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  • #342464

    Anonymous

    http://globaleconomicanalysis.blogspot.com/2011/12/poland-needs-to-spend-30-of-total.html

    The title is misleading but the situation is not.

    Poland Needs to Spend 30% of Total Budget on IMF Bailouts to EU as Result of Merkozy Summit

    Amazing but Poland's commitments after recent summits are to be 30% of our yearly budget! Where are this money going to come from is a great mystery to me as we are on a brink of reaching the constitutional debt limit of 55% of GDP.

    Recently Merkel had confirmed Poland as being "very important" to Germany's plans and our Prime Minster and Minister of Finance both talked about Poland's accession in 2015 so this might indicate that both of above reasons might be in play.

    However recent polls show that public does not like the idea of common currency (51% said no and only 17% yes) so why both of these gentlemen are so Euro-enthusiastic is far beyond me.

    They are among the fools who think that throwing money on the debt issue will solve it once and for all. It looks like we learn nothing from the history as we are going to be [email protected]#$ed again and unlike post WWII, this time by the western Europe.

    Poland has to pay 22 billion or 10% of the overall bailout.  Poland is not a wealthy country and yet it's being forced to bail out the Italians and Spaniards whose GDP and countries are more developed than Poland?  Madness.  >:(

    I suspect the Czechs, Slovaks and Balts are being forced to do the same

    #369070

    Anonymous

    Here is a comment from the blog post that you linked to:

    Krzysztof Kajetanowicz
    Sorry Mish but the info is wrong. The original source of the PLN 100 billion figure, Gazeta Polska Codziennie, is the mother of all tabloids. The newspaper, which has been created before the 2011 election campaign to say what Law and Justice is unable to say on its own behalf, makes is living by exploring the "conspiracy" around President Kaczynski's tragic death in April 2010. They claim it was an assasination. Good grief! The newspaper provides a constant stream of BS to everyone's amusement.

    Politicians talk about a more realistic figure of about PLN 22 billion / EUR 5 billion, which would be loaned out of the central bank's EUR 75 billion currency reserves (NOT out of the budget). To claim that any country could just dole out 30% of its budget to the IMF without a google check of the reliability of your sources is careless, to say the least.

    That is not to say that lending any of your currency reserves to the IMF pay a few more bonuses to Credit Agricole executives is anything else than a disgrace. However, this 30%-of-the-budget nonsense does not serve the case well, does it.

    With Poland's new friendship with the Franco-German motor of the EU, it is no doubt that Poland will be playing a role in the "saving" of the Euro, but the figures have to be realistic. 1/3 of the nation budget?! I don't think Merkel is that insane to force a commitment like that onto Poland, or is any Polish leader that insane to accept such an arrangement.

    Another quote from the same commenter:

    Krzysztof Kajetanowicz
    However our mainstream media are as stupid as anybody's, we would definitely notice, which makes this piece of "news" total BS. And we cannot just print up the zloty for two reasons. 

    The Constitution bans the central bank from crediting the treasury, so the best the central bank could do would be to buy treasury bonds in the secondary market (and that would also violate the constitution, just like the ECB's purchases violate the European Treaty).
    Second, we're an emerging market with an emerging market currency, which means that this sort of printing would send the exchange rate through the floor, an immediate currency crisis. We are not the Swiss, who have been able to triple their monetary base in several months without short-term repercussions.

    On the bright side, if Poland does help bailout the Southern Europeans, they'll be our debt bitches. Part of their repayment could be the transfer of some of their technologies and factory production to Poland.

    #369071

    Anonymous
    Quote:
    http://globaleconomicanalysis.blogspot.com/2011/12/poland-needs-to-spend-30-of-total.html

    The title is misleading but the situation is not.

    Poland Needs to Spend 30% of Total Budget on IMF Bailouts to EU as Result of Merkozy Summit

    Amazing but Poland's commitments after recent summits are to be 30% of our yearly budget! Where are this money going to come from is a great mystery to me as we are on a brink of reaching the constitutional debt limit of 55% of GDP.

    Recently Merkel had confirmed Poland as being "very important" to Germany's plans and our Prime Minster and Minister of Finance both talked about Poland's accession in 2015 so this might indicate that both of above reasons might be in play.

    However recent polls show that public does not like the idea of common currency (51% said no and only 17% yes) so why both of these gentlemen are so Euro-enthusiastic is far beyond me.

    They are among the fools who think that throwing money on the debt issue will solve it once and for all. It looks like we learn nothing from the history as we are going to be [email protected]#$ed again and unlike post WWII, this time by the western Europe.

    Poland has to pay 22 billion or 10% of the overall bailout.  Poland is not a wealthy country and yet it's being forced to bail out the Italians and Spaniards whose GDP and countries are more developed than Poland?  Madness.  >:(

    I suspect the Czechs, Slovaks and Balts are being forced to do the same

    Hungary too, but dunno where the leaders got that big money…

    #369072

    Anonymous
    Quote:
    Poland has to pay 22 billion or 10% of the overall bailout.  Poland is not a wealthy country and yet it's being forced to bail out the Italians and Spaniards whose GDP and countries are more developed than Poland?  Madness.  >:(

    I suspect the Czechs, Slovaks and Balts are being forced to do the same

    Balts not. Their economies are in terrible state. I am not sure of Slovakia or Czechs, but it's embarassing that Southern Europe has been so long in EU and now newcomer like Poland after being flattened in WWII and 50 years of communism has to save their asses.

    Meds are unfortunately bunch of lazy failures nowadays. They made study of comparison between Poland and Spain when each joined EU and how much their economies grew over certain period of time. By comparison, Poland's grew six times faster!!! Goes to show.

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