slapphead_otool

Most economists are now giving the world about 6 weeks to get its act together, or face a financial catastrophe. Everyone seems to be blaming Europe, and most Europeans seem to be blaming Greece, which seems a bit unfair.

Obama, the US Senate, consumerism, free trade agreements, greed, stupidity and ambition have driven us into this mess. Greece is just a lying cheating bunch of layabouts who climbed on the bandwagon.

At best Greece is going to default. At worst the Euro will collapse.

The best hope - a Greek default (which sounds like a sexual position but isn't) is still going to hammer the UK senseless, even though it isn't a Eurozone nation.

The UK has a commitment to provide 4.5% of IMF funds, via its membership of the IMF. This ratio was set years ago when the UK was richer and could afford it. The IMF are pretty brutal and wont give Greece a dollar until it sorts itself out, but when it does impose austerity measures (which will probably bring anarchy to the country) then the UK will put up its 4.5% of around 110 Billion Euros.

The UK is also committed to 14% of the European Financial Stability Mechanism - which has around 60 Billion Euros. You can kiss that money goodbye.

The Europeans may well try to increase this fund over the 60 Billion level. If so, the UK is in it, like it or not. The advantage of increasing the EFSM instead of the EFSF is that the EFSM includes the countries who had the common sense to stay out of the Eurofolly. Nice touch, getting those who kept out of it to pay for the stupidly of those who leapt into the trough.

Even worse than the known costs are the fall out impacts, creeping along like radiation in a post nuclear apocalypse.

Some British banks are exposed to Greek debt, and we may see them involved in another banking crisis.

Some British banks are exposed to European banks holding Greek debt. We will get dragged down with them.

The collapse of Greece will surely push further doubts on Ireland, which the UK will be expected to prop up.

Anyone who supported the EC, EEC, EU, and whatever else these economic idiots called themselves should now hang their heads in shame. They have wreaked havoc in the global financial markets, and cost the poor people of the UK a lot of money they cant afford.

there is no common Europe. There never was. It was a pipe-dream of Napoleon, and later Hitler. Both were megalomanic idiots - just like the current bunch of EU fanatics.

chris955

The Earth keeps turning.

renth

I'm expecting another 9/11 style false flag event any day now to take people's minds off the financial situation and to start another war.

I reckon Cyprus is the place to watch, that and Iran.

slapphead_otool

Indeed. Turning like a washing machine full of unemployed young people with no future, old people with no pension, and governments with no money. I don't want to be in it with your semen splattered smalls Chris.

chris955

I don't actually wear them but thanks for your concern.

sonlymewalter

So.....are you a Euro supporter or not mate? Stop sitting on the fence re this

slapphead_otool

Did i give away a hint?

sonlymewalter

PMSL ...aye

GarryP

Looks like they are going to default 50% of it, expand the EFSF to 2 trillion to lend to governments.

http://www.bbc.co.uk/news/business-15055713

So not the EFSM.

Still think Greece should have to hand over some islands for the money.

Still, I'm not sure you can default on 50% of the debt, and bail them out with even more money, and not have the Germans revolting.

slapphead_otool

Couldn't agree more. Greece lied quite openly to get into the Euro, and did stuff all to sort its woes out afterwards. Just bailing them out is rewarding idleness, stupidity and deceit. They should lose at least some islands and national treasures - if not total sovereignty.

I would rather give them back their bloody marbles and tell them to clear off then give them any money. Come to think of it - the new museum they arrogantly built to hold the marbles was built with EU money too!!!!!

IvanM

Who wants an dry island with olives?

A decade of stagnation was my prediction in 2008 and I am sticking with it. Central banks have enough weaponry to use to prevent a depression and extend the stagnation.

The Eurozone never had enough incentives to stop unsustainable debt. I still do not see anything has changed.

The EU as a common market has been and always will be a driver of growth. Political union is a folly.

carolinephillips

We should never have joined the Common Market in the 70,s- it was a deceitful thing the govt. did, abandoning our Commonwealth trading partners and shacking up with Johnny foreigner, who did with stealth and lies what various armies over the centuries could not.

Watch out for China taking over the world through economic subterfuge.

Broad Shoulders

That's a rather simplistic way to describe the EU and its predecessors. The EEC ws born out of military fear, not economics as its name suggests. The theory was that if you keep the Western nations of Europe economically bound to each other and "share the wealth" then there would be less likelihood of another WWII. It was also a means to rebuild Germany, which again was a means of stopping history repeating itself. In a time when factions in Europe were on a knife's edge and Communism was very close to taking over in countries like France and Italy it was a very clever method of keeping Communism out.

As to its relevance today I have no idea, as it doesn't represet any of the same purposes it held in 1957

Wol

Well, no, actually:

>>At best Greece is going to default. At worst the Euro will collapse. <<

The Euro was always a political thing, not economic. The political elite in the Eurozone will go down trying to make it out to be the best thing since sliced bread but only to save their egos. It was never going to work in anything but the medium term and what we are seeing is exactly what was inevitable when the whole wonky scheme was instigated. So the best thing, not the worst, is that the Euro WILL collapse - the longer it drags on the worse the collapse is going to be.

GarryP

A holiday island for the Germans, one for the French, one for the Brits, etc. Owned and run with the respective cultures, laws and languages. Would be the logical extension of Magaluf, but without the balance of trade hit.