Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Bank's Adam Posen Warns Of Eurozone Threat To Britain

Recommended Posts

http://www.telegraph.co.uk/finance/economics/7737768/Banks-Adam-Posen-warns-of-eurozone-threat-to-Britain.html

Adam Posen, an American economist and member of the Bank's Monetary Policy Committee (MPC) said Britain would be in trouble if the eurozone fell back into recession because it is so heavily dependent on the region for trade.

"This is a huge risk to the UK. Sixty per cent of our trade is with the euro area. So we view this as a very real risk," he told the US National Public Radio.

"We're small compared to the euro area. If the euro area goes down then that does have a huge impact on us. There's not that much we can do about it."

Mr Posen said the eurozone was in store for very low growth over the foreseeable future, which he said explained the euro's decline and market volatility despite a $1 trillion (£693bn) rescue package agreed by eurozone members last week. "This isn't necessarily a negative verdict on the stabilisation effort, it's a negative verdict on the reality that growth is likely going to be very slow in much of the euro area for the next several years," he said.

The single currency has been sharply hit by the debt crisis that began in Greece and spread to other troubled countries in the region. The eurozone economy grew by 0.2pc in the first quarter, following zero growth in the fourth quarter of 2009.

Mr Posen said he thought it unlikely that the euro system would collapse, but conceded "it's certainly more likely now than it ever was at any point in the previous 11 years, the 11 years the euro existed."

Thank god it merely reflects low growth rates in the Euro area rather than a negative verdict on the creation of $1tr of new debt to solve a debt crisis.

Everyone it appears is toast.

Share this post


Link to post
Share on other sites
Mr Posen said he thought it unlikely that the euro system would collapse, but conceded "it's certainly more likely now than it ever was at any point in the previous 11 years, the 11 years the euro existed."

From its inception it's always been 100% certain that the euro system would collapse. It's just that the endgame is now visible (although for Adam Posen only through the fog of his own delusion).

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.