End of the Euro..............

Unfortunately like the pound and us dollar the euro is backed by bugger all, no precious metals its just simply created from thin air on worthless paper and ultimately the currency will fail.

I wonder how long the US can keep going for their debt is now over 100% gdp?

Blame Blair and his delusions of one day becoming Euro President whilst getting his missus to line the family coffers with our money, for getting us in this deep.

[punyXpress]

[QUOTE=metalmonkey;2625492]If the Euro does fail, what will happen to our trade? The eurozone is the biggest market, to which the UK sells to.
But dont we buy more from them?
In which case we'll WIN!

[andrewsmith]

Its Doomed

Good idea in concept but allowing countries to lend on another rates aint

[dizzyblonde]

As I see it, the debt collectors went to Greece, and the Greeks couldn't pay(they still get offered money, but they are looking to default again soon), so debt collector goes to the next country on the list to get money......after all, if they are to keep lending money they need to recoup it from somewhere....once they have gotten through the top of the list, Greece, Italy, Spain, Portugal and Ireland, if they can't recoup their losses from these countries, then those right down the bottom of the list will be getting their door knocked on with a sledgehammer, thus ending the Euro.

[keith_d]

Definitely interesting times for euro-land, and for the UK too.

IMO the underlying problem is that both in the UK and euro-land we've been electing governments that are spending more than the receive in revenue. Not just once, but year after year.

As a result they have to borrow the difference by issuing bonds, effectively promises to pay out of future revenue. Rather like 'payday' loans, interest rates on bonds are determined by the lender's perception of the risk. If the bond markets think the risk of non-payment has increased the interest rate will also increase.

While our economies were all growing steadily the risk of non-payment was low, and government borrowing costs reflected this. But following a loans debacle in the US, economic growth slowed abruptly and some countries (PIIGS) started to look a whole lot more risky. So interest rates on the bonds they issue to fund spending increased.

Like a payday loan, there comes a point where the interest piles up faster than you can repay it. At that point, like Greece, you're in the brown ikky stuff. This could result in Greece not being able to pay it's debts to banks around the world, which will have the same effect as the property debacle which started this whole sorry mess in the first place. Banks not being able to lend the money we all need to do business.

When Ken Clarke was chancellor under the John Major government, we had a surplus. No debt, that was all created by Callaghan, then repaid by Thatcher and Major. Yes, the books were balanced, and we actually lent to other countries.

Then friend Blair and the Labour lot got in, and look what happened.

So they are plainly to blame.

Bring back the iron lady

What are they complaining about italys interest rate has gone up to 7% ish, wish i could get a loan at 7%.

[andrewsmith]

Originally Posted by bluefishman

What are they complaining about italys interest rate has gone up to 7% ish, wish i could get a loan at 177%.

edited for you

That probably closer too