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catdog1121

Euro, Uk Saving Grace Or Downfall

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So we all know that the reason the UK has faired better than greece, Italy, Ireland, spain etc even though our debt is just as bad is the fact we devalued our currency. A lot of people are saying thank got were not in the Euro.

It made me think though if the Euro didnt exist all those other countries would have devalued their currencies just as we have, this would have meant the UK's own currency devaluation would have had less of an effect. So in a way it was our saving grace that other Euro countries could not devalue their own currencies.

However, it has now come about that all these other countries are now in so much trouble that I believe it is just a matter of time before global credit crunch 2 is here, The debt level being run up by the western world is far to great to be sustainable. We think we have had it bad, Euro countries can only keep buying other countries debts for so long, all they are doing is putting of the inevitable fall out. This will bring down the UK as well regardless of extra QE and devaluation. So the Euro will be the worlds downfall.

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What I don't understand is that if devaluation is the solution to excessive debt, why can the ECB not permit a devaluation of the Euro?

It would boost German competitiveness to stratospheric proportions and drag the PIIGS heads just above the water line. Really the Euro trading at 87p and $1.4 is a nonsense anyway. Dollar parity and £0.64 was the average level before the credit crunch. I can't understand how the strong Euro does any favours to the EZ in the current climate.

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What I don't understand is that if devaluation is the solution to excessive debt, why can the ECB not permit a devaluation of the Euro?

It would boost German competitiveness to stratospheric proportions and drag the PIIGS heads just above the water line. Really the Euro trading at 87p and $1.4 is a nonsense anyway. Dollar parity and £0.64 was the average level before the credit crunch. I can't understand how the strong Euro does any favours to the EZ in the current climate.

Surely it's because Sterling and Dollar devalued faster than the Euro? The Krauts can't let the Euro sink too low globally as it affects thier IMPORT dependent industries.... Rock and a hard place for them surely.

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What I don't understand is that if devaluation is the solution to excessive debt, why can the ECB not permit a devaluation of the Euro?

I don't think the ECB are doing anything to keep the Euro at its current level.

It just sits at that level despite the PIIGS

tim

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So we all know that the reason the UK has faired better than greece, Italy, Ireland, spain etc even though our debt is just as bad is the fact we devalued our currency. A lot of people are saying thank got were not in the Euro.

It made me think though if the Euro didnt exist all those other countries would have devalued their currencies just as we have, this would have meant the UK's own currency devaluation would have had less of an effect. So in a way it was our saving grace that other Euro countries could not devalue their own currencies.

However, it has now come about that all these other countries are now in so much trouble that I believe it is just a matter of time before global credit crunch 2 is here, The debt level being run up by the western world is far to great to be sustainable. We think we have had it bad, Euro countries can only keep buying other countries debts for so long, all they are doing is putting of the inevitable fall out. This will bring down the UK as well regardless of extra QE and devaluation. So the Euro will be the worlds downfall.

If the euro didn't exist those countries wouldn't have been able to borrow at such a low rate, so wouldn't be in as much debt and wouldn't have to devalue at anywhere near the dame rate.

From what I can see Germany are really taking the piss with the agenda they have set out basically stealing jobs from elsewhere in Europe and generally being a parasite off of the smaller nations all because they refuse to devalue.

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  • 285 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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