ALLAHPUNDIT has the hilarious breakdown of the Krugman takedown here. Note that Estonia has endured much harsher austerity measures than Greece, and it now it is the only EuroZone country with a budget surplus, which makes the Krugman beatdown even better.
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It’s really a shame they can’t revoke Nobel prizes. I mean wtf did this clown get one for in the first place? The trade policy that caused the USA to lower tariffs and export their middle class via wage and environmental arbitrage. WELL PLAYED.
It’s really a shame they can’t revoke the entire Nobel committee, because they’re clowns.
Well played.
If Germany wasn’t buying the bulk of Estonia’s exports they’d be in the shit house with the rest of the crew. Estonia’s also received “stimulus” money from member nations. Add to that the entire population of Estonia is about the size of San Diego, their “boom” isn’t at all impressive and won’t last.
Careful, Ilves will kick your ass too.
Claiming austerity is working when member nations are pumping you full of Euros is delusional.
Fxtradex, can you point me to a link about the amount of Euros that Estonia has been pumped full of? Using google, I can’t find anything that says they have been pump full of Euros. Thanks.
http://www.tradingeconomics.com/estonia/exports
So they exported a lot? I misunderstood you then. It sounded like you were saying they were bailed out. I don’t see how exporting to the rest of the EU member states is a bad thing. Also, I don’t see where Germany is a huge trading partner…from your link: “In recent years Estonia’s exports grew significantly. The biggest share in Estonia’s exports are machinery and equipment (mainly wireless-network gear, wind generators), mineral products and agricultural products and food preparations. Main exports partners are Sweden, Finland, and Russia.”
” I don’t see how exporting to the rest of the EU member states is a bad thing. ”
It’s not as of right now. But consider the problems there right now. When austerity measures start to dip into trade with Estonia, it will be a bad thing.
On the contrary, it appears that Estonia has been giving Euros to the bailout facility, rather than taking. Again, would like to see where you are getting your information.
Estonia’s participation in the eurozone rescue fund would amount to some 1.995 billion euros.
“The sum is a third of our budget,” said Ester Tuiksoo, an MP from the opposition Centre Party.
Prime Minister Andrus Ansip’s centre-right governing coalition, which backed participation in the rescue fund staunchly, commands a majority of 56 seats in the 101-member parliament.
But the prospect of the currency bloc’s newest member — which has a reputation for prudent fiscal policies — having to pour money into the fund sparked anger in the former Soviet-ruled nation of 1.3 million even in the government camp.
Two dozen lawmakers skipped the vote, from both the coalition and opposition side.
Those from the left-leaning opposition Centre Party who took part voted against, along with some coalition lawmakers, but several members of the opposition Social Democrats backed the EFSF.
Igor Grazin, a senior lawmaker from Ansip’s Reform Party, underlined deep concerns about the EFSF by voting against.
“I can’t understand how the EFSF will save Europe and Greece. How Harry Potter beats Voldemort is something every normal person understands, but how the EFSF will bring Europe out of crisis is a fairy tale,” he said.
“The EFSF doesn’t solve problems, it only takes money,” lawyer and member of parliament Legal Affairs Committee Igor Grazin from the ruling Reform Party told parliament.
The government had insisted that joining the EFSF was a matter of European solidarity, a key issue for Estonia, which won independence from the crumbling Soviet Union in 1991 and joined the EU in 2004.
It also said the EFSF was crucial to protect Estonia from potential global financial problems in the future.
Estonia has emerged from a deep 2009 recession sparked by the global crisis, during which it launched a biting austerity drive.
Centre Party MP Mailis Reps said it was unfair for Estonia to have to dip into its coffers.
http://www.eubusiness.com/news-eu/finance-economy.ckz/?searchterm=estonia
The bulk of Estonia’s wealth comes from exports. Since joining the Euro, exports have increased largely because Euro nations have more trust in Estonia using the Euro. When exports sink, so will Estonia.
http://www.csmonitor.com/Business/Stefan-Karlsson/2012/0216/How-Sweden-busted-Estonia-s-economy
Estonia is almost entirely dependent on exports. Still looking for the trade figures with Germany. I know they’re here somewhere!
It’s cool. I misunderstood and thought that Estonia had received bailout funds. I understand they are completely reliant upon exports. Thanks for finding the info!
Nobel Peace prize winners make great warlords.
And they can use their hefty prize as a disciplinary tool by throwing it at aides.