euro zone falls to bits

Discussion in 'OT (OFF Topic) Forums' started by nick mercedes, Sep 20, 2011.

  1. nick mercedes

    nick mercedes MB Enthusiast

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  2. SPX

    SPX MB Club Veteran

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    Following the mantra 'buy low, sell high', wouldn't it be a good time to join the euro now? As a sort of knight in shining armour?
     
  3. OP
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    nick mercedes

    nick mercedes MB Enthusiast

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    The UK's skint though, only the Germans have any money.

    Note that the only countries with any money are the ones we sent our industry to...
     
  4. Red C220

    Red C220 MB Enthusiast

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    We're not out of the woods yet. Our debt is bigger than that of Greece, the difference being we have the (potential) ability to trade out of it. Greece don't.

    I've never known anything quite like what we're going through now. All this talk of we're entering another recession, I'd like to know when we left the first one!

    Can you imagine the carnage when interest rates return to a sensible level of even 5% or 6%.

    We're far from clear ourselves, The Feta hit the fan in Greece a few months ago and it's all rather academic for the Greeks now.

    What will the UK do?
     
  5. markjay

    markjay MB Club Veteran

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    I really can't get my head around the problem with the Euro.

    The whole idea about having same currency is that the richer parts pay for the poorer ones.

    This is how it works in the US between the different states, and indeed in any country, e.g. North Italy vs. South Italy before the Euro, etc.

    So what exactly is everyone complaining about? It was always clear that the wealthier countries in the EU will end up subsidising the poorer ones.

    Every person on benefits who boards a bus with a free bus pass understands this principal.
     
  6. balge

    balge Active Member

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    Hmm..."Jawohl, mein Obergruppensturmbannfuhrer ze plan is vorking, soon ve shall be able to buy ALL of Europa for ze price of an old Mercedes-Benz auto!

    Don't think we actually did much to help German or Japanese industry, the Yanks were all too happy to throw billions at them to build a new industrial economy while we struggled to pay back lend-lease, though.
     
  7. WDB124066

    WDB124066 MB Enthusiast

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    I feel China has an interest in Greece, I wonder if they will make their presence felt, that would be interesting, a Chinese bail out......??
     
  8. SPX

    SPX MB Club Veteran

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    Which has got nothing at all to do with selling off pretty much everything this country owns to 'foreign investors' and/or 'the city'.

    But hold on, I can buy a council house if I want, which is an oxymoron if ever there was one.
     
  9. Red C220

    Red C220 MB Enthusiast

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    There would probably be an ethical problem with that on the communist front.

    I'm not sure how they slip a capitalist rescue plan past the comrades.
     
  10. OP
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    nick mercedes

    nick mercedes MB Enthusiast

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    In Greek Port, Storm Brews Over Chinese-Run Labor : NPR

    China's taking over the world, on China's terms too.
     
  11. OP
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    nick mercedes

    nick mercedes MB Enthusiast

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    They just take over, comrades act like capitalists these days - see Animal Farm...
     
  12. Scott_F

    Scott_F MB Enthusiast

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    If your neighbour jumped off a high cliff would you be a "knight in shining armour" and follow them over the edge ?

    The BBC reported this morning that Nick Clegg (previously pro-Euro) has conceded that it would have been a big mistake to adopt the new currency and that we had a lucky escape in not doing so.
     
  13. blondebier

    blondebier Active Member

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    I thought this graph from the BBC was quite a eye opener...

    BBC News - Eurozone in crisis in graphics: Deficit

    Finland are obviously doing something right.
     
  14. OP
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    nick mercedes

    nick mercedes MB Enthusiast

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  15. Mr E

    Mr E MB Enthusiast

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    I was sat in a conference last week - bet bit was the keynote speaker demonstrating that countries cannot "save" themselves out of recession through austerity measures, but need to generate more income by developing policies to encourage growth.

    Austerity isn't doing much here in the UK in terms of deficit reduction, and it abviously isn't doing much in Greece either. The question is, can Greece grow it's way out of trouble?

    Don't know much about the Greek economy but shipping and tourism seem to be two major componants. Doubt that much growth comes out of those segments in the next couple of years. I would imagine that the textile industry is under the same pressures as the rest of europe from Far Eastern manufacturers.

    A structured default is probably the best thing. However, the financial system is much more fragile than when places like Argentina defaulted. It's likely that one or more of the major european institutions will be impacted on a major basis, and the fallout would probably be similar to that surrounding Lehmans. That's a big problem that the rest of the governments want to avoid, and see propping up Greece as being more policalt acceptable than bailing the banks out directly yet again.
     
  16. corned

    corned MB Enthusiast

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    Right - that does it.

    I'm going out straight away to withdraw all my investments, savings, pensions, ISAs, etc, and go directly to M&S and buy up all their stock of prawn mayo sandwiches.

    That way, my money will be more safely (and longer term) invested than where it is now.

    (With thanks to Gerald Ratner.)
     
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  17. grober

    grober MB Master

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    The graphs all show the European countries' economies took a dive around the time of the banking crisis which was due to the banks literally "hiding" Europe and US mounting debts on the world stage from its citizenry . Governments and the voting population have a aspect of blame for the situation by " looking the other way" but the guys responsible for introducing the financial meltdown "trojan horse" to western economies were the financial institutions who had the facts ,figures and expertise to see what was going on but chose instead to simply manipulate the situation for their own selfish ends. [what's new?] The Chinese have all the money now. It's re-education time as Chairman Mao would have said. The only way for Western Countries to re-energise sustainable economic growth is to stop buying stuff from the Chinese and start making it here again. That means protectionism,tariff barriers etc till China " joins the club" and revalues its currency to realistic levels reflecting the present huge trade imbalance. Time for China to "share the pain" methinks. we on the other hand have to learn that buying too many "things" on borrowed money is not the road to happiness either.:dk:
     
    Last edited: Sep 20, 2011
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  18. Palfrem

    Palfrem MB Enthusiast

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    Trouble is, you'd probably want another Chinese bail-out in an hour
     
  19. Druk

    Druk MB Enthusiast

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    But then you eat half the sandwiches and your new investment ends up in the same place as the old............:eek:
     
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  20. SPX

    SPX MB Club Veteran

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    It was a tongue-in-cheek post.

    I never quite saw the appeal of the Euro, it just looked as though the 'big' (Germany) nations would end up having the 'small' (Greece) nations in their pockets. A superstate if you will.

    I'm sure someone else tried that in Europe a few year ago, although there is more than one way to skin a cat I suppose....
     

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