Friday, August 12, 2011

German "Wise Man" tells US to raise taxes! EU Tyranny!

Here's some light relief before the weekend. Der Spiegel today published an article by Peter Bofinger, titled -  "Why the US should raise taxes" and sub-titled  - "German example shows way out of debt crisis".

Perhaps Professor Bofinger, has forgotten that the USA is not within the Euro Zone. Unlike Greece, Ireland, Portugal and Italy, therefore, as yet it is not compelled to accept German fiscal advice!

Below are the two concluding paragraphs from the magazine's article summary, linked here, I hope many of you in America will appreciate this food for thought over the coming weekend, remembering that it comes from a member of the government-appointed German Council of Economic Experts known colloquially there as the "Five Wise Men". The biggest nation behind the Euro currency, now delivering economic misery across the entire European Continent, which due to ongoing and longstanding incompetence from its political leaders, looks set to soon bring the entire world economy to the point of collapse:

Spending cuts are especially problematic from the point of view of growth if they are undertaken by countries like the US which already spend less than the average on education, infrastructure and social transfers. If a state that is already skinny is told to go on a diet, it can easily succumb to anorexia.

For most countries, therefore, the best way out of the debt crisis is to raise their excessively low government revenues to a reasonable level. In that respect, sovereign states are a bit like hotels: If you want to have four-star standards, you can't charge three-star prices. And if people in the US flatly refuse to pay more for their government, they will, in the medium term, find themselves living in a middling economy.

Just what President Obama needs to ensure re-election is this not, huge new revenues from the wealthiest, to squander and waste on yet more wild schemes such as state run health services and all the other trappings of socialists or even marxists!

Just as under Cameron in the UK, where what is not wasted on the EU, health and other socialist schemes is sent to the Horn of Africa as aid to people trying to live in a climate where nature has decreed human life is not sustainable in the medium, let alone the longer term!

Let us see what Professor Bofinger has to say in a few years time, when more than likely, Europe is subjugated and the dominant EUDeutschemark, prices German manufactures from world markets, and controlling the subjugated and serf-like southern Europeans, inflicts heavy tolls in policing and riot control costs, possibly even beyond the resources of those then running today's emergent EU tyranny.

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