Debt restructuring is inevitable

How can we solve the debt crisis in Europe? An expansion of the bailout passes the true problem and leads us only further towards a transfer union, which would significantly harm, especially Germany. Temporary loans could solve the problems of the European debt states. Nevertheless, it is not so simple.

Because the real problem is that, the debts are so high that they realistically can never be repaid. A debt restructuring is therefore inevitable. The crucial question is numbers the other countries, or private creditors, which participate? The taxpayers in donor countries rightly ask why they should pay for the bill.In a market economy is that investors on the one hand can take profits on their investments, on the other hand they also should bear losses. This suggests also involve private creditors in the costs.

Nevertheless, that is difficult, because then you have to be careful, not again trigger a Lehman scenario. It will probably not be avoided that for a debt restructuring at least in the handling of the banks in the euro zone, the taxpayer will be consulted. The danger, however, is large enough that the policy afraid this step. Ongoing process of increase the debt of Greece and Ireland with the parachute is the worst possible solution.

What is the situation with the middle class?

Middle class is not shrinking. Gloomy scenarios of a decaying middle class is fueling economic woes. With reality, this has little to do but these are the results of a recent study. Of course, these results are not very encouraging. However,exactly what the study shows.

It was recently commissioned by the Roman Herzog Institute. Accordingly, the share of the middle class to the whole society in Germany since 1993 is relatively constant and talk about 60 to 67 percent. In international comparison, this is a remarkable value. At the time of the crisis in 2009, there was even an opposite trend.

This resulted in an increase of the middle class by 0.6 percent. What could be in this case the futures forecast? A future forecast is that the middle class can be slowly eroded.

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