European Debt Crisis or Posture?

[pmaitra]

^^

I did not conclude that the Euro lost. However, I do see that the Euro is losing, exchange rate notwithstanding.

 

[sehwag1830]

We will see .

 

[panduranghari]

If we have so much debt here, it is because our democracy is turning bad. Politicians are used to promising lots of demagogic and irrealistic social programs so as to be elected, and I think that 's why debt is mostlyan "Occidental" problem.
Moreover, here, nobody was asking governments "where do you find that money", because people were happy to receive money from the government and to have a large welfare ! You know, in one of our History schoolbooks, I remember there was a map of the world, showing endebted countries, like the map posted on the top of the page. Nonetheless, Western countries (USA, UK, France...) weren't coloured, they were let in grey, like for instance Somalia in your map. So, in class, we spoke about the Indian debt problem, the Brasil debt problem, but in fact, the debt issue was our. And we are realizing it only now !
I hope it is not too late...

Sorry for my bad English, I'm French !

Well said.

Europe/USA for centuries exported inflation AND the consequences like unrest to the rest of the world. Now the circle is complete, no more inflation to export, they are suffering the consequences.

I just wonder when will Spain, UK, France, Netherlands start their colonisation again? I think they will definitely try their best.

 

[panduranghari]

No, that is impossible. Just look at what kind of country Japan was before 1945: a country which could built advanced fighter, battleship. In other words, Japan was already a industrilized country before ww2 while india was still a backword developing country. So, the best you can hope for india if you liberalized in 50s is: south korea, which I still highly doubt if you can reach that level.

You should try to understand that South Korea and India are completely different scale economies.

 

[panduranghari]

^^

I did not conclude that the Euro lost. However, I do see that the Euro is losing, exchange rate notwithstanding.

Exchange rate is the function of trade deficits. They have no bearing on the countries standing in terms of financial strength. Is China stronger economically than Canada? Yes its is, then why is the currency so low in valuation vs the USD.

Exchange rate mechanism is the policy adopted by the central bank of which ever country to make their exports more competitive and imports more dearer.