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Euro Brinkmanship Escalates As Ecb Shuts Door On Greek Bail-Out


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Even if they did exit the euro and devalue, their debts would still be in euros so they'd be in an even worse situation. They have to stick with the euro, play by the European Comission's rules and accept that, in economic terms, they are now a German colony.

I assume they'd default on their euro debts, probably by converting euro bonds into new-drachma bonds. Doubtless bondholders will whine if this happens, but it's not as if the risk isn't known and priced in.

If people are pushed too far by EU or other international agreements, they will withdraw from them -- through violent upheaval if that's what it takes. The Germans should understand this very well as they've done it themselves, most memorably B)

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Greece is a typical example of a country that shouldnt be in the Euro.

Greece make most of its income from taxes, mostly related to tourism, shipping amongst others. Greece is a lovely country, but so is Turkey. One is more expensive than the other and that in part is thanks to the Euro. The number of tourists visiting Greece's neirbours such as Turkey and Egypt have gone through the roof, while Greece has seen year on year decline since ditching the drachma.

Sorry Greece, but you need to remember where you came from, because we loved you the way you used to be.

If Greece doesnt get rid of the Euro or bailed our by the big boys then this is definitly one to watch, expecially regarding property. :lol:

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They already do. one of the producers of € notes is the Bank of Greece, notes bearing the print code starting with an 'N.'

http://en.wikipedia.org/wiki/Euro_banknotes

Spain don't get to make any, but Ireland do!

ALL of the Euro countries get to make notes/coins that they feed into the system The amount that they are allowed to make depends upon the size of their economy (as a proportion of the whole EU economy). But they can't print any more than this.

Though not all of the EU countries actually make their own money, some contract a third party to do it, but the still count as if they were made by the country in question.

Countries are paid by the ECB to do this. If the UK were to join the Euro we would receive a "Euro bonus" of (I believe) several tens of million (per year) because we would be allowed to print more notes than our cash economy actually needs as we have a much higher peroportion of credit card payments than other countries.

tim

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another week

another article of impending collapse of the euro in the Torygraph by Ambrose Evans-Pritchard

yaaaawwn B)

Yes, it's getting quite boring.

Evans-pritchard can't - or won't - take in the extent that the US is dependent on China to keep its ponzi economy afloat.

What I can't understand - maybe someone can help me out here - is what is the difference between Ireland and Greece? They have both run up huge public sector deficits and have now initiated swingeing cuts. yet Dublin is feted while Athens is spat upon. Why?

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Yes, it's getting quite boring.

Evans-pritchard can't - or won't - take in the extent that the US is dependent on China to keep its ponzi economy afloat.

What I can't understand - maybe someone can help me out here - is what is the difference between Ireland and Greece? They have both run up huge public sector deficits and have now initiated swingeing cuts. yet Dublin is feted while Athens is spat upon. Why?

Dublin convinced thier people to vote yes to Lisbon the second time around. I would imagine a few deals were done.

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Yes, it's getting quite boring.

Evans-pritchard can't - or won't - take in the extent that the US is dependent on China to keep its ponzi economy afloat.

What I can't understand - maybe someone can help me out here - is what is the difference between Ireland and Greece? They have both run up huge public sector deficits and have now initiated swingeing cuts. yet Dublin is feted while Athens is spat upon. Why?

I'm not aware of Greece having made that many cuts, certainly not compaired to Ireland, so I assumed that was the difference.

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Yes, it's getting quite boring.

Evans-pritchard can't - or won't - take in the extent that the US is dependent on China to keep its ponzi economy afloat.

What I can't understand - maybe someone can help me out here - is what is the difference between Ireland and Greece? They have both run up huge public sector deficits and have now initiated swingeing cuts. yet Dublin is feted while Athens is spat upon. Why?

simple (Im from Ireland btw)

we had a series of brutal budgets addressing (somewhat) the problems with bloated welfare / Public sector costs

Greece didnt (yet) do anything or even make any noise about addressing issues

Dublin convinced thier people to vote yes to Lisbon the second time around. I would imagine a few deals were done.

your talking shit

Edited by yelims
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Yes, it's getting quite boring.

Evans-pritchard can't - or won't - take in the extent that the US is dependent on China to keep its ponzi economy afloat.

What I can't understand - maybe someone can help me out here - is what is the difference between Ireland and Greece? They have both run up huge public sector deficits and have now initiated swingeing cuts. yet Dublin is feted while Athens is spat upon. Why?

Ireland is next door to the United Kingdom. Euro countries love the UK to join to strengthen the Euro, once it has its deficit under control too. You dont get new countries to join you decadent currency by beating upon its next door neirbour. Instead you hold Ireland up as model of how much the Irish love their new currency that they want more of it by signing the Lisbon Treaty. Come on UK, get your house in order, get rid of Gordon and join us in the Euro. BTW Ireland, theres a fricking big whole in your budget, sort it out or you'll be like Greece and Spain. We cant let the UK see what a dismal failure the Euro is, until they've joined and can help pick up the mess we have created over the past 10 years.

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simple (Im from Ireland btw)

we had a series of brutal budgets addressing (somewhat) the problems with bloated welfare / Public sector costs

Greece didnt (yet) do anything or even make any noise about addressing issues

your talking shit

If your politicians did not do a deal for getting Lisbon approved then they are the most stupid politicians in the whole world. They could hae named thier price, Audi, BMW, Peugeot car plants in Ireland all would have been aprroved in an instant. So the term "Thick Paddy" must apply to your political class.

Edited by ralphmalph
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If you politicians did not do a deal for getting Lisbon approved then they are the most stupid politicians in the whole world. They could hae named thier price, Audi, BMW, Peugeot car plants in Ireland all would have been aprroved in an instant. So the term "Thick Paddy" must apply to your political class.

you give to much credit to the politicians here :rolleyes:

they proven time and time how utterly corrupt and incompetent they are and incapable of doing anything but lining their own pockets

so once again, stop talking shit

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you give to much credit to the politicians here :rolleyes:

they proven time and time how utterly corrupt and incompetent they are and incapable of doing anything but lining their own pockets

so once again, stop talking shit

I have never seen a Country sold down the river so fast, by so few, for zero gain for the population.

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ALL of the Euro countries get to make notes/coins that they feed into the system The amount that they are allowed to make depends upon the size of their economy (as a proportion of the whole EU economy). But they can't print any more than this.

If the Greeks decide they need 'printy printy', who's going to stop them? Do you think German troops will be invading Greece to shut down the printing press?

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I'm not aware of Greece having made that many cuts, certainly not compaired to Ireland, so I assumed that was the difference.

What about this?

http://news.bbc.co.uk/1/hi/business/8411749.stm

The Greek prime minister has unveiled a series of spending cuts, warning that the country is at risk of "sinking under its debts".

George Papandreou said the planned cuts would include a 10% cut in both social security spending, and overall government operating expenditures.

Calling for national unity, he vowed to reduce Greece's public deficit from the current 12% to under 3% by 2013.

He also announced a 90% tax on the bonuses of senior bank workers.

ANALYSIS

Malcolm Brabant, BBC correspondent in Athens.

This was a speech that was designed to appease international markets and European central bankers.

Mr Papandreou said there were certain moments in the history of a nation when the choices made defined the time to come.

Today was such a moment he said. Then he announced what the government described as sweeping structural reforms.

These included a 10% reduction in both government operating expenditures and social security expenditure.

Mr Papandreou's Socialist government will try to convince the unions and opposition political parties that the cuts he has proposed are in the national interest.

The Conservatives are likely to concur, but left-wing groupings have already indicated that they will fight the government.

Other proposals include a cut in defence spending, pay and hiring freezes for public sector workers, and the closure of a third of Greece's overseas tourism offices.

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