Home > Main > People finally starting to notice that German Taxpayers on the hook no matter what

People finally starting to notice that German Taxpayers on the hook no matter what

June 7, 2011

A few weeks ago I pointed out that German taxpayers are going to pay for a bailout in a post.  Either they pay for Greece and Ireland upfront, or they let Greece leave the Euro and pay for a bailout of their banking system.  There is not a scenario where the German taxpayer does not pay.

Today, John Mauldin has to go to a guy from the UMKC (University of Missouri-Kansas City – this economics school is the leading place for MMT in the country) to get someone to start to say this. Even then, the lede is buried somewhere in a few thousand words.

The German taxpayers will have to pay, period.   They think they can get away from this truth, but it will – it must – happen.

From Michael Hudson via John Mauldin via Pragmatic Capitalism:

“Hudson first lays the European crisis at the feet of banks and the institutions (ECB, IMF, and the EU) that are taking the Greek (and other) bank debt and putting it into public hands. He has a very real point. Then he points out that Greece is far better off just walking away, a la Iceland (at least read the last part of this post, on Iceland). And in polls he cites, 85% of the Greek people are against taking on the debt and paying the banks.

As I wrote last week, there is a revolution going on all over Europe, slowly building up as people realize that the “solution” being offered benefits banks and not German taxpayers or Greek creditors. Ireland will be watching. There is no easy way out. If there is a referendum on this new “troika” proposal, it is likely to lose. This is not over”

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  1. gf
    June 7, 2011 at 10:12 am
    • TC
      June 7, 2011 at 11:24 am

      He is – I agree.

      But I bet he has put MMT infront of a wider audience than any other person. He’s quoted Rob Parenteau, and the UMKC people several times. I think at this point all publicity is good publicity.

  2. Kris Smith
    June 7, 2011 at 8:00 pm

    Might be more interesting to know who is short the credit default swaps.

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