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It Is All Kicking Off Again - Latvia To Collapse


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Oh the irony of the supply side, flat tax poster boys of neo-liberalism being in hoc to the Swedes.

Amazing to read earlier Telegraph articles on this subject

http://www.telegraph.co.uk/news/uknews/1497572/Pioneer-of-the-flat-tax-taught-the-East-to-thrive.html

Shame no one bothered to mention the massive levels of debt that was underpinning everything.

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Latvia's economy contracted by 18.2pc in the twelve months to June, trumped only by Lithuania at 20.4pc. "Latvia's currency peg is back on the agenda, " said Hans Redeker from BNP Paribas. "The government has to relax policy for social reasons. The hardship this winter is going to be unbelievable."

More green shoots. :o

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Published: 7:25PM BST 15 Dec 2009

Banks brace for Britain's collapse

Britain's currency peg is back on the agenda

The Svenska Dagbladet newspaper said Sweden's finance minister Anders Borg had told banks secretly that Britain's political order was unravelling, advising them to prepare for the collapse of Britain's rescue talks.

The UK has failed to deliver draconian spending cuts agreed to secure the next tranche of its €75bn (£75bn) bail-out from the EU, the International Monetary Fund, and Sweden, balking at 20pc cuts in pensions and a further 15pc cut in public wages.

Maybe I've got the date wrong though.

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Published: 7:25PM BST 15 Dec 2009

Banks brace for Euro's collapse

Germany's willingness to bankroll Europe is back on the agenda

The Svenska Dagbladet newspaper said Sweden's finance minister Anders Borg had told banks secretly that Europe's political order was unravelling, advising them to prepare for the collapse of Euro rescue talks.

The Euro region has failed to deliver draconian spending cuts agreed to secure the next tranche of its €750bn (£600bn) bail-out from the Bundebank, the International Monetary Fund, and Sweden, balking at 20pc cuts in pensions and a further 15pc cut in public wages.

[/Quote]

There... corrected for you ;)

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Youth unemployment in Latvia is already 31pc, and concentrated among ethnic Russians.

is the interesting line for me. If the situation gets so bad that the Russian youth start rioting, and the Latvian government have to take repressive measures against them, then surely the temptation is for the Russian government to intervene?

Also, what if the Latvians were to bury the hatchet and ask the Russians to bail them out?

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please please please

lets have some sort of financial disaster that sends house prices crashing.

i could not care a less what the cost to other people to be honest, they still clearly dont catre about pricing people out of society forever.

With this attitude it sounds like society would be better off with you priced out of it forever.

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Published: 7:25PM BST 15 Dec 2009

Banks brace for Euro's collapse

Germany's willingness to bankroll Europe is back on the agenda

The Svenska Dagbladet newspaper said Sweden's finance minister Anders Borg had told banks secretly that Europe's political order was unravelling, advising them to prepare for the collapse of Euro rescue talks.

The Euro region has failed to deliver draconian spending cuts agreed to secure the next tranche of its €750bn (£600bn) bail-out from the Bundebank, the International Monetary Fund, and Sweden, balking at 20pc cuts in pensions and a further 15pc cut in public wages.

There... corrected for you ;)

:lol::lol::lol:

Superb

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is the interesting line for me. If the situation gets so bad that the Russian youth start rioting, and the Latvian government have to take repressive measures against them, then surely the temptation is for the Russian government to intervene?

Also, what if the Latvians were to bury the hatchet and ask the Russians to bail them out?

With what? Russia too is collapsing.

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Does this mean that we will have a mass influx of Latvians, who fondly believe that in GB, the streets are paved with gold?unsure.gif

They will find the streets are not paved with gold.

They will find the streets are not paved at all.

They will find that they are expected to pave them.

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This is likely to put further pressure on the German and Austrian banks, who will turn to the ECB for assistance (given that the IMF is over-stretched as it is).

The result for us will be renewed pressure on the Euro which will rebalance the Euro/Pound exchange rate once more. Not that it should be construed as health of the pound (as the BBC will no doubt trumpet) but simply we will be falling at much the same rate.

"Crash back on" sentiments are a bit premature but I'd wager the uber-bears won't have too much longer to wait now.

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please please please

lets have some sort of financial disaster that sends house prices crashing.

i could not care a less what the cost to other people to be honest, they still clearly dont catre about pricing people out of society forever.

SCUM!

SICK!

Self obsessed individual. I hope you suffer and burn. Genuine people in society deserve better than the bile spewed by scum like you.

I hope something terrible happens to you and the ones you love and sombody gains from your demise.

TROLL ...that is exactly what you are.....a TROLL. I wish you nothing but pain for the rest of your sad life.

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Mr Borg said the world's patience is running out. "It will be very hard to continue with these international programmes if they don't fulfill the spirit and the content in the agreements they have signed."

Our corporate masters have come up with a radical plan to transform the Latvian workforce to undercut Chinese labour..

number_four_borg.jpg

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please please please

lets have some sort of financial disaster that sends house prices crashing.

i could not care a less what the cost to other people to be honest, they still clearly dont catre about pricing people out of society forever.

+1

Helping young families live in something more than a 2-bedroom flat has greater moral value than helping the asset-owning class improve the returns on their retirement fund.

And to anyone who's not happy: please read my signature.

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The Baltic trio financed property booms in euros (and swiss francs) because rates were lower. It was taken for granted that eventual euro entry had eliminated the exchange risk. This has become a trap. They need to devalue to break the cycle of depression, but cannot do so because of euro mortgages. Instead they hope to claw back lost competitiveness through wage deflation. This takes years, and discipline.

Who really suffers if the currency peg gives way and all those loans default?

The houses will still be there and available to be lived in. Marked-to-market in a non-euro-linked currency they will be cheaper in real terms, so Latvians renting their old homes back (or equivalent homes) will pay less rent. Latvians eventually buying these homes will have to take on less debt.

Unless the government too has borrowed in euros, the default will be restricted to private borrowers i.e. there will be no sovereign default.

Burned fingers all round for foreign banks and governments who've financed/guaranteed loans on the basis that a lats was as good as a euro ... but only because of their own greed and hubris.

Seems like a no-brainer for Latvia, to me.

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please please please

lets have some sort of financial disaster that sends house prices crashing.

i could not care a less what the cost to other people to be honest, they still clearly dont catre about pricing people out of society forever.

What has home ownership got to do with being a member of society ? I suggest you give this site a rest for a little while pal. It's obviously warping your tiny mind.

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SCUM!

SICK!

Self obsessed individual. I hope you suffer and burn. Genuine people in society deserve better than the bile spewed by scum like you.

I hope something terrible happens to you and the ones you love and sombody gains from your demise.

TROLL ...that is exactly what you are.....a TROLL. I wish you nothing but pain for the rest of your sad life.

At least he/she's not a socialist like you.

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