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Germany mulls cash injection

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  • #1

    Germany mulls cash injection

    Schroeder is planning to inject cash into the economy through direct aid and cheap loans that will create jobs directly. I like this idea. Japan is injecting cash into their economy by purchasing government debt, but I don't like that too much. I like this idea better, because the German government will have control over how the money will be spent. Good idea Shroeder

    BBC NEWS | Business | Germany mulls cash injection
    http://news.bbc.co.uk/2/hi/business/2840807.stm
    BBC, News, BBC News, news online, world, uk, international, foreign, british, online, service
    Last edited by DuncanK; March 12, 2003, 19:02.
    "When you ride alone, you ride with Bin Ladin"-Bill Maher
    "All capital is dripping with blood."-Karl Marx
    "Of course, my response to your Marx quote is 'So?'"-Imran Siddiqui
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  • #2
    Exerpt from the article:

    The finance ministry has reportedly been working on ways to introduce the cheap-loans plan without troubling the federal budget.
    I would be interested to see how they are going to handle this before I would judge weather or not it is a good idea.
    "I am sick and tired of people who say that if you debate and you disagree with this administration somehow you're not patriotic. We should stand up and say we are Americans and we have a right to debate and disagree with any administration." - Hillary Clinton, 2003

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    • #3
      Instead of using taxes or borrowing money they will just print currency.
      "When you ride alone, you ride with Bin Ladin"-Bill Maher
      "All capital is dripping with blood."-Karl Marx
      "Of course, my response to your Marx quote is 'So?'"-Imran Siddiqui

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      • #4
        Well, I guess they can't print money. I'm not sure how they will do it. It sounds good though.
        "When you ride alone, you ride with Bin Ladin"-Bill Maher
        "All capital is dripping with blood."-Karl Marx
        "Of course, my response to your Marx quote is 'So?'"-Imran Siddiqui

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        • #5
          Originally posted by DuncanK
          Instead of using taxes or borrowing money they will just print currency.
          Bad idea then. Inflationary and sets a bad precedent. This would worsen their budget problems, not help them
          "I am sick and tired of people who say that if you debate and you disagree with this administration somehow you're not patriotic. We should stand up and say we are Americans and we have a right to debate and disagree with any administration." - Hillary Clinton, 2003

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          • #6
            Originally posted by DuncanK
            Well, I guess they can't print money. I'm not sure how they will do it. It sounds good though.
            Good point! I forgot
            "I am sick and tired of people who say that if you debate and you disagree with this administration somehow you're not patriotic. We should stand up and say we are Americans and we have a right to debate and disagree with any administration." - Hillary Clinton, 2003

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            • #7
              This is what is going on in Japan, but I don't see how Germany could do the same thing.

              Since the BoJ has little room to manoeuvre on interest rates - which are effectively at zero - it has to seek more inventive ways of massaging the financial system.

              Doing something to mend banks is seen as vital, since reviving bank lending is the main way to pump cash back into the economy, and hence reverse the debilitating cycle of deflation.

              Under an inflation targeting programme, the Bank would set a target for inflation over a fixed period, and then seek to hit it by buying assets such as shares, bonds or property.
              http://news.bbc.co.uk/2/hi/business/2793005.stm
              "When you ride alone, you ride with Bin Ladin"-Bill Maher
              "All capital is dripping with blood."-Karl Marx
              "Of course, my response to your Marx quote is 'So?'"-Imran Siddiqui

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              • #8
                i think that the labor market is too rigid - business' cant fire when they start to lose money, and they cannot cut wages.
                "Everything for the State, nothing against the State, nothing outside the State" - Benito Mussolini

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                • #9
                  Yeah, definitely create jobs directly.
                  (\__/) 07/07/1937 - Never forget
                  (='.'=) "Claims demand evidence; extraordinary claims demand extraordinary evidence." -- Carl Sagan
                  (")_(") "Starting the fire from within."

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                  • #10
                    I heard the price tag of reunification was at 1 trillion dollars US.

                    That can't be true can it?
                    We the people are the rightful masters of both Congress and the courts, not to overthrow the Constitution but to overthrow the men who pervert the Constitution. - Abraham Lincoln

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                    • #11
                      The east is still behind the west in just about every catagory. Reunification is still costing money.
                      Try http://wordforge.net/index.php for discussion and debate.

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