What do y'all make of this European sovereign debt crisis?
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Jonas.dini
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Will the IMF and EU stay a step ahead of bonds? Or is a default inevitable?
Is it possible that the EU and/or the euro-zone might lose some members?
What should the European Central Bank do? Can it get away with a major quantitative easing program?
Answer these questions or just drop any thoughts you might have on the matter.
Is it possible that the EU and/or the euro-zone might lose some members?
What should the European Central Bank do? Can it get away with a major quantitative easing program?
Answer these questions or just drop any thoughts you might have on the matter.
Comments
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Ok I'll start by saying that I think the domino theory of defaults has the danger of becoming a self fulfilling prophesy, and in the meantime there is a limit to the amount of credit the IMF can extend to EU states. If the dominos do fall, things can get ugly fast and the European Central Bank will either have to create a lot of free credit or the eurozone is going to lose members when states default and decide their only way out is devaluation.
The EU or eurozone could issue bonds and then the ECB could get into the QE business for real, but so far Germany and France are saying no. Is that just because Germany is Europhile and doesn't want to be on the hook for all those loans, or is it because they're scared that all this will drag down the euro and that will hurt its chances as a reserve currency contender? I think the former, of course if I was Germany I'd pretend it's because of the latter. -
The entire EU is basically a German super state. It was designed to fail, and thereby bankrupt the whole of Europe.
Leaving Germany on top.
Keep in mind that 14% of the German people are fundamentally down with ? , still...
If there is a disintegration of the EU it is remotely possible they get a new ? .
Everything going on in the world seems to be leading up to WWIII. -
The Prime Minister wrote: »The entire EU is basically a German super state. It was designed to fail, and thereby bankrupt the whole of Europe.
Leaving Germany on top.
Keep in mind that 14% of the German people are fundamentally down with ? , still...
If there is a disintegration of the EU it is remotely possible they get a new ? .
Everything going on in the world seems to be leading up to WWIII.
the ? is you talmbout @ the bolded?
conspiracy ? I swear -
]The Prime Minister wrote: »The entire EU is basically a German super state. It was designed to fail, and thereby bankrupt the whole of Europe.
Leaving Germany on top.
Keep in mind that 14% of the German people are fundamentally down with ? , still...
If there is a disintegration of the EU it is remotely possible they get a new ? .
Everything going on in the world seems to be leading up to WWIII.
Welp...wasnt expecting this answer lol -
I donot think the EU will lose members.....there will be sanctions never the less....look at it like this, lehman bros is 1 bank, it fell and the whole world felt it, simply because all incredible nr of banks/governments/corporations were connected which eachother through bonds etc. Now picture a current EU member like Greece gettin shut of the EU.....that would have a zillion times the effect of the downfall of 1 bank like lehman bros. So for the worlds economies sake and the EU's sake it's wise to prevent such things(which is what the EU is doing offcourse).
The problem imo of the EU has always been it's idealitistic nature...in practice the southern members simply cannot keep up with the Northern(mainly the Benelux/Scandinavia and Germany) nations economic wise, still I feel that in due time(with eastern europe etc on the rise) and with the no borders/free traffic of people/goods etc in all aspects between (most) members is great and should serve as an example for the rest of the world. FOr example I have a dutch pasport, I can live and study/work etc in basically every EU nation without the need of visums/working permits etc. In fact I could have a job in Spain right now and travel back by plane everyday without any problems, eventhough there are a shitload of cultures/langueges over here , there are no borders/customs(500 million people +-) etc. I think the nature of the EU is a very dynamic/non structured one, the EU basically is a big shadow(social democratic) government that bonds all the other governments.
The European central bank isn't the bank of Europe. Europe has no bank. One stroll through an average European city and you'll notice dozens of different banks. There are ancient titans(banks that go back centuries) and new titans(RBS/ING/ABN-AMRO etc) every nation has a central bank as well, the European central bank(just like EU parlaiment) really don't have that much influence in banking/corporations. The entire EU really hasn't that much of an influence in Europe(nobody takes the European president seriously). The ECB needs to take care of the euro, but it are the several european powerhouses(germany/holland etc) that make the euro the euro, the ECB doesn't determine what happens with the euro, it are the Germans/Dutch/French etc that determine that.
I think the IMF is a American/European coalition. It protects both 'states'. China's influence for example has been miniscule in the IMF and still is minicsule compared to certain European nations and offcourse America. forget all the things our techer told us about the economy or what we read about the 'economy' and currencies and how ? should work etc. The IMF just pimpsmacks everybodies chakra's when they want 2.
