside of one state? Delaware should not be setting the (incredibly low) standard for corporations.
My daughter (25 yrs old now) has a friend in WV. We live in Massachusetts. In WV, the idea of reading is to read a summary of a novel. I don't mean that students read the cliff notes in order to avoid having to read the books; I mean that the SCHOOL MATERIALS are the cliff notes. It might be a good idea to check out STANDARDS in the schools. Also, it might help to determine if which state a student is in matters on those figures as well.
This is not to counter the claim above. Poorer communities are lacking in funds and thus resources. However, no matter how much money one throws at a WV school, if the students don't have to read any novels and have no exposure to Shakespeare, the money will not change the results of the tests on literacy.
End of 2005 $297,670, June 2011 $707,569
Where did the $400 trillion come from?
What happens if 'it' occurs? What would a modern deflationary free fall look like?
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