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When The Piigs Get Their New Devalued Currencies


Constable

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HOLA446

The Euro (Germany+?) will probably achieve parity and beyond to the £, but we should still find PIIGS property and living costs much cheaper than we do now. Food for thought for those of us who fancy leaving the UK at some point.

Cheap houses and a transit van full of whatever the new currencies are to do the weekly shopping. Living costs would be cheap if you have a substantial amount of a strong currency to pay yourself with but if you need to earn a living forget it.

Edited by campervanman
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If Greece gets the New Drachma, then I suspect Mr DJ's family will be off like a shot -- no looking back.

And although I do not wish Greece any more hardship, it has crossed my mind that if Greece gets a revalued currency, we might be able to buy something reasonable and move back there.

It's precisely these reasons that Greece should not be worried about moving to a new currency, and can prosper away from the Euro.

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If Greece gets the New Drachma, then I suspect Mr DJ's family will be off like a shot -- no looking back.

And although I do not wish Greece any more hardship, it has crossed my mind that if Greece gets a revalued currency, we might be able to buy something reasonable and move back there.

You're not the only ones.

Got land but waiting to see what happens here before making any build decisions.

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Cheap currencies would be great for the people who are currently most screwed in these countries, namely young Portuguese/Spanish/Greeks/Italians. Youth unemployment in these countries is almost unbelievably high, around 30-40%, and those who do have work are stuck on €700-1000 a month forever. Meanwhile older people are virtually unsackable and are entitled to very generous pensions, especially if they worked for the state. Property prices are a joke. I know a Portuguese couple in their late 20s who are planning to buy a flat for about 6.5x main income (his job is steady, her income fluctuates) with a 50 year mortgage, and this is seen as normal. If you talk to older Portuguese/Greeks they will tell you property always goes up.

A devalued currency would bring in the tourists and the manufacturing jobs, and higher interest rates would collapse their property/pension Ponzi. All to the good if you are a young person in these countries with poor employment prospects, a high cost of living and nothing to lose.

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In your own ways, you are as optimistic as the 'house prices only ever go up, get in quick' nutjobs that drove the market to where it is today.

Life's crappo at home - never mind - Nirvana is just a couple of thousand miles away. Cheap property, cheap wine, cheap women (one can but hope) and, presumably, an endless sterling income that converts to shedloads of local currency cash! Wow! What a dream!

Funny how Mr. Market always has a way of ruining the most beautiful dreams. Spain is full of people who retired there with the dream intact - only to find they can't afford to live there and can't sell their house to come home. Ahhh, but you're going to take advantage of their mistakes and buy their property cheap eh?

Still, if you haven't got a dream, how you gonna make a dream come true? Boom .... boom .... boom

hot_weird_funny_amazing_cool5_nirvana-nevermind-baby-spencer-elden1_200907261544361406.jpg

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In your own ways, you are as optimistic as the 'house prices only ever go up, get in quick' nutjobs that drove the market to where it is today.

Life's crappo at home - never mind - Nirvana is just a couple of thousand miles away. Cheap property, cheap wine, cheap women (one can but hope) and, presumably, an endless sterling income that converts to shedloads of local currency cash! Wow! What a dream!

Funny how Mr. Market always has a way of ruining the most beautiful dreams. Spain is full of people who retired there with the dream intact - only to find they can't afford to live there and can't sell their house to come home. Ahhh, but you're going to take advantage of their mistakes and buy their property cheap eh?

Still, if you haven't got a dream, how you gonna make a dream come true? Boom .... boom .... boom

I expected to be shot down, the moment I posted :D

But - this is about getting the timing right imo - not about the morals of buying abroad.

And besides - everything in life starts with a dream - even the biggest business on the planet was someone's dream once.

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In your own ways, you are as optimistic as the 'house prices only ever go up, get in quick' nutjobs that drove the market to where it is today.

Life's crappo at home - never mind - Nirvana is just a couple of thousand miles away. Cheap property, cheap wine, cheap women (one can but hope) and, presumably, an endless sterling income that converts to shedloads of local currency cash! Wow! What a dream!

Funny how Mr. Market always has a way of ruining the most beautiful dreams. Spain is full of people who retired there with the dream intact - only to find they can't afford to live there and can't sell their house to come home. Ahhh, but you're going to take advantage of their mistakes and buy their property cheap eh?

Still, if you haven't got a dream, how you gonna make a dream come true? Boom .... boom .... boom

The basis of this site is basically jealousy. Jealous that they missed out on HPI, jealous that council tenants get to pay less rent, jealous that the unemployed get to laze around being paid by the state. Its not described as jealousy of course, but unfairness.

I have found my Nirvana though, because in Poland you can buy property cheap and get building work done for 1/4 the amount in the UK. But as you point out, imbalances compensate themselves.

Similar thing will happen if the northern and southern countries split. there will be a period when southern countries property looks cheap, but the high DM will kill the German export economy and bring it back down in line. The only question is how long that will take, I suspect German would have a immediate a VERY serious crash as its being subsidised by a cheap Euro..

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So currency devaluation and inflation are the answers for the PIIGS but not for the UK then? Some contradiction here me thinks.

They've already had the inflation. Prices in these countries are crazy for what they earn. €6 for a glass of wine in Athens, €6 for a burger in Portugal, while minimum wage is around €2.50/hour.

Edit: What they need now is deflation versus everybody else to make them competitive again, possibly through devaluation. Then they need wage increases, which is what they will get if they can bring back the tourism and export industries without sending all the money to the banksters and property speculators this time.

Edited by Dorkins
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HOLA4421

They've already had the inflation. Prices in these countries are crazy for what they earn. €6 for a glass of wine in Athens, €6 for a burger in Portugal, while minimum wage is around €2.50/hour.

Edit: What they need now is deflation versus everybody else to make them competitive again, possibly through devaluation. Then they need wage increases, which is what they will get if they can bring back the tourism and export industries without sending all the money to the banksters and property speculators this time.

Those arguments can equally be applied to the UK.

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Be careful what you all wish for.

Massive devaluations in the PIIGS may mean a cheaper bolt-hole for you to spend the winter months. The youth in these countries won't wait around to serve you poolside drinks and cheap 3 course dinners. They'll head to the place you came from to make the same "good money" that you are splashing. If they are canny, they'll save it and send some back home. And given we are all in the EU, these economic migrants won't be barred from entry. B)

If the PIIGS devalued by half or greater, then millions of workers will arrive on the doorsteps of the UK/France/Germany. And they'll do the same job for less than you.........a lot less. :ph34r:

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I love Malta, especially the points they award us in the Eurovision Song Contest, but if only they could have a debt crisis then we could all worry about the Giimps for a change.

Just hope the Netherlands, Italy, Greece, Germany, Estonia and Romania never get together to form an alliance of sorts....

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