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Is there no end to Euro problems?


just john

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As I see it there will only be an end to the problems when ....There is a Unites States of Europe .. Probably as they will foot the bill for it with a German President With taxes set for the whole of the EU by a German run Central Bank and strict work hours and directives laid down to ensure that people are hard working and productive .

Anything else ...kiss it goodbye !

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No (to answer the question in the title).

I can understand why the eurocrats did not permit Greece to have a referendum as they would have rejected the 'rescue plan'. (Now they have as PM one of the guys who fudged the figures to get into the Euro).

However without popular acceptance there is no hope of their (of of the Italians etc) obeying the obligations demanded of them.

So the euro in its current form cannot last. It is a political rather than economic construct.

---

On a different level the black potential apprentice, on Monday night's Lor' Sugar's show, remarked "Old people like to spend their money quickly as they won't be around long."
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[quote user="Renaud"]On a different level the black potential apprentice, on Monday night's Lor' Sugar's show, remarked "Old people like to spend their money quickly as they won't be around long."[/quote]

Ah, out of the mouths of babes![:D]

I'm beginning to think that the boy has a point.........

Might as well spend it whilst it's still worth something, I suppose?

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The release by Moody's lowering the assessment of probable official support in the event of insolvency problems at 12 German Landesbanken, see link below, indicates that the health of local banking in the Länder has inherent problems.

Informed opinion associates such fiscal and solvency issues to the multiplicity of exogenous and endogenous factors compounded by the political indecision commensurate with a system of proportionate representation.

http://www.moodys.com/research/Moodys-takes-rating-actions-on-12-German-Landesbanken--PR_226714

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The Landesbanken have been the playthings for the politicos pet projects for years, and they've been insolvent for years!

Did you see this morning's BdF bond issue. 3.79%. Ouch. Double the UK/DE rates. About where Italy was 5-6 weeks ago.

Bets on how long the Dwarf lasts?!!!!!
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The eurozone  itself is not in too bad a state but as Dennis Turner of HSBC has said for years that a man with his head in the oven and his feet in the freezer is, on average, comfortable.

Germany and its close neigbours run a trade surplus but can only do this because others run a defecit. (you cant have a lender without a borrower).  Rather than bail out in taxes the Germans could stimulate domestic demand and pull in imports from the other EU states, stimulating local growth and reducing defecits.  Trouble is, no one wants Metaxa brandy or retsina, you can only drizzle so much olive oil and who wants a Puegeot, Citroen or Renault when you can buy BMW, Mercedes or Audi.

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Over the last year faceless merchant bankers have brought down the governments in Ireland, Greece and Italy. I suspect there will be more to come. I remember black Wednesday in the UK when one sole currency trader almost brought the UK to the point of bankruptcy.

Now I am not saying that Mr Berlusconi was such a good guy but can it be right that the elected governments of Europe are being changed by these faceless people. The ballot box is becoming rather redundant.

The Euro is likely to survive but not before some people have made a pile of money speculating on it and put the lives of so many people into a downward spiral.

In my youth I would have protested on the streets about this. With age comes the realism that as individuals we can just be spectators.
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Taking out the equation the Hausfrau's holier-than thou attitude (which coming from a country that has failed to meet the EUR criteria every year is a bit rich). Why won't the ECB print EUR1trillion and stop this mess in it's tracks.

Meryn King said QE was 0.5-0.75% on UK inflation the rest was imported and VAT increase. That is not exactly Weimer Republic standards.

BoE spent EUR 200billion. To date the ECB has done the same buying useless bonds from Greece, Ireland and Portugal.

Someone should tell Merkel to grow some sphericals, face down Deitmann, and stop only thinking of her political skin. The world is rapidly going to hell in a handcart. Do something woman!

Long meeting in Germany today. Rant over.
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not quite as rich as http://www.fundweb.co.uk/uk/german-finance-minister-predicts-end-for-sterling/1041797.article

the finance minister says the day where the whole of Europe was united under a common currency would arrive “faster than many people believe today in the British Isles. . .  Gawdelpus going to hell in a bucket[:-))] (even less comfortable than a handcart)

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The New York Times reports saturday that there is a concerted "pullback" on "european sovereign junk bonds".

Apparently in their wisdom offloading is better than ""trusting"" the poisonous dwarf and his mini-megalomaniac ravings.[:D]

http://www.nytimes.com/2011/11/19/business/global/lenders-flee-debt-of-european-nations-and-banks.html?_r=1&nl=todaysheadlines&emc=tha25

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Perhaps "mutti" realises that the problem is not a liquidity issue but a solvency issue.

Letting the printing presses rage would just be the final straw for the credibility of the ECB.

Now basically "mutti" does not have a solvency problem so she can enjoy the fantastic opportunity for a little bit of Lebensraum.

At the moment the periphery eurozone pigs can keep themselves temporarily afloat by contracting higher yields BUT if the Reuters report is a reflection of investor sentiment then it may be that we are approaching the tilt point where investors will not cover the bond issues at any yield.

Well perhaps not...I can remember making 10%/month in Buenos Aires providing USD with a local currency being devalued regularly twice a week.

Bolivia was worse during this period  in the 80s; a walk to the main square in Villazon from the border crossing taking with a coffee maybe 40 minutes meant that on return down the hill the prices had been remarked.

Interesting times!

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[quote user="pachapapa"]

Perhaps "mutti" realises that the problem is not a liquidity issue but a solvency issue.

[/quote]

Totally agree, but it's transformed into a liquidity issue, which is effecting the solvency of some nations. Particularly countries like France who have manically short maturity dates.

Tail wagging the dog.

Everything by the text book and never grasping oppurtunities. It's the "model". You can fly the plane into the hill, as long as you follow the model. (or "I was following orders"!) Ho Hum, that'll be Germanic.
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There is no end to the euro problem as long as the euro exists. The euro is the problem. 

Since its inception, the euro has been a disaster waiting to happen, and now it's happening.  What governments ought to be doing is to look for an orderly way of dismantling it.  If instead they fight to preserve it, e.g. by throwing more and more borrowed money at it, it can only get worse.

You can have a single market without a single currency, but you cannot successfully

have a single currency unless you have a single government. 

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[quote user="woolybanana"]

[quote user="allanb"]you cannot successfully have a single currency unless you have a single government. 

[/quote]

[/quote]

Which is exactly what is needed by countries like the UK, who have been so long dominated by inherited wealth and privilege.

Dismantle the old Imperialist nation states like the UK and France. Install a United States of regions with a real identity, such a Catalunya, Scotland  Euskal Herria

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