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It can't happen here . . . ?


just john

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Grexit should happen when Greece reaches the inflexion point when the population determines that the cost of staying in the EURO equals the cost of coming out. As the population as a whole can not determine that point easily, it will most likely happen before then. Maybe after new elections on 17th June.

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As stated many times: whatever happens to Greece is completely irrelevant for the Eurozone: a drop in the Ocean. Hyped by UK and US media to divert attention from the real problems: the UK and the US. The Eurozone is working hard to solve the problems, the UK and US have only kicked the can down the road with massive money printing. At least the US admits to this fact and will start to cut spending after the elections in November.

The UK however is pretending to impose 'austerity'. There is no austerity when you spend 8% more than you earn and create 35% of your total (official) debt out of thin air. The biggest problem of the UK is that its population is in compete denial which makes it impossible to do what should be done.

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The pound is still well below its previous levels in 2007/08 and its recent recovery is not solely down to the Euro crisis, but the suspension of quantative easing, influx of foreign investors tied to UK M&A activity and recent surprising reduction in UK unemployment. According to most City currency analysts the euro/£ fair value comparison exchange rate is 1.30 to 1.35, so the £ is still undervalued and is likely to strengthen a bit further in due course.
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[quote user="Jako"]It proves that propaganda works. The pound is a save haven, like Pearl Harbor on December 6 1941.
[/quote]

Let me see if I've understood this correctly, the future of a new unstable intellectual currency (like the €uro) 
is stronger than established world currencies (like the $ or the £) ?

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That comes from the same Jako that said the euro would be worth 2 quid within a couple of years and that the entire currency markets were choosing to overlook straightforward publically available information on sovereign debt in favour of artificially protecting the £ and the $.  Good job he's not picking my Lotto numbers! 
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Don't mean to be picky and I only intend some light hearted banter, but I think you'll find it was 10th January 2011 (16 months ago) that you made the £ = 50 euro cents in the long run statement.  At the same time you said 'the chance of euro break-up is virtually nil', brave statements indeed...... 
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