Friday, 17 June 2011

Another €100bn, another 12 weeks for the Euro

The Euro has just bought another twelve weeks life in its present form at the cost of a further €100bn bail-out to Greece. The Germans and French will take on much of this CCC-rated junk debt, knowing not only that there isn't a hope in Hell of getting their full whack back, but that when the fall comes (as it will) their own banks will be first against the wall. The slow death of the Euro is one of the most protracted suicides in history. 

Our masters in Brussels would rather see the entire European economy stagnate and economic activity shrink to a dribble before they'll surrender, but the truth apparent to all is that no nation will be able to grow and flourish again whilst the cancer of debt repayment gnaws at its back. Default is the only realistic option for Greece, Ireland, Portugal, perhaps even Spain, perhaps even us. The banks will howl and whinge as they collapse, but we can come through it. 

C'mon. It's time to take the hit and get on with it. 


Gallovidian said...

Time we faced reality on this; out of the sodding EU, balance the budget, asylum seekers to a tented encampment on Carcass Island off West Falkland, workfare not welfare, less laws but rigorously enforced and to hell with both wings of internationalism.

cuffleyburgers said...

I can see certain parallels with the situation after the first world war when germany was loaded with crippling debts largely at the behest of France, and we all know where that led to ... the conclusion is the same, Great Britain has no interest in entangling itself with these continental madmen - we HAVE to leave the EU

opinion prole said...

The UK has defaulted already, by allowing the pound to slide precipitately. A Japanese who was so unwise as to buy British government bonds 3 years ago would have lost 40% in Yen terms by now. Not so different from what the Greeks will do except they can't devalue.

Anonymous said...

When I hear of the £9B to the IMF in the form of SDR, I am forced to ask, at what point does ineptitude become a criminal endeavour?

Anonymous said...

@ opinion prole

Now that's interesting. At the time the debt has to be repaid. If the £ has sunk by say 40%, does the foreign country have to take it on the chin because they bought sterling debt and sterling has devalued; or do they buy debt within their own currency which would mean that the UK has to make good the 40% downward fluctuation to make up the original sum?

I genuinely don't know the answer.

Coney Island

Anonymous said...

Single acts of Tyranny: "I am forced to ask, at what point does ineptitude become a criminal endeavour?"

The job of the commons is to hold the executive to account, when was the last time a finance bill was rejected in the Commons?

How do we go about bringing a charge of misprison in public office against these fuc*er*?

Anonymous said...

Agreed Raedwald.

The Euro is dead, trying to give the kiss of life to a monster, which has long since expired would be comical, were it not for the dire circumstances in which we find ourselves but the sooner the Death certificate is granted the better for us all.
Floggin' a dead horse does no one any good, echoes of AGW perhaps?

opinion prole said...

Anonymous of Coney Island:

If you buy foreign currency bonds, on maturity they are worth in your own currency whatever the exchange rate delivers at the time.

Bill Sticker said...

Anyone caught up with the news about certain UK Banks drastically reducing their EuroZone holdings? I think Barclays is one, Standard Chartered another. News in the Telegraph's financial pages, here.