Tuesday, November 06, 2007




Germany Prepares Plan to Pay Back Debt Mountain

German Finance Minister Peer Steinbrück is preparing an ambitious project: He wants his government to pay off its public debt within the next 30 years. The plan would involve cutting numerous government subsidies and repealing a raft of tax credits.

... very risky if not handled "moderatelly" ...
... historically most of attempts of reduction resulted in depressions ...
... the deviance with real inflation is only about 3 percent ...
... a 12 % standard inflation and a 4 % prime rate should be the target ...
... consolidation of foreign debt within the union should be high priority ...
... not to be affected by the usual currency speculation lobby ...
... financial coverage can either/both come from fixed costs reductions ...
... online transition (swiss) and government telecommuting (many) ...
... and/or from increased population levels and revenues ...
... seems to be a problem applying to the us more than germany ...
... us now is at about 60% of gnp so a reduction here means 1929 bis ...
... and a non-reduction implies inflation and dollar depreciation ...
... just my five cents ...



# posted by intcoex : 1:20 PM




<< Home

This page is powered by Blogger. Isn't yours?

Subscribe to Posts [Atom]