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  1. #1
    Shadow Senior Member Kagemusha's Avatar
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    Default Re: The continuing battle against the inevitable Euro area default

    It would seem half of the Euro countries have joined Finland in demanding cash guarantees from Greece, while Merkel and Sarkozy dream of "eurobonds". I cant understand what dream world the leaders of largest euro countries are living in? If the economies of Southern and Northern Europe have so different level of strength, how can they think that the North should just give everything up they have achieved with hard work, so the South can live as they please.

    Cant we just have a monetary Union without some delusional dreams of Federal State, when it is clear that majority of people in most European countries dont want that?
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  2. #2
    Senior Member Senior Member gaelic cowboy's Avatar
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    Default Re: The continuing battle against the inevitable Euro area default

    Quote Originally Posted by Kagemusha View Post
    It would seem half of the Euro countries have joined Finland in demanding cash guarantees from Greece, while Merkel and Sarkozy dream of "eurobonds". I cant understand what dream world the leaders of largest euro countries are living in? If the economies of Southern and Northern Europe have so different level of strength, how can they think that the North should just give everything up they have achieved with hard work, so the South can live as they please.

    Cant we just have a monetary Union without some delusional dreams of Federal State, when it is clear that majority of people in most European countries dont want that?
    Not really man the problem is that countries without there own currency are being attacked/shrewdly bet against and cannot use the usual means of preventing this problem Inflation/Devaluation.

    In effect the markets have quite rightly found that internal devaluation ie reduction of living standards or implementation of austerity does not work in a currency union hence the bailouts.

    The bondmarkets and interbank lending is forcing the ECB to act more like a normal central bank and less like it has up to now, hence the buying of bonds and the extension of liquidity to weak banks.

    Unfortunately the more it acts like a proper central bank the less people in the North like it.
    Last edited by gaelic cowboy; 08-19-2011 at 14:01.
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  3. #3
    master of the pwniverse Member Fragony's Avatar
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    Default Re: The continuing battle against the inevitable Euro area default

    Quote Originally Posted by Kagemusha View Post
    It would seem half of the Euro countries have joined Finland in demanding cash guarantees from Greece, while Merkel and Sarkozy dream of "eurobonds". I cant understand what dream world the leaders of largest euro countries are living in? If the economies of Southern and Northern Europe have so different level of strength, how can they think that the North should just give everything up they have achieved with hard work, so the South can live as they please.

    Cant we just have a monetary Union without some delusional dreams of Federal State, when it is clear that majority of people in most European countries dont want that?
    A north and south would be lovely, and we bail out the Irish because the Irish are sympathetic

  4. #4
    Senior Member Senior Member gaelic cowboy's Avatar
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    Default Re: The continuing battle against the inevitable Euro area default

    If you ask me there are several possible solutions to the problem of not having a nice even Euro.

    1 Divide the North and South.
    2 Unshackle the ECB
    3 Integrate fully (not the new Sarkozy/Merkel fuzzy announcement I mean a federal state)
    4 Eurobonds

    To be honest option one is the best really in my view but it would prob take maybe 5 to 10 years in order to not cause a major flight of capital out of the Eurozone.

    What there doing is trying to convince people in the South to accept lower everything along with higher inflation which balances the equation as a whole (Great for Germans the pressure is off them, not so great for Southern workers or there unemployed hence the rioting)

    The only reason Ireland is bucking the trend is because we have reduced our costs of doing business, we have low inflation and it's getting lower plus were exporting a lot outside the Eurozone
    We still however owe a lot due to the bailout which limits our growth potential due to austerity, Spain Italy Greece and Portugal have none of the things to be hopeful about that I stated are present in the Irish economy and all of the same bad ones.

    Also it helps when your population is highly mobile and also crucially young enough still to relocate both internally and abroad.
    Last edited by gaelic cowboy; 08-19-2011 at 14:36.
    They slew him with poison afaid to meet him with the steel
    a gallant son of eireann was Owen Roe o'Neill.

    Internet is a bad place for info Gaelic Cowboy

  5. #5
    master of the pwniverse Member Fragony's Avatar
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    Default Re: The continuing battle against the inevitable Euro area default

    You are the expert Gaelic Cowboy, why not introduce a second currency, no garlic allowed

  6. #6
    Senior Member Senior Member gaelic cowboy's Avatar
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    Default Re: The continuing battle against the inevitable Euro area default

    Quote Originally Posted by Fragony View Post
    You are the expert Gaelic Cowboy, why not introduce a second currency, no garlic allowed
    To be honest I think they will continue to prevaricate until the Euro explodes, if they ignore the problems for long enough there is no reason to think Germany itself cannot be affected.
    They slew him with poison afaid to meet him with the steel
    a gallant son of eireann was Owen Roe o'Neill.

    Internet is a bad place for info Gaelic Cowboy

  7. #7
    TexMec Senior Member Louis VI the Fat's Avatar
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    Default Re: The continuing battle against the inevitable Euro area default

    * uses sign language with the recent arrival from the Guangzhou hinterland, points at number three on the menu *




    Louis - and make it non-spicy and with ketchup, please.
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  8. #8
    Senior Member Senior Member gaelic cowboy's Avatar
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    Default Re: The continuing battle against the inevitable Euro area default

    Quote Originally Posted by Louis VI the Fat View Post
    * uses sign language with the recent arrival from the Guangzhou hinterland, points at number three on the menu *




    Louis - and make it non-spicy and with ketchup, please.
    Sorry were out stock
    They slew him with poison afaid to meet him with the steel
    a gallant son of eireann was Owen Roe o'Neill.

    Internet is a bad place for info Gaelic Cowboy

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