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From: Robert Baer on 28 Apr 2010 20:03 John Larkin wrote: > http://apnews.myway.com/article/20100428/D9FC0ES80.html > > Europe has an interesting dynamic. Multiple countries share a > currency. So if one country, especially a small one, decides to spend > more than they have, the other, presumably more prudent countries, > wind up paying for it. > > In a single country with a single currency like the US, if we spend > more than we have, we'll print money to cover it, and everybody in all > the 50 states shares in the resulting inflation. > > Europe has national deficit rules to prevent excess inflation of the > euro, but they aren't followed very well. Everybody has the incentive > to cheat. > > Yikes! First Greece, then Portugal, and just now Spain! > > A 2-year Greek bond yields 23% > > > John > > Do not forget the other PIIGS: Italy is not too far behind..
From: Martin Brown on 29 Apr 2010 05:11 John Larkin wrote: > http://apnews.myway.com/article/20100428/D9FC0ES80.html > > Europe has an interesting dynamic. Multiple countries share a > currency. So if one country, especially a small one, decides to spend > more than they have, the other, presumably more prudent countries, > wind up paying for it. Greece should never have been allowed into the Euro in the first place. Their books were seriously cooked to qualify. Now the chickens come home to roost - looks like Germany will be footing the bill. There is a fantastic opportunity now for the spivs and speculators to deliberately sink the economies of Greece and then Portugal to extract money from the other Eurozone countries by extortion. > > In a single country with a single currency like the US, if we spend > more than we have, we'll print money to cover it, and everybody in all > the 50 states shares in the resulting inflation. > > Europe has national deficit rules to prevent excess inflation of the > euro, but they aren't followed very well. Everybody has the incentive > to cheat. > > Yikes! First Greece, then Portugal, and just now Spain! > > A 2-year Greek bond yields 23% If you ever get paid. Only a madman would lend the Greek government money. OTOH if you buy insurance off AIG it might still be profitable. Regards, Martin Brown
From: TheM on 29 Apr 2010 07:28 >"Michael" <mrdarrett(a)gmail.com> wrote in message news:f4d5b530-1b2b-4fb8-b8a7- > >California's bond ratings are rock solid in comparison... >http://www.treasurer.ca.gov/ratings/history.asp > >Shocking. > >Michael But California is even deeper in debts, 200% their BDP is it? M
From: Dirk Bruere at NeoPax on 29 Apr 2010 08:23 On 28/04/2010 17:00, John Larkin wrote: > http://apnews.myway.com/article/20100428/D9FC0ES80.html > > Europe has an interesting dynamic. Multiple countries share a > currency. So if one country, especially a small one, decides to spend > more than they have, the other, presumably more prudent countries, > wind up paying for it. > > In a single country with a single currency like the US, if we spend > more than we have, we'll print money to cover it, and everybody in all > the 50 states shares in the resulting inflation. > > Europe has national deficit rules to prevent excess inflation of the > euro, but they aren't followed very well. Everybody has the incentive > to cheat. > > Yikes! First Greece, then Portugal, and just now Spain! > > A 2-year Greek bond yields 23% The end result is going to be either that Greece leaves the Euro or they are going to be forced to make savage cuts to their public spending. -- Dirk http://www.transcendence.me.uk/ - Transcendence UK http://www.blogtalkradio.com/onetribe - Occult Talk Show
From: Jan Panteltje on 29 Apr 2010 08:48
On a sunny day (Thu, 29 Apr 2010 10:11:47 +0100) it happened Martin Brown <|||newspam|||@nezumi.demon.co.uk> wrote in <l3cCn.99246$u62.71930(a)newsfe10.iad>: >> A 2-year Greek bond yields 23% > >If you ever get paid. Only a madman would lend the Greek government >money. OTOH if you buy insurance off AIG it might still be profitable. > >Regards, >Martin Brown Democratic party == George Soros, he found a new game perhaps, he was good and made a fortune with speculating on the devaluation of the British pound many years ago. Maybe, he has so much power [= money] now, he plays Greece, and Euro these days. He once did give a lecture at some university with as subject 'On the destabilisation of Europe'. I tried to get the text, but never succeeded. I have his book 'The Alchemy of Finance', helped me a lot to understand these issues. |