Two Hours To Save Europe!

[MinceBalls]

Contagion? What next, Portugal then Spain then Island and then others start to fall and Germany, France et al get dragged down and end up back in massive recession. What little we export is in the main to Europe so we get dragged down. Then Asia starts to feel it and the US follow. That’s why we should be bothered. We are all linked as was discovered when a few people started defaulting on their home loans in USA.

Why are we involved in this ?

Look, I can understand the other euro countries getting involved......... Greece is threatening their currency, there is an obvious self-interest there for them. I haven't run the numbers, but I can see a case might be made along the lines of "it's cheaper for us to do this, than take the hit to the euro as that will affect our euro based economy".

But WTF ........ Why are we involved ? It isn't our currency thats being propped up. If Greece goes down, and drags the euro with it (either a little way or more or the whole way) what concern is that of ours ?

So.... while I can see the case for "All the euro countries who have a bit of cash...... pony up and put some in the pot for greece to help save all our hides" why on earth is the UK putting money in the pot ?

Please, someone tell me we're not contributing cash to this.

If we are....... why aren't the yanks and the Japanese also coming to greece's rescue ? They aren't euro countries either, but that doesn't seem to have kept us out of it.

And, I know, I know, we are involved in the EU more generally......... but this is SPECIFICALLY a currency issue. Whats the point of staying out of the Euro currency if we have to dip in and bail it out when it needs it in any case ?

Will the euro countries come to OUR rescue if the pound is the next currency being subject to a concerted specualtive assault ?

I suppose thats one way this could be worth it for us........... if there has been a written quid pro quo "We'll help the Euro out with our pounds if Euro nations come under speculative attack.......... but we expect the Euro to come swinging in to save us if the pound suffers a similar attack".

Is there any indication that Gordon received such a deal in return for sticking cash in the pot for Greece ?

Yours,

TGP

[SHERWICK]

No as clearly you don't get the debt is wealth paradigm, Greece can't borrow any more money because it's not wealthy enough, whereas the UK is incredible wealthy due to our debt we can therefore borrow even more money and increase our debt/wealth which we can then share with the greeks who will still remain poor and not understand this debt is wealth paradigm.

So we get more debt and therefore wealthy whilst the greeks get poorer.

I hope this 101 in modern economics has been helpful.

Was that a Public Service Announcement?

[TGP]

Contagion? What next, Portugal then Spain then Island and then others start to fall and Germany, France et al get dragged down and end up back in massive recession. What little we export is in the main to Europe so we get dragged down. Then Asia starts to feel it and the US follow. That’s why we should be bothered. We are all linked as was discovered when a few people started defaulting on their home loans in USA.

Fine,

As long as Gordo can get that in writing !

Dear Gordon, all our economies are inextricably linked.

We need to band together to save all of us.

You'll help us save greece. But, of course, under the same rationale, if the UK gets attacked we'll band together to save you.

We're ALL linked you see.

Signed,

Europe.

Thats more like it.

I can see the benefit in helping the greeks out........ so long as it's a quid pro quo for the Euro propping us up, under the same rationale, if we're the next target.

BUT........ we need that quid pro quo in an actionable form.

We can't turn round and bail out the Euro with our pounds........ without an agreement that, should push come to shove, the Euro will bail out our pounds in return.

My question is........ is Gordo getting that ? If yes, fine (with caveats). If not, why is this a one way street !

Yours,

TGP

[thecrashingisles]

It wouldnt surprise me if this time next year, there are more countries in the Poundzone than the Eurozone.

More like Poundstrecher. Or should that be 99p?

[Injin]

I'm just off to some Irish websites to see how this is playing in the Emerald Isle.

Let us know what you find, i'll have a shufti myself.

It's WAY too quiet about this, the usual outraged suspects have passed or are starting to get passed the talking stage I fear.

[Guest skullingtonjoe]

I enjoy your pontificating.

Raas! What the fukk a g`wan yahso!?

When are the Greek riots going to kick off again! Is this Sparta? No, geezer, it`s Athens! Total mayhem bad boy! !

[MarkG]

there is no scope for wage inflation, so we will be in the position of supply prices going up but no wage increases to cope. we will then just get poorer and poorer, to the tune of £800 billion pounds. more than any debt we have paid before and right on the line we can cope with.

Bingo: governments can create inflation just by running the printing press 24 hours a day. But they can only cause wage inflation by paying public sector employees more, which leads to total economic collapse as worthless government bureaucrats end up paid much more than the people who do the real work and create the real wealth: sure, they can tell companies they must increase wages, but that will lead to more layoffs and outsourcing.

[Bloo Loo]

Its about time they sent Jason Statham and the Argonauts to find the golden fleece.

[squire]

I caught a bit of the news last night (cannot remember which channel) but a guy being interviewed in regards to the Greece situation stated the the UK is the highest holder of Greek bonds. What affect this has I'm not sure.

[Bloo Loo]

I caught a bit of the news last night (cannot remember which channel) but a guy being interviewed in regards to the Greece situation stated the the UK is the highest holder of Greek bonds. What affect this has I'm not sure.

nonsense, there is no sub-prime in the UK.

[TGP]

Metro reports that there is, as yet, no British money being used to bailout greece........ it seems to be an entirely eurozone affair.

So, looks like guns were jumped yesterday.

Anyone have a more reliable source than the Metro for this ?

TGP