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Lessons Of Argentina Crisis Ignored In Handling Of Greece

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Who cares about Greece. They can't even meet their own budget covenants.

Unless those Greek folk get militant and start killing politicians and banker scum they will see their country sold off for a song to the uber rich Euro banker families.

EDIT: I can assure you that everything is going EXACTLY to plan with Greece, although it may require foreign military feet on the ground to settle their debt.

Edited by cashinmattress

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And Timmy got a promotion, of course he'll have forgot this and what's even better no journalist will bring up this report in any meeting with him.

It's easy to write a report saying no support will be given, the problem is their won't be the political and then you have the dynamics of actually letting the private sector eat the losses. That outcome will be avoided at all costs.

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Pedro, thanks for that link...

On the Comments to Telegraphs article came this...

There is a saying among Bankers: "There is always a weakest Bank."

What that means is that when the entire Banking system comes under stress, as it did in the Thirties, then in the late eighties, and then two years ago, there will always be a weakest Bank that fails first, and then a second-weakest, and so on.

This makes the survivors look better than they really are. You may look at the Banks that are still in business and think that they are sound, but it can be that the entire system is unsound and they simply have not failed yet.

This is what is happening with Greece, Portugal and Ireland today. Because their problems are so public and so serious, we tend to think of the rest of the Eurozone as healthy, at least relatively.

But it's worth remembering that since the Eurozone was set up, European countries quickly went from balancing their budgets to running persistent

deficits. The persistent deficits were funded by borrowing. Even France and Germany went into the financial crisis with debt levels between 65% and 70%, above the so-called solidarity pact levels.

In effect, since the Euro was launched, the Euro countries have been

borrowing a standard of living they were not earning. Not just the PIIGS - all of them.

This means that all this debt can't be reduced without *all* Eurozone citizens taking a pretty serious haircut on their standard of living, their social benefits, their pensions.

It also means that the entire Eurozone Banking system is sitting on a base of assets that may in reality be worth far less than their books claim. Today, Barclays published a list of Greek debt holders. A full 69% of all the Greek debt, E260bn, is held by the top-30 holders, all of which are in Europe. A UK bank doesn't show up at all until 31st place.

Given that we all know Greece is really insolvent, this is a very serious concentration of bad assets in one collection of Banking systems. This is also the real reason that the Greek crisis has lingered on for so long.

Any resolution of the fiscal aspects of the Greek situation - you can't fix the economic aspects at all - has the fatal side-effect of exposing the situation Euro-area Banks are in. As long as the ECB drip-feeds cash to Greece, they can go on pretending that Greek debt is an "asset" that it is safe for a Bank to own. But the minute they try to *actually* resolve the situation, their own Banking systems are liable to blow up under them.

If the Europeans *could* resolve the Greek situation, they obviously would. They can't. It's as simple as that.

Yep we know, very scary but we know.

Scarier still was watching Argentina's Economic Collapse on You Tube..Argentina then, Greece Now

.

Especially as someone commented,

"This time its very different, because all the life boats are chained to the sinking ships"

Let the band pay on...

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Pedro, thanks for that link...

On the Comments to Telegraphs article came this...

Yep we know, very scary but we know.

Scarier still was watching Argentina's Economic Collapse on You Tube..Argentina then, Greece Now

.

Especially as someone commented,

"This time its very different, because all the life boats are chained to the sinking ships"

Let the band pay on...

You also then have to raise the question where's the new LTCM?

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thanks for that.never normally read the comments.

every day,I feel like hotairmail's avatar at some point.we are governed by people who don't seem to understand the scale of the crisis we face or if they do,aren't prepared to take the tough decisions that need to be taken to right the situation.history is our guide in all these things,and whilst there's clearly an element in society that's willing to consider how bad it might get,the bulk of people jsut want to get back to the free moeny junket they've been on for the last forty years.the last ten have been the most excessive I concede,but the reality is that the roots of this crisis were slotting into place a few decades ago imo.

by far the most powerful thing that commenter said was this:

'This means that all this debt can't be reduced without *all* Eurozone citizens taking a pretty serious haircut on their standard of living, their social benefits, their pensions.'

the french monarchy fell some 13 years after their victory in the american war of independence

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

'Economic factors included hunger and malnutrition in the most destitute segments of the population, due to rising bread prices (from a normal 8 sous for a four-pound loaf to 12 sous by the end of 1789)...

Another cause was the state's effective bankruptcy due to the enormous cost of previous wars, particularly the financial strain caused by French participation in the American Revolutionary War. The national debt amounted to some 1,000–2,000 million[citation needed] livres...... France's inefficient and antiquated financial system was unable to manage the national debt, something which was both partially caused and exacerbated by the burden of an inadequate system of taxation.'

when the people start worrying about what's for dinner and not what's on sky,it'll be game on.weak sterling,imported food and fuel,fiscal deficits,current account deficits,rapacious public sector unions/bankers.............not gonna be pleasant.

That shows the commentator is clueless and talking a load of ********. The only thing which indicates whether europe is living beyond its means is its balance of trade, and that is tending towards being balanced. For individual countries that might not be but that is counterbalanced by others living below their means.

Thus the idea that ALL eu citizens need for some reason to reduce their standing of living is beyond absurd. The real productive capacity of the eurozone is unchanged. The debt problems are purely a monetary phenomenon.

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Thus the idea that ALL eu citizens need for some reason to reduce their standing of living is beyond absurd. The real productive capacity of the eurozone is unchanged. The debt problems are purely a monetary phenomenon.

That's exactly what I think. But, there is a realisation starting to dawn on me that it's really about control and exploitation rather than a way of sharing or rationing resources.

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  • 312 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%



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