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Euro Crisis Foretold But They Didn't Listen


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Very good article.

Since I started posting here I have been telling people that the Euro was doomed from the start.

And it doesn't even take a genius to work this out - just a very basic knowledge of history.

Basically, Germany has used currency manipulation to pay for reunification and now expects countries in the Eurozone to spend the next 30+ years working as debt slaves for the 5th Reich.

Unfortunately we have spineless appeasers like that back stabbing neo-liberal Michael Heseltine saying that we must capitulate because the consequences would be too terrible to contemplate - well the consequences of giving in would be worse.

The question is, where is our Winston Churchill or Margaret Thatcher?

Because our current leaders show absolutely no sign of having any backbone or having the slightest clue what to do about what is happening.

Unless someone gets a grip extremely rapidly this isn't going to end well.

:(

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The Eurozone is going to come out of this economically stronger in the end.

If we were in the Eurozone, we'd be forced to properly address our structural debt problems too, rather than sweeping them under the carpet of devaluation. Instead, we'll just carry on laughing and finger-pointing as we continue our steady descent into relative poverty, wondering why we can't afford German cars or holidays on the Med any more. :(

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Since I started posting here I have been telling people that the Euro was doomed from the start.

And it doesn't even take a genius to work this out - just a very basic knowledge of history.

The Euro was doomed because they had rules and broke them before the Euro was even created. The problems of the PIIGS was never addressed, there is only so long you can live on the debt before you become bankrupt. The cheap interest rates the PIIGS got access too was a short term blessing for the German economic machine it rescued it from a recession earlier in this decade.

ECB policy has been for Germany, like BoE policy is purely for London.

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Very good article.

Since I started posting here I have been telling people that the Euro was doomed from the start.

And it doesn't even take a genius to work this out - just a very basic knowledge of history.

Basically, Germany has used currency manipulation to pay for reunification and now expects countries in the Eurozone to spend the next 30+ years working as debt slaves for the 5th Reich.

Unfortunately we have spineless appeasers like that back stabbing neo-liberal Michael Heseltine saying that we must capitulate because the consequences would be too terrible to contemplate - well the consequences of giving in would be worse.

The question is, where is our Winston Churchill or Margaret Thatcher?

Because our current leaders show absolutely no sign of having any backbone or having the slightest clue what to do about what is happening.

Unless someone gets a grip extremely rapidly this isn't going to end well.

:(

Why does everyone knock Germany? They are the only ones that stuck to the rules.

And how did Germany pay for its reunification by lending money to other countries?

Germans were foolish to lend to the PIIGS at such low rates of interest, but the lesson is now learned. The euro can survive if they let nations default and for pay inside countries to move to a value commensurate with the value that person produces. Such a policy needs a bit of moral hazard however, something that is sadly lacking.

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Why does everyone knock Germany? They are the only ones that stuck to the rules.

And how did Germany pay for its reunification by lending money to other countries?

Germans were foolish to lend to the PIIGS at such low rates of interest, but the lesson is now learned. The euro can survive if they let nations default and for pay inside countries to move to a value commensurate with the value that person produces. Such a policy needs a bit of moral hazard however, something that is sadly lacking.

The germans lent to the piigs in order to secure the inevitable default and hence, domination.

Why on earth would you want worthless PC numbers or useless paper if you were capable of manufacturing as much as you want anyway?

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