The Euro

will Survive   1 vote - 33 %
is Fucked   1 vote - 33 %
is totally Fucked   1 vote - 33 %
WIPO   0 votes - 0 %
 
3 Total Votes
The WW II villians are mostly all dead now by marvin (2.00 / 0) #1 Tue Aug 02, 2011 at 01:18:10 PM EST
And have been for decades. You Brits and your reliving of past glories. Is there anyone on this site who was even born before 1945?

Given the probable inability of those countries to service the debt and the associated default risk, Germany could just cut out the pretense of "loans" and pay off their debt. Except that would be political suicide for Merkel.

Nobody is going to give Greece & co. the money without a huge degree of control over those countries. I wouldn't trust Greece, whose cooking of the national books led to this mess, with a large sum on money. If the only chance of seeing that money repaid rested on that same government implementing a series of difficult and unpopular reforms and austerity measures, my reluctance would deepen.

I completely agree that their debt would be more manageable with lower interest rates, and the risk of default would drop. IIRC, hitting 9% interest rates on bonds was what drove Portugal over the edge, so the vultures circling the area are not helping the situation. However, I wouldn't even lend my own money to those countries - even a 25% interest rate is meaningless if they default.

Just for the record, by ambrosen (2.00 / 0) #4 Tue Aug 02, 2011 at 03:45:44 PM EST
this Brit thought the reference to World War II incredibly gauche.


[ Parent ]
just for the record by anonimouse (2.00 / 0) #5 Tue Aug 02, 2011 at 03:49:15 PM EST
this article was meant to be incredibly gauche.


Girls come and go but a mortgage is for 25 years -- JtL
[ Parent ]
Stick with what you know by marvin (2.00 / 0) #6 Tue Aug 02, 2011 at 03:50:19 PM EST
Always a winning formula.

[ Parent ]
But when one knows nothing by anonimouse (2.00 / 0) #7 Tue Aug 02, 2011 at 04:29:47 PM EST
...how can one stick with it?


Girls come and go but a mortgage is for 25 years -- JtL
[ Parent ]
You know gauche by marvin (4.00 / 1) #8 Tue Aug 02, 2011 at 04:59:37 PM EST
You live gauche.

Embrace your identity.

[ Parent ]
I will say it again by dmg (2.00 / 0) #2 Tue Aug 02, 2011 at 02:06:03 PM EST
A current union only makes sense when there is a political union.

It must have provision for subsidies from more economically productive areas to less economically productive areas.

The euro zone arguably has neither, although a lot of the actors are maintaining a good pretence.

Until such time as the Brits are ready to fawn over Von Rumpoy and Barosso the same way as they do the lizard queen, I see no prospect of the uk joining the euro.
--
dmg - HuSi's most dimwitted overprivileged user.

s/current/currency by dmg (2.00 / 0) #3 Tue Aug 02, 2011 at 02:26:12 PM EST

--
dmg - HuSi's most dimwitted overprivileged user.
[ Parent ]
Currantcy union? by Scrymarch (2.00 / 0) #9 Tue Aug 02, 2011 at 06:38:29 PM EST
Could work with the global grape / wine glut. Arise the Euraisin!

Iambic Web Certified

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You are correct. by Tonatiuh (2.00 / 0) #12 Mon Aug 15, 2011 at 11:13:43 PM EST
Which is why the EU has been working on it for the past 30 years.

I say this as a compliment, EU politicians understand that Europe only has a future in world affairs as a unity, Germany, France or the UK will have little or no influence at all on their own (the Euro has credibility only because, not in spite of current EU political ties).

[ Parent ]
Your scheme by jimgon (2.00 / 0) #10 Sat Aug 06, 2011 at 07:25:06 PM EST
My understanding is that it's already in the works with the creation of a special bank funded with German bonds which would only exist to service the debt from the PIGS.  It'll exist outside the EU framework and since it's German funded by a German institution though technically it would not be part of the German government.  Sort of like a European Frannie Mae, but instead of buying mortgages it will buy PIGS bonds. 




---------------
Technician - "We can't even get decent physical health care. Mental health is like witchcraft here."
This just goes to prove by anonimouse (4.00 / 1) #11 Sun Aug 07, 2011 at 02:54:34 AM EST
I am an economic genius and should be recognised as leader of the free world...


Girls come and go but a mortgage is for 25 years -- JtL
[ Parent ]