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European Debt Crisis Could Last A Decade, Warns Bundesbank Chief Jens Weidmann

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http://www.telegraph.co.uk/finance/financialcrisis/10001631/European-debt-crisis-could-last-a-decade-warns-Bundesbank-chief-Jens-Weidmann.html

"Overcoming the crisis and the crisis effects will remain a challenge over the next decade," Mr Weidmann, who is also a Governing Council member at the European Central Bank, told the Wall Street Journal.

"The calm that we are currently seeing might be treacherous" if reforms are not quickly taken across Europe, he added.

The euro fell sharply after Mr Weidmann said the ECB could reduce interest rates further if economic data warrant it.

The ECB decided to leave interest rates on hold at its April policy meeting, but ECB President Mario Draghi said the bank would "monitor very closely" all data and stand "ready to act" to boost the recession-hit eurozone.

As the worlds central banks keep digging, 10 years seems rather optimistic.

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pictures tell a thousand words.

songs speak a million!!!!!

http://www.youtube.com/watch?v=bRdo7WXTVoM

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No way, the Spanish, Italians and Greek people will definitely not be enduring any kind of austerity for anywhere near that long, in fact I would say we are near breaking point already.

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"The calm that we are currently seeing . . . . " ©Jens Weidmann

Yeah, right. It's ever so calm if the media want to see it that way. (Until the German Elections.)

Might not actually reflect what's happening on the streets in Greece, Spain, you name it.

Have you noticed this 'post-crisis' newspeak that keeps popping up? Christine Lagarde used it recently: 'We can't have pre-crisis banking in a post-crisis world' , unquote. And so did Eurogroup's Dijsellbloem on Cyprus: "In a post-crisis situation, you need mechanisms to deal with these problems'

Agree with some other posters. It's going to be hard for denial to last a decade.

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No way, the Spanish, Italians and Greek people will definitely not be enduring any kind of austerity for anywhere near that long, in fact I would say we are near breaking point already.

They will be finding it a lot worse once it goes, people are going to start starving to death and not in their thousands ;)

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"Overcoming the crisis and the crisis effects will remain a challenge over the next decade," Mr Weidmann, who is also a Governing Council member at the European Central Bank, told the Wall Street Journal.

"a challenge over the next decade".

Don't forget the 20 year debt overhang - and it's not as if the debt is anywhere near ending for the overhang to be even near to starting.

http://

blogs.wsj.com/economics/2013/04/16/reinhart-rogoff-response-to-critique/

Note that because the historical public debt overhang episodes last an average of over 20 years, ....

Edited by billybong

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Yeah, right. It's ever so calm if the media want to see it that way. (Until the German Elections.)

Might not actually reflect what's happening on the streets in Greece, Spain, you name it.

Have you noticed this 'post-crisis' newspeak that keeps popping up? Christine Lagarde used it recently: 'We can't have pre-crisis banking in a post-crisis world' , unquote. And so did Eurogroup's Dijsellbloem on Cyprus: "In a post-crisis situation, you need mechanisms to deal with these problems'

Agree with some other posters. It's going to be hard for denial to last a decade.

I hadn't but I shall now keep an eye out for that.

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The ECB decided to leave interest rates on hold at its April policy meeting, but ECB President Mario Draghi said the bank would "monitor very closely" all data and stand "ready to act" to boost the recession-hit eurozone.

They can be "ready to act" as much as they like but if anything was working or was going to work they would have done it already.

The only surprise is that they didn't say they were "ready to act decisively".

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They will be finding it a lot worse once it goes, people are going to start starving to death and not in their thousands ;)

What nonsense.

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just wondering when any of the debt that killed it all in 2007/8 has been sorted, so we are no even in "post crisis".

if anything, that remains and people still claim to have wealth tied up in it, that it is cashable in full and it can be reinvested at will.

Add to that all the extra debt that has appeared and we have a crisis on a crisis, heading to the mother of all crises.

Of course, according to MMTers, this debt is great for the economy...for without debt, there can be no wealth.

I know we dont live in the Garden on Eden...but counting beans leads to no wealth at all.

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They will be finding it a lot worse once it goes, people are going to start starving to death and not in their thousands ;)

I am not sure about that. Default, print your own, and start trading within the countries borders and with other countries? It is the debt payment structures that are strangling them?

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What nonsense.

Can you tell me how starvation can be avoided by a nation that cannot produce enough food to feed its population, that has no money, only debt, and imports more manufactured goods than it exports. ;)

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Can you tell me how starvation can be avoided by a nation that cannot produce enough food to feed its population, that has no money, only debt, and imports more manufactured goods than it exports. ;)

Sorry, I didn't know you were talking about the UK, but in that case I agree with you! :o

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Can you tell me how starvation can be avoided by a nation that cannot produce enough food to feed its population, that has no money, only debt, and imports more manufactured goods than it exports. ;)

The country defaults, goes back to it`s old currency and buys imports at the new echange rate? Inflation might take off for a while, but the globalised nature of things is a natural drag on this? They might not be popular with the bond markets, but other countries will sell them food?

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Can you tell me how starvation can be avoided by a nation that cannot produce enough food to feed its population, that has no money, only debt, and imports more manufactured goods than it exports. ;)

Expats will leave, the hotel balconies will make excellent windowbox veggie gardens.

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The country defaults, goes back to it`s old currency and buys imports at the new echange rate? Inflation might take off for a while, but the globalised nature of things is a natural drag on this? They might not be popular with the bond markets, but other countries will sell them food?

They will sell, but what will we buy with?

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  • 243 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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