Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

Skip to comments.

Will the Euro Zone Collapse on Thursday?
www.pmflegal.com/blog WSJ Live (Wall Street Journal) ^ | 6/6/12 | Vincent Cignarella

Posted on 06/07/2012 4:32:12 AM PDT by Haiku Guy

Thursday may be the final test for the euro zone, Vincent Cignarella argues on Markets Hub. The simmering euro-zone crisis may reach full boil when Spain goes to the market to borrow bonds just one day after the ECB met.


TOPICS:
KEYWORDS: eurozone
Spanish Bond Auction today - Will the Greater Fool take the day off?

I was in Somalia back in the mid-80s. I was talking to an economist who had a meeting with the Somali Minister of Long Term Economic Planning while the country was going through one of it's many monetary emergencies.

The crux of the problem was the printer in Italy who printed Somali Shillings demanded to be paid in hard currency. After all, he could print all the Somali Shillings he wanted, so what is the point of being paid in those? The government did not have the money to pay the printer, so there was simply no cash in the country to deal with the 100%-per-week inflation.

Finally the government got money from somebody to pay the printer, and the cash was shipped from Italy. It was scheduled to arrive in a couple of days. It was at his regular Sunday meeting that the Somali Minister of Long-Term Economic Planning spoke the famous line, "If we can just make it through Tuesday, we'll be fine."

We all had a good laugh about that at the time. Silly wogs, and all that. Little did we know that the crisis for us would come on a Thursday.

1 posted on 06/07/2012 4:32:16 AM PDT by Haiku Guy
[ Post Reply | Private Reply | View Replies]

To: Haiku Guy

I heard a similar story. In the version I heard the African country told the printing company to, “Just run off a few million for yourselves.”


2 posted on 06/07/2012 4:57:35 AM PDT by preacher (Communism has only killed 100 million people: Let's give it another chance!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Haiku Guy

3 posted on 06/07/2012 5:14:23 AM PDT by Travis McGee (www.EnemiesForeignAndDomestic.com)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Haiku Guy

If they can only make it to August when they’re all on their 5 week vacations, nobody will notice the collapse. ;)


4 posted on 06/07/2012 5:19:54 AM PDT by Tijeras_Slim
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson