http://url.ie/cqs1
The Obituary of the Euro is being written as we speak!
Hurray!!
Lads time time to rejoin the sterling zone and the UK?
Quote from: Applesisapples on August 05, 2011, 02:47:35 PM
Lads time time to rejoin the sterling zone and the UK?
Aside from the irony I'm sure was implied, anyone that thinks the UK is in better shape than the eurozone needs to do their homework.
Maybe we should apply to become a province of Iceland.
Quote from: muppet on August 05, 2011, 02:49:46 PM
Quote from: Applesisapples on August 05, 2011, 02:47:35 PM
Lads time time to rejoin the sterling zone and the UK?
Aside from the irony I'm sure was implied, anyone that thinks the UK rest of the 'Developed World' is in better shape than the eurozone needs to do their homework.
fixed that
The euro will be OK, since it will become the de facto Deutschemark (with maybe France and one or two others on board too). It's the the countries that'll be fecked out of the euro that'll be in difficulties.
Quote from: Fear ón Srath Bán on August 05, 2011, 02:54:58 PM
The euro will be OK, since it will become the de facto Deutschemark (with maybe France and one or two others on board too). It's the the countries that'll be fecked out of the euro that'll be in difficulties.
A huge amount of the EU debt is owed to German, French and British banks.
If the debtor countries can't repay it (or default or restructure) those 3 countries will have their own new banking crises to deal with.
The only solution is to print.
Hungary is worth watching as a clue to where others might go.
Hungary has issues with truckloads of swiss franc denominated debt.
Not sure the UK is in the same position. Certainly not like it's a beacon of fiscal responsibility but they have more time on their side than the likes of Italy which could bring down the Euro. I wonder if it does go all belly up do the Germans/Dutch etc leave the Euro or is it the periphery gets booted out. The really interesting (in a seriously morbid way) will be Japan with something like 300%debt to GDP...
Quote from: Fear ón Srath Bán on August 05, 2011, 02:54:58 PM
The euro will be OK, since it will become the de facto Deutschemark (with maybe France and one or two others on board too). It's the the countries that'll be fecked out of the euro that'll be in difficulties.
Will they? If they get turfed out then they can reinstate their own currencies and devalue their way out of this mess.
We need to have a good balance of payments etc. Back to basics. We need a cheap currency a cheap workforce gives cheap competitive exports and we rebuild from there. No more pyramid schemes. No more borrow today pay back tomorrow economics or politics.
There's been a "little Englander" mentality plus their camp followers ( Reilly's rag among them) who have been predicting the end of the € since around the 3rd January 2002.
Anybody remember the orgasms in the "Irish" Indo when the new € dropped in value against the US $ in its early days ( to about 90 US Cents = now $1.43 or so).
Anyway if Ireland was to go back to a Punt , which would probably sink to around €0.50 we would still owe € debt so debt would be doubled overnight.
i think the idea is that ireland leaves and goes back to the punt, they default. might not quite tell them where to go on all of the debt, but think creditors would be doing well to get a greece style 21% reduction only (although doubt that will be the end of that)...as Capt Pat says you then have cheap labour after devaluation and while it would certainly curb the international holidays for everyone, there would be scope for the economy to grow at least - whereas currently there isn't even a flicker of light at the end of the tunnel
If things are working properly you can't have foreign holidays and expensive care unless you earn them. Polonius says no more borrowing.
Quote from: Capt Pat on August 06, 2011, 12:07:06 AM
If things are working properly you can't have foreign holidays and expensive care unless you earn them. Polonius says no more borrowing.
But what if everyone devalues?