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From Cellbe

What really caused the eurozone crisis?

World leaders probably spent more time worrying about the eurozone crisis than anything else in 2011.

And that was in the year that featured the Arab Spring, the Japanese tsunami and the death of Osama Bin Laden. What's more, 2012 looks set to be not much different. But as eurozone governments hammer out new rules to limit their borrowing, are they missing the point of the crisis?

   * The eurozone has agreed a new "fiscal compact"
   * Eurozone leaders have agreed to a tough set of rules - insisted on by Germany - that will limit their governments' "structural" borrowing (that is, excluding any extra borrowing due to a recession) to just 0.5% of their economies' output each year. It will also limit their total borrowing to 3%. These rules are supposed to stop them accumulating too much debt, and make sure there won't be another financial crisis.
   * But didn't they already agree to this back in the '90s?
   * Hang on a minute. They agreed to exactly the same 3% borrowing limit back in 1997, when the euro was being set up. The "stability and growth pact" was insisted on by German finance minister Theo Waigel (centre of image). What happened?
   * So who kept to the rules?
   * Italy was the worst offender. It regularly broke the 3% annual borrowing limit. But actually Germany - along with Italy - was the first big country to break the 3% rule. After that, France followed. Of the big economies, only Spain kept its nose clean until the 2008 financial crisis; the Madrid government stayed within the 3% limit every year from the euro's creation in 1999 until 2007. Not only that - of the four, Spain's government also has the smallest debts relative to the size of its economy. Greece, by the way, is in a class of its own. It never stuck to the 3% target, but manipulated its borrowing statistics to look good, which allowed it to get into the euro in the first place. Its waywardness was uncovered two years ago.
   * 3/9 Italy
     Worst offender
   * 5/9 Germany
     First to break rules
   * 6/9 France
     Offender
   * 9/9 Spain
     Top of the Class
   * But the markets have other ideas
   * So surely Germany, France and Italy should be in trouble with all that reckless borrowing, while Spain should be reaping the rewards of its virtue? Well, no. Actually Germany is the "safe haven" - markets have been willing to lend to it at historically low interest rates since the crisis began. Spain on the other hand is seen by markets as almost as risky as Italy. So what gives?
   * So what really caused the crisis?
   * There was a big build-up of debts in Spain and Italy before 2008, but it had nothing to do with governments. Instead it was the private sector - companies and mortgage borrowers - who were taking out loans. Interest rates had fallen to unprecedented lows in southern European countries when they joined the euro. And that encouraged a debt-fuelled boom.
   * Good news for Germany...
   * All that debt helped finance more and more imports by Spain, Italy and even France. Meanwhile, Germany became an export power-house after the eurozone was set up in 1999, selling far more to the rest of the world (including southern Europeans) than it was buying as imports. That meant Germany was earning a lot of surplus cash on its exports. And guess what - most of that cash ended up being lent to southern Europe.
   * ...bad news for southern Europe
   * But debts are only part of the problem in Italy and Spain. During the boom years, wages rose and rose in the south (and in France). But German unions agreed to hold their wages steady. So Italian and Spanish workers now face a huge competitive price disadvantage. Indeed, this loss of competitiveness is the main reason why southern Europeans have been finding it so much harder to export than Germany.
   * ...and a nasty dilemma
   * So to recap, government borrowing - which has ballooned since the 2008 global financial crisis - had very little to do with creating the current eurozone crisis in the first place, especially in Spain (Greece's government is the big exception here). So even if governments don't break the borrowing rules this time, that won't necessarily stop a similar crisis from happening all over again.

     Spain and Italy are now facing nasty recessions, because no-one wants to spend. Companies and mortgage borrowers are too busy repaying their debts to spend more. Exports are uncompetitive. And now governments - whose borrowing has exploded since the 2008 financial crisis savaged their economies - have agreed to drastically cut their spending back as well. But...
   * Cut spending...
   * ...and you are pretty sure to deepen the recession. That probably means even more unemployment (already over 20% in Spain), which may push wages down to more competitive levels - though history suggests this is very hard to do. Even so, lower wages will just make people's debts even harder to repay, meaning they are likely to cut their own spending even more, or stop repaying their debts. And lower wages may not even lead to a quick rise in exports, if all of your European export markets are in recession too. In any case, you can probably expect more strikes and protests, and more nervousness in financial markets about whether you really will stay in the euro.
   * Don't cut spending...
   * ...and you risk a financial collapse. The amount you borrow each year has exploded since 2008 due to economic stagnation and high unemployment. But your economy looks to be chronically uncompetitive within the euro. So markets are liable to lose confidence in you - they may fear your economy is simply too weak to support your ballooning debtload. Meanwhile, other European governments may not have enough money to bail you out, and the European Central Bank says its mandate doesn't allow it to. And if they won't lend to you, why would anyone else?

www.peutereyaoutlet.com Yesterday

The north of modern 1 ∶ 0Shandong Luneng Shanghai Shenhua 0 ∶ 0Kashima antlers in Jeju Island the day before yesterday ,Tianjin TEDA team hard won a field on the South Korean team ,did not change the overall behind K League club over the nature of ,hogan.
Yesterday, as the AFC Champions League semi-finals in the lineup in the most luxurious Super Champion, the Shandong Luneng while continuing Tianjin ,but eventually ended up in defeat .
Just finished the Han 11 successive defeats ,new failure from the superior champion who began -- in the AFC Champions League ,the super absolutely no giants .Luneng luck only lose a ball as the superior champion ,in the country has a club called Shandong Luneng in the North Korean modern home and did not recur Tianjin TEDA .
In the passive situation, Shandong Luneng 0 to more than 1 opponents,franklin marshall, with the team in the AFC Champions League with the South Korean team game of the three-game losing streak .But it is good luck ,because the north of modern created so many chances to score , no LiverpoolTae Kim, evacuee, said,"All kinds of noise, somebody coughing, baby crying, but I say I have to go through. I cannot picky, you know. I appreciate people letting me stay like this in this situation. So thank God. I love America."Roughly 375,000 people were ordered to evacuate New York City’s flood-prone zones-most of them in lower Manhattan. More than 6,400 of them have sought haven in the city’s shelters to get basic things like a bed and warm meal.,but only scored one goal .
The game process and the Tianjin away at Jeju united in the game is run in the same groove ,the Koreans to occupy the initiative ,and created several times more than the Shandong team score .
Especially shortly after the opening ,Li Dongguo faces the goalkeeper had kicked the ball side,adidas pas cher, while the young goalkeeper Yang Chengze also becomes this competition Shandong team player he most attract sb.
,outlet hogan,for a number of fantastic saves to help the Shandong team to 0 to 0 score to keep the second seventieth minutes .But the Shandong team did not appear like Yu Dabao, Savior ,waste is one of the few shots ,,the South Korean team finally using the Shandong defence marking errors made here ,no defense of Pu Yuanzai in a small header in the restricted area easily scored the only goal of the game ,Shandong team in the final 0 to 1 defeat away to return ,abercrombie.
The audience was pressed the siege went opponents luck in the super is a luxury of the Shandong Luneng , Inter new signing Castellazzi and CoTae Kim, evacuee, said,"All kinds of noise, somebody coughing, baby crying, but I say I have to go through. I cannot picky, you know. I appreciate people letting me stay like this in this situation. So thank God. I love America."Roughly 375,000 people were ordered to evacuate New York City’s flood-prone zones-most of them in lower Manhattan. More than 6,400 of them have sought haven in the city’s shelters to get basic things like a bed and warm meal.,and failure to achieve teacher Ivankovic in his threatening played pretty offensive player ,in South Korea because of intense work ,on the field of foreign aid and international stars at the foot of the ball into a hot foot potato , missed the semi-finals.Tae Kim, evacuee, said,"All kinds of noise, somebody coughing, baby crying, but I say I have to go through. I cannot picky, you know. I appreciate people letting me stay like this in this situation. So thank God. I love America."Roughly 375,000 people were ordered to evacuate New York City’s flood-prone zones-most of them in lower Manhattan. More than 6,400 of them have sought haven in the city’s shelters to get basic things like a bed and warm meal.,mercurial vapor.
In the last five minutes of the match ,Shandong native Ivankovic fielded helped the country foot 3 than 0 beat South Korea gram Han Star Deng Zhuoxiang ,but Deng exhibit and a team as bad as the state after the game ,peuterey outlet,he almost did not touch the ball ,the game ends .
The match ,north of modern team made 15 shots, which has more than 5 will have chances to score, but it was only 1 in 0 .But the glad not to defeat Evan after is not convinced, he even think of each other to win because of had better luck .
The north of modern today perform better,air jordan, luck is better . He is not convinced, we try to surprise ,hollister france,but the whole north of modern home ,strength is very strong, so we did not realize ,rival state better .
Bet $2500000 foreign aid or skip  ?The media reported that ,for this season in the AFC Champions league tournament to obtain good results, in the four AFC Champions League group total investment to achieve about 350000000 yuan .
These huge investment ,including the wasted yesterday Shandong Brazil foreign aid Obinna .Known as the Brazil Eto the tall striker ,this took the Shandong Luneng price ,mercurial.But in this game ,Obinna not only for the creation of the Shandong team scoring opportunities ,and even the audience even once the shooting data are not ,even the explanation of CCTV expert Gong Lei also laments Luneng aid also need to promote a class .
In contrast ,the entire north from the same team Brazil foreign aid Ernie Neo becomes all the best players ,it is his assists to help the home team to win the whole of north .Reporter Fan Tianliang foreign aid to fight the shock Shenhua main floor flat Kashima boss Zhu to treat the Luneng loses the game ,Shenhua also did not win .
But in the home to 0 0 draw with Japanese Club Kashima antlers ,managed to avoid the AFC Champions League Super team across the board lost embarrassment .More importantly ,Shenhua boss Zhu Jun also need to Japan please Kashima antlers bosses club ,hollister.
Last night the Shenhua main floor and Kashima antlers game ,Shenhua team in the scene took the initiative, two foreign aid Riascos and sal Waylon individuals capable of creating multiple shots ,but the Japanese goalkeeper tenacious defense to keep a clean sheet .
The final stage ,eager to take all three points in the entire pressure on Shenhua team .The results in one other area of Zhengding ,assists to foreign aid guard of Dhaka and other central defender head banging together on the ground, lying on the ground for five minutes failed to rise up ,doctor to come to the emergency treatment time, Dhaka and even in a state of shock .
But it soon came to Dhaka ,and return to the field until the end .0 0 draw with may not be a good start ,but the Shenhua investor Zhu Jun, at least, save a large sum of dollars .Because before Zhu Jun had in micro-blog bet ,if the game Shenhua loses the game ,he will be in Japan nightclubs or please rival bosses .