Family & Relationships0 min ago
is italy next
front page of todays telegraph, only small article at the bottom of the front page
http://www.telegraph....-contagion-fears.html
when we all go bump who do we con to lend us some dosh
http://www.telegraph....-contagion-fears.html
when we all go bump who do we con to lend us some dosh
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You seem to be labouring under the misapprehension that this is some sort of interest-free charity.
Understandable if you read the rabidly anti-EU press that want's to try and manipulate you.
Remember the Irish situation - Osbourne couldn't get over there with his cheque-book fast enough
In Ireland they were less pleased!
If I can borrow money at 3 % but my neighbour has to pay 25% and I lend him money at 15%
Am I really "bailing him out"?
Understandable if you read the rabidly anti-EU press that want's to try and manipulate you.
Remember the Irish situation - Osbourne couldn't get over there with his cheque-book fast enough
In Ireland they were less pleased!
If I can borrow money at 3 % but my neighbour has to pay 25% and I lend him money at 15%
Am I really "bailing him out"?
You’ve not quite got hold of the right end of the stick, rov.
The pound has devalued against other major currencies (in particular the Euro) because that is the one of the two main mechanisms (the other being the manipulation of interest rates) used to attract inward investment when the economy slumps.
The UK has been able to use these tools to help stabilise and boost the economy. Those countries in the Euro zone cannot do this. They are stuck with “one size” interest rate and currency exchange rate which are generally set to suit the major economies of Germany and France. In the past countries such as Greece and Portugal would continually devalue their currencies to attract foreign investment and spending. Now they cannot do this and the pain they are enduring is obvious for all to see.
The simple fact is that the single currency project was an enormous folly driven by political ideology which set out to force a European monetary union which was doomed to fail. Such disparate nations as Greece and Germany cannot possibly function with common interest and exchange rates. The UK would be in a similar (if not worse) situation had we joined the Euro. The end game will be that the Euro will cease to exist in its current form. The likes of Greece and Portugal, probably Ireland and possibly Italy and Spain (the “PIIGS”) will have to leave the Euro and either set up their own single currency or revert to their individual currencies.
It will take far longer than it should for this to be forced principally because of the vanity of European politicians who refuse to admit their folly (of which they were adequately warned) in establishing the Euro. Meantime the damage done to the struggling Eurozone economies and those supporting them (including the UK) will be enormous.
Jake’s notion that it is somehow a profitable and viable business to lend to these nations is misplaced. The credit rating of two of them has been reduced to junk status and nobody in their right mind (and governments do not fit into this definition) would lend them a penny whatever the interest rate.
This is not my usual anti-EU rabidity. It is simple schoolboy economics (which, conveniently, is not taught in most State schools these days, so I am led to believe).
The pound has devalued against other major currencies (in particular the Euro) because that is the one of the two main mechanisms (the other being the manipulation of interest rates) used to attract inward investment when the economy slumps.
The UK has been able to use these tools to help stabilise and boost the economy. Those countries in the Euro zone cannot do this. They are stuck with “one size” interest rate and currency exchange rate which are generally set to suit the major economies of Germany and France. In the past countries such as Greece and Portugal would continually devalue their currencies to attract foreign investment and spending. Now they cannot do this and the pain they are enduring is obvious for all to see.
The simple fact is that the single currency project was an enormous folly driven by political ideology which set out to force a European monetary union which was doomed to fail. Such disparate nations as Greece and Germany cannot possibly function with common interest and exchange rates. The UK would be in a similar (if not worse) situation had we joined the Euro. The end game will be that the Euro will cease to exist in its current form. The likes of Greece and Portugal, probably Ireland and possibly Italy and Spain (the “PIIGS”) will have to leave the Euro and either set up their own single currency or revert to their individual currencies.
It will take far longer than it should for this to be forced principally because of the vanity of European politicians who refuse to admit their folly (of which they were adequately warned) in establishing the Euro. Meantime the damage done to the struggling Eurozone economies and those supporting them (including the UK) will be enormous.
Jake’s notion that it is somehow a profitable and viable business to lend to these nations is misplaced. The credit rating of two of them has been reduced to junk status and nobody in their right mind (and governments do not fit into this definition) would lend them a penny whatever the interest rate.
This is not my usual anti-EU rabidity. It is simple schoolboy economics (which, conveniently, is not taught in most State schools these days, so I am led to believe).
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