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The Euro is done

Discussion in 'Issues Around the World' started by ethics, May 14, 2010.

  1. Swamp Fox

    Swamp Fox Veteran Member

    Hege fund managers are thinking what I'm thinking, namely, the Eurozone will break up somehow. Thing is, the Central Bank is more powerful than any one of the funds, though it's not more powerful than the financial market put together.

    I'm not convinced the Bank will win, especially if the problem spreads. In the end, if the Bank begins buying up all the bonds of the PIIGS, it will be printing money so the Euro will be worthless. So it's stuck between the proverbial rock and a hard place.
  2. Swamp Fox

    Swamp Fox Veteran Member

    A British economist is describing the Eurozone as either "a train crash in slow motion, or a train crash in slow motion that's now speeding up."

    I agree. And I also agree that the crisis-ridden countries should just go bankrupt, so they have to make the painful restructuring changes.

    He also says that the Germans are doing well, which is true, but don't forget the giant of North America has a higher labor productivity and higher GDP per capita, at least until recently.
  3. Premier

    Premier Well-Known Member

    A decade ago I was in Germany on a business trip and visiting a medium sized machinery manufacturing business, over lunch the CEO asked me about Australian taxation and complained that in Germany he even pays a church tax and his company car was taxed if used privately to the point where it was more practical to own a car for private use, and so on.

    We have a "Fringe benefits tax" on private use of company owned vehicles and other non-salary benefits but I understand that in Germany the overall tax package is much higher than here.
  4. John R. Beanham

    John R. Beanham Typical Aussie Male


    Keep in mind that even Germany is in debt to about 72% of GDP.

    Any German/French/EU bail out of the EU basket cases will find its way into borrowings of the 'bailers'.

    The problem is simply being shifted from one pocket to the other.
  5. Swamp Fox

    Swamp Fox Veteran Member

    Exactly! They have to restructure, but they just won't do it. They have to be forced, one way or the other.
  6. Throttlejockey™

    Throttlejockey™ Well-Known Member

    yes... they've failed to learn from the situation/ conditions (the papering over of the cracks in the wall) going into the GFC
  7. John R. Beanham

    John R. Beanham Typical Aussie Male


    Beat ya to it Swampy!
  8. Swamp Fox

    Swamp Fox Veteran Member

    That you did. But the destruction of the Euro will not solve their obvious problem, which is to live within their means AND do proper work for a living
  9. John R. Beanham

    John R. Beanham Typical Aussie Male


    "which is to live within their means AND do proper work for a living"

    Which, in a nutshell, is the basic problem around the world. The lesson will be painful.
  10. Swamp Fox

    Swamp Fox Veteran Member

    I'm not too fond of all these gatherings of world leaders, because they seem to be just very expensive social gatherings. The one at Davos is no different, as far as I'm concerned, but I liked what Angela Merkel said.

    Oh yeah. :D
  11. ethics

    ethics Pomp-Dumpster Staff Member

    I am not even a pro and... well, DAMN I AM GOOD! ;)

  12. Sierra Mike

    Sierra Mike The Dude Abides Staff Member

    Dude...it's SOROS!

  13. ethics

    ethics Pomp-Dumpster Staff Member

    One of the most pro-EU guys out there. Or was.
  14. Arc

    Arc Full Member

    Europe's conversion from individual national currencies combined with open borders have all most totally literally destroyed what was formerly the culture and independence of what was until the nineties modern Europe. It can never recover to being what it once was. I doubt unless one has lived there through the time period I mention that one can really fully grasp the loss and the negative impact it has had on the world.

    In the forseeable future Europe will eventually return to one common past trait--inter country strife and hostilities. It will be the survival of the fittest and dog eat dog eventually.

    Were I rich I would have through the ninties owned a second or perhaps even third home in Western Europe in at least two of the areas where I lived and worked. Now, I would not.

    The only country with the potential to make hay from this is Russia and in more ways than one.
  15. ethics

    ethics Pomp-Dumpster Staff Member

    Good post and spot on.
  16. Allene

    Allene Registered User

    The Brits were wise to stay away from the euro, but this will still affect them, won't it? We are already in trouble here, so how much worse will it make things for us on top of the fallout from what's going on at the White House?

  17. ethics

    ethics Pomp-Dumpster Staff Member

  18. Pyrion

    Pyrion Liquid Metal Nanomorph

    And it's especially hilarious that the reserve currency of choice for propping up the Euro is the US dollar.
  19. ethics

    ethics Pomp-Dumpster Staff Member

    I wonder how Iran feels now that they went full Euro last year as a fuck you to US?
  20. Arc

    Arc Full Member

    One thing about the Euro, I assume that there isn't an issue of any country practicing "quantitative easing." If that is so than at least there is one positive there.

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