martes, 20 de septiembre de 2011

THE CAUGHT EUROPEAN ECONOMY IN AN ERROR OF CONCEPT


The situation that we are living for the resolution of the economic-financial problems in the European Union, converges in the reflection that our economy is caught in a heap of errors of concepts and economic and financial theories that are not already of effective application, but that unfortunately the economists and politicians don't find alternative.

Even knowingly of this fact, the fights already continue almost fratricidal between the believers of some or other concepts to apply, and like it is demonstrating day by day they don't work neither some neither other, because in definitive they are counteracted, this is a natural effect in all the things of the life, one ascends and then low, in summer it is hot in winter it is cold, and this way everything works equally in this life, the bad thing is when one seeks to ascend and to lower at the same time, the result is that he stagnates in a step and there he stays, until it breaks the tendency of wanting to make the things without the due order. 

The thing is complicated because in the bottom, nobody tastes like certain science that has passed to arrive up to where we are, and if one doesn't have clear the starting point, neither one has clear the arrival point, said otherwise, if one doesn't know how we entered in this, neither we will know how to leave, that said the correlations doesn't work and when they take measures it is very probable that these they don't prosper because there is no correlation with the cause of the problem. Bad that it weighs me because it is known the dislike that I profess for the Chancellor Merkel, she is right when it sustains: It cannot get ready the debt with but debt" certain and believing in this maxim as in God, their theory closes in a single concept: to reduce debt.  

Well this seems and it is logical, we already have now a clear correlation we lack the other one the one that completes the reaction of lowering the existent debt, and here the divergences begin. For an economy like the German the thing is simple, with reducing its expenses he has enough, because its generation of revenues or commercial balance continues being positive, in spite of the stop of the economy, so without making anything but with the time it will reduce its debt. 

But what it passes with the other countries, in them the thing doesn't work this way, without entering in you criticize of the because of him as, the reality is that its debts are a reality and they are eating them to him every day more.  And the German recipe because it doesn't work, because most of the commercial scales of these countries are deficit, their balances are negative, and therefore if they make what Germany promulgates, they get in debt more and more, because as they go reducing expenses, he goes them going up the unemployment, he deteriorates the consumption and therefore the generation of wealth, and the worst thing, the interests continue ascending and being had to pay. 

Incited by the pressure of Germany and of the markets, (that they also continue without understanding it until they are left without hens of the eggs of gold to survive) to the countries problematic calls are demanded hard sacrifices now, that which I find well, but it lacks the corresponding reaction. To the sacrifice of the expense reduction, it should be made the reactivation of the economy parallelly, otherwise to the action of reducing expenses is counteracted with the one of reducing revenues, result, the action is null completely, the objective, the debt continues here. 

For that reason I understand, Obama tries to adjust the two solutions it is indispensable, but it seems that Europe doesn't want to understand it, maybe be not the very Keynesian form of Obama the one that it would like Europe, that I can understand it, but I find to reject the idea of obtuse total, he will be necessary to sit down and to listen and to speak at least it would be the logical thing, and not to act for pure conservative selfishness as they make Germany, Austria, Finland, and the American republican party, this is very not very encouraging and he says very little in favor of the western democracy. 

And I eat final point a warning to the government of my country Spain; you are making a mistake as always. Before to increase and to recompose taxes it is necessary to create who pays them, otherwise that will make it is to catch a miserable bread for today and a lot of hunger for tomorrow. 

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