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 Richmans' Trade and Taxes Blog

Saving Greece, Europe and the United States -- we're published in today's American Thinker
Howard Richman, 5/24/2012

Here is a selection:

It is not an accident that the Northern European peoples have trade surpluses and the Southern have deficits. Cultures where winters are longer and colder emphasize saving in order to survive. And so with interest rates the same across the eurozone, the Northern Europeans saved and the Southern Europeans spent, and, inevitably, the Northern Europeans loaned money to the Southern Europeans so that the Southern Europeans could buy the Northern products. The result was trade surpluses in the North and trade deficits in the South.

But loans from the North to the South can go on only so long. Eventually, the South gets too deeply in debt to qualify for more loans and can no longer afford to buy more products than it produces.

Follow the following link to read it:

 http://www.americanthinker.com/2012/05/saving_greece_europe_and_the_united_states.html