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To: Cronos; taxtruth; SAJ; bruinbirdman; Scanian
More on Estonia and the Euro: A suitably up-beat article from the MSM, and some real analysis from a blog.

In all likelihood Estonia will suffer greatly because of decision to join the euro.

Estonia is still an "emerging" economy. The inflationary pressure will continue to be strong. In the meantime the ClubMed countries, Belgium, Ireland and others will be in a deflationary situation, and though Germany will pressure the ECB next year for increased interest rates, they will be far too low to suit Estonia. In short, low interest rates, and high inflation means negative real interest rates. And what does that usually bring: bubbles.

Apparently no-one in the eurozone remembers what happened to Ireland and Spain. Strange, considering the fact that they have been in the news lately.

11 posted on 12/31/2010 3:08:57 AM PST by ScaniaBoy (Part of the Right Wing Research & Attack Machine)
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To: ScaniaBoy
Apparently no-one in the eurozone remembers what happened to Ireland and Spain.

Politicians who spend way more money than they have? Seems to be the norm in Europe.....

12 posted on 12/31/2010 4:01:45 AM PST by Thermalseeker (The theft being perpetrated by Congress and the Fed makes Bernie Maddoff look like a pickpocket.)
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