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Deckard

Angie & Sarko: More Eu Meetings Will Be Enough To Save The Euro

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The outcome of the Franco-German axis meeting was well worth waiting for :rolleyes:

Sarkozy and Merkel push tax plan, closer economic coordination

(Reuters) - The leaders of France and Germany, under pressure to counter a debt market crisis in Europe, have agreed to float proposals in September for a tax on financial transactions and push for closer joint governance of economic policy, French President Nicolas Sarkozy said on Tuesday.

After talks in Paris, Sarkozy said he and German Chancellor Angela Merkel were also proposing that all 17 euro zone countries commit to balanced finances and write that goal into their constitutional law by summer 2012.

Among other measures announced, he said they would also seek to ensure better cross-border economic government for the euro zone via twice-yearly meetings of leaders and the creation of a two-and-a-half-year presidency to steer this forum.

"We want to express our absolute will to defend the euro and assume Germany and France's particular responsibilities in Europe and to have on all of these subjects a complete unity of views," Sarkozy told a news conference at his Elysee Palace offices, where he was flanked by Merkel.

Stop press: it's all sorted out.

Without consulting the other member states, Angie & Sarko resolved that by meeting every six month over coffee and canapes, under the supervision of a newly elected president, EU "leaders" are going to stop the rout.

Well, that was easy, wasn't it? :lol::lol:

Edited by Deckard

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The outcome of the Franco-German axis meeting was well worth waiting for :rolleyes:

Sarkozy and Merkel push tax plan, closer economic coordination

Stop press: it's all sorted out.

Without consulting the other member states, Angie & Sarko resolved that by meeting every six month over coffee and canapes, under the supervision of a newly elected president, EU "leaders" are going to stop the rout.

Well, that was easy, wasn't it? :lol::lol:

They didn't do anything. I can't imagine the market will take this well.

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They didn't do anything. I can't imagine the market will take this well.

They ruled out Eurobonds, and that's all that matters. The rest is just fluff.

SARKOZY ON EURO BONDS

"We have exactly the same position on euro bonds ... Euro bonds can be imagined one day, but at the end of the European integration process not at the beginning."

MERKEL ON EURO BONDS

"The question is what is right now for overcoming the current phase of the crisis. Over and over again, I feel that people are looking for the one event, the one method which will solve everything and lift us out of the crisis, and in this context people often say that the last resort is euro bonds.

"I neither think that Europe is at the point of needing its last resort, nor do I think that we can solve these problems with what I have called a bang. And therefore I think that what we are proposing here is the means with which we can solve the crisis right now and win back trust, step by step ... I do not think euro bonds will help us in this."

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Trichet just shot himself *

* Ok, I made that up.

:D

Yep, there was no mention whatsoever of an expanded EFSF

JCT is in buying PIIGS bonds for the long haul.

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Would be interesting to have a link to a euro savvy commentator to interpret this. Here's an interesting solution to the problem for the periphery - lessons from Argentina suggest using a quasi currency for Greece etc:

The provinces that were facing severe fiscal problems and could not issue debt in the capital markets ended up printing the so-called QCs to pay wages and other expenditures. These quasi-currencies were used to pay current expenditures such as wages and the purchase of goods and services. They were in fact debt instruments that looked like peso bills, and were used in daily transactions and to pay provincial taxes. Most of the provincial QCs traded at a discount over the peso.

The QCs helped to limit the recessionary effects of the financial constraints, as they provided liquidity and provided financing to sub-national governments for whom the only alternative would have been to go into arrears. Most of the provincial QCs traded at a discount, so in effect the provinces managed to generate a depreciation relative to the peso.

The QCs could eventually become an alternative for countries like Greece, who have lost access to the voluntary debt markets and have an overvalued currency. It is perhaps the only way to temporarily achieve a depreciation while staying in the Eurozone. It would imply a dual currency system (i.e. the co-existence of the euro and say the drachma), which can perhaps be useful in a transition while the country deals with the debt problems and improves it long-term competitiveness.

The working of a dual currency system is not easy though, especially because it can create problems in the banking system, and the extent to which the new currency depreciates relative to the euro can affect the ability of firms and individuals to pay the loans denominated in euros.

http://www.voxeu.org/index.php?q=node/6877

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Guest spp
Plan for European economic government with single leader, drawn up after mini-summit

Where are all the NWO conspiracy bashers now... <_<

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Where are all the NWO conspiracy bashers now... <_<

Reality check: there is no mention of a single leader, you made that up.

This is no NWO conspiracy, just a vain attempt by Merkozy to convince the world that scheduling a few more meetings between EU politicians is going to sort out the Eurozone problems.

Nothing sinister about it, pathetic more like.

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So a couple of people decide that for 17 or so countries. Sounds pretty democratic.

The theft of sovereignty certainly puts into perspective the recent water bottle thefts.

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The Today programme had a nice item about Italy this morning - its footballers are going on strike because they are being asked to pay tax for the first time in their careers. They have apparently always assumed that the clubs pay their taxes. I kid you not.

Then there is the issue of 'towns' as small as 500 people all across Italy having their own Mayors and ensuing town hall style organisations - towns with less than a thousand people are now being made to 'join' the next biggest town so, naturally, people are up in arms.

Then there is the issue of the cheap restaurant and free barbershop that Italian MPs have been entitled to - it is going and they don't like it.

In short, no wonder the Germans will not back Eurobonds. They believe that as soon as they back a Eurobond that the PIIGS will go back to spending willy nilly as they have been doing for years.

Expect no Eurobonds anytime soon.

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Would be interesting to have a link to a euro savvy commentator to interpret this. Here's an interesting solution to the problem for the periphery - lessons from Argentina suggest using a quasi currency for Greece etc:

The provinces that were facing severe fiscal problems and could not issue debt in the capital markets ended up printing the so-called QCs to pay wages and other expenditures. These quasi-currencies were used to pay current expenditures such as wages and the purchase of goods and services. They were in fact debt instruments that looked like peso bills, and were used in daily transactions and to pay provincial taxes. Most of the provincial QCs traded at a discount over the peso.

The QCs helped to limit the recessionary effects of the financial constraints, as they provided liquidity and provided financing to sub-national governments for whom the only alternative would have been to go into arrears. Most of the provincial QCs traded at a discount, so in effect the provinces managed to generate a depreciation relative to the peso.

The QCs could eventually become an alternative for countries like Greece, who have lost access to the voluntary debt markets and have an overvalued currency. It is perhaps the only way to temporarily achieve a depreciation while staying in the Eurozone. It would imply a dual currency system (i.e. the co-existence of the euro and say the drachma), which can perhaps be useful in a transition while the country deals with the debt problems and improves it long-term competitiveness.

The working of a dual currency system is not easy though, especially because it can create problems in the banking system, and the extent to which the new currency depreciates relative to the euro can affect the ability of firms and individuals to pay the loans denominated in euros.

http://www.voxeu.org/index.php?q=node/6877

Gold, silver, copper became coinage for a good reason - it's worth something by weight alone. You don't need a government to stamp some statist symbol on them to mean they're worth something.

It gets better still, now that we have the Internet. Not only can we transfer ownership of the aforementioned online (even using smart phones on the move), but we also have Bitcoins (only exist online) and concepts like Ripple Pay (distributed mutual credit).

People just need to wake up and realise that not only do they not need Euro/Dollar/Pounds, but they also don't need the government to say so either.

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They ruled out Eurobonds, and that's all that matters. The rest is just fluff.

No it's far from fluff.

You say, 'oh they didn't do anything'.

They did indeed. They decided on a tax on financial transactions - throughout the EU. This will be on top of the proposed EU plan to raise 1% VAT across member states to fund more central EU government and power.

And along with this will come a new post of an EU Generalissimo.

Remember, these people are politicians. They were not discussing economics or the problems of citizens - they don't understand such trivial things - only how to cement their centralised power.

That's what they spent the summit doing.

They can sell the fear of Euro collapse to grab this power.

That the Euro will probably collapse anyway is neither here nor there, from a Merkel-Sarkozy point of view.

It's the Naomi Klein book coming true again.

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  • 284 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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