It's Not Whether You're Right Or Wrong

At Times Of Recession, Running A Budget Deficit Is Highly Desirable. Once The Economy Begins To Recover, You Have To Balance The Budget. But It Will Also Need Additional Revenues. Should The Government Not Receive Them, We Will All Get Punished With Higher Interest Rates.

The Generally Accepted View Is That Markets Are Always Right -- That Is, Market Prices Tend To Discount Future Developments Accurately Even When It Is Unclear What Those Developments Are. I Start With The Opposite View. I Believe The Market Prices Are Always Wrong In The Sense That They Present A Biased View Of The Future.

Now That I Have Called You On Your False Accusation, You Are Using Additional Smear Tactics.

The Financial Markets Play An Active Role In Determining What's Going To Happen, How The Economy Is Going To Function.

There Is No Question That A Breakup Of The Euro Would Be Very Damaging, Very Costly, Both Financially And Politically. And The Biggest Loss Would Be Incurred By Germany. Germans Have To Bear In Mind That, Effectively, They Have Suffered Practically No Losses So Far. Transfers Have All Been In The Form Of Loans, And It Is Only When The Loans Are Not Repaid That Real Losses Will Be Incurred.