Eurozone/ worldwide monetary crisis.

[JOAO LA PEZ]

Been following with interest the unfolding events and the lets throw good money after bad policy, some questions spring to mind, interested in what others have to say.

1, Can you borrow your way out of debt ?.

2, will it take a worldwide recession to enable a proper restart of the worldwide economy?.

3, Do any of them (world leaders) have a clue ?.

4, Will it end with a major war as in previous times ?.


For me
1, no chance
2, Pain and suffering always brings about a rethink in attitudes, and would help to get rid of the benefits culture we now endure, so bring it on.
3, Yes, but its left wing liberal, so in fact No.
4, Lets hope not, but history would seem to dictate the possibility is real, and the UN is still as toothless as the league of nations was in the 1920s/30s.

[M1F2R3]

I've been reading through the UBS statistics (http://www.ubs.com/1/e/hsceconomics/statistics.html) and other sources too. There is a real risk of a "hard default" should Greece fail over the next few hours/days/weeks. Should this happen, France (particularly their banks who have an interest in Greece) will be severely exposed to the economic crisis.

1.) Simply... No. Leaving politics aside, economically it's a proven paradox but I'm sure *some* politicians would tell you otherwise.
2.) I think so, perhaps even a depression to "rethink" attitudes.
3.) World leaders are highly educated, Obama is a graduate of Columbia and Harvard Law school, Cameron is Brasenose, Oxford and the list continues... I think the EU has become so diverse (politically, which results in a varying economic stance) that nobody can actually truly agree!
4.) I pray this situation doesn't end in a war, really.

If Greece has the right to a referendum... I want one too.

[patrickspark]

1. i dont beleive so
2. probably. but i fear for those at the very bottom.
3. not so far
4. i dont think so, the very thing that causes war (money) might prevent a future one arising from this issue.

[Bad-Yeti]

Been following with interest the unfolding events and the lets throw good money after bad policy, some questions spring to mind, interested in what others have to say.

1, Can you borrow your way out of debt ?.
Absolutely not, regarding the Eurozone, Germany and to a lesser degree France are the main problem here, the "PIGS" are to blame of course but the Euro should have become far weaker, however the Germans have continued to support this failing idea using it's own huge resources, but they have loaned vast sums of money to these other companies so all that is really happening is: Germany Gives Loans -----> recipient can't afford payments -----> Eurozone members offer bailouts ----> Bailout countries are paying all interest to Germany.....this will eventually go POP! When it does ....oh boy. The best option is that Germany leave the Euro, the Euro drops and then stabilises, however nobody will then be able to afford German products.

2, will it take a worldwide recession to enable a proper restart of the worldwide economy?.
I believe so, the problem here is that all these governments are desperately trying to hold off this "Total Disaster" not realising that it is just making the situation worse, we need a total collapse and the longer we delay the worse it's going to be. Alot of my customers are selling billions of dollars of shares as all indications are.....this ship's gonna sink.

3, Do any of them (world leaders) have a clue ?.
Yes, alot of them do, but here's the problem, they are quite rightly so primarily concerned with their own nations stability and well being / or they are MEP's who frankly just want to line their own pockets. Also, they quite obviously want to get re-elected so they don't want to upset the population, look at what we have now, 3 terms of Labour and overspending on public services and Government jobs, then the Conservatives get in, make some tough choices and are labelled the bad guys. The short of it is that people are personally greedy, lazy and have short memories i.e. Want big house and sports car, don't want to save for it then borrow and when they can't afford it go looking for someone to blame!

4, Will it end with a major war as in previous times ?.
Yes, but not war as we currently think of it, no-one wants to push the button. China will continue to buy up debt, becoming the powerhouse of the world, the USA will not be able to accept this, there will be embargoes between them and China will place demands on the US and Europe (Oi, give us our money back ( particularly as they continue to grow and become more democratic therefore requiring more money internally)) tensions will escalate.

Shit times for alot of people in the next decade I think.

Maybe war would actually be a good option, it creates employment and opportunity plus weeds out a great deal of the chaff. (maybe we could send all out benefit scrounging out to fight).

Cuba should be relatively unscathed though as their economy is exceptionally self reliant

Just my take on things

[monkey66]

To many economies (and people) living way outside there means. A huge financial industry who basically skim commission without creating anything. Monetary union without political union. Short-termism of liberal democracy.

We are screwed ....light one up

[tippexx]

1, Can you borrow your way out of debt ?.
A. In theory Yes. In reality No.

2, will it take a worldwide recession to enable a proper restart of the worldwide economy?.
A. No. The 'haves' have too much at stake to allow it to happen, they'll just rein their money in, keep their heads down and wait to start in the same old way all over again. A proper restart would require Divine Intervention.

3, Do any of them (world leaders) have a clue ?.
A. No. And never have done. Judgement, honesty and common sense go out the window as soon as the first whiff of power hits their nostrils.
I don't believe the game that Merkel and Sarkosy are attempting to play has much to do with rescuing anyone other than themselves and increasing their power base. But the look on the face of their IMF puppet Lagarde on TV last night suggested plans might be going horribly wrong.

4, Will it end with a major war as in previous times ?.
A. Dictators armed with nuclear weapons could be a problem. But, as most of them don't appear to be in debt, or involved in the debt issues to any great extent it seems unlikely.

In many ways I feel sorry for Greece. OK, it's been a bit over generous in how it rewards its Public Sector, GDP is low, but is that surprising, I can't think of one thing I might have bought with Made in Greece written on it. Corruption is an issue, though I doubt any more so than anywhere else in Europe. Their debt is catastrophic, but had he the mind Bill Gates could pay it for them. And if Germany cared to repay all the money it stole from Greece during WWII they wouldn't be in debt at all. After that war Greece had to pick itself up in a deficit, German recovery was assisted by the USA and the Marshall Plan.

[JOAO LA PEZ]

Hands up all those who are surprised by this outcome.

http://latestnews.virginmedia.com/news/uk/2011/11/04/cameron_rallying_call_at_g20_summit