Monday view: Airbus could trigger 'nuclear option' of currency controls

Telegraph.co.uk ^ | 1:59am GMT 27/11/2006 | Ambrose Evans- Pritchard

[IslandJeff]

The lack of hedge options is shocking.

Unless, of course, Airbus is "COC" (crap-outta-cash).

Now who gets to suffer from this mismanagement?

[investigateworld]

Good eye.

The folks using those slides with the nose wheel up and locked are in for a "E" Ticket ride, if they are on pavement.

[ccmay]

future Boeing aircraft and GE aircraft engine sales could skyrocket.

WILL skyrocket. Trade deficits are self-correcting.

-ccm

[GodGunsGuts]

The EU **COLLECTIVE** at work. Something to ponder if you are, or are thinking about, investing in EU markets.

[Brilliant]

Can we say "suicide?" That's what it would be if the EU instituted currency and capital controls intended to prop up Airbus.

This may be the final straw that demonstrates to the Europeans once and for all how completely flawed the socialist model is. Of course, it won't deter Pelosi and Reid.

[Donna Lee Nardo]

No, nothing will probably deter those two. But we can hope that the U.S. business lobby keeps their socialist endeavors reigned in at least.

GodGunsGuts: Thanks so much for the ping.

[the invisib1e hand]

This makes too much sense.

[the invisib1e hand]

I should add that a few years ago I wrote to the fellow at Columbia who was said to be the Father of Euro (at that time, at least).

I outlined for him my concerns about the Euro being used, essentially, as an instrument of economic warfare. He dismissed the idea with a confident flourish.

I hadn't envisioned this but can see it's a likely part of the picture.

***

Yet the Sterling has been very strong of late against the dollar. Not quite what one would expect if the Brits were stocking up on $.

[Toddsterpatriot]

Yet monetary union is subtly unravelling. French growth fell to zero in the third quarter on sliding exports. Italy is trapped in a downward spiral, doomed by a 20pc currency over-valuation. Fitch and S&P have downgraded its debt to Botswana levels.

Quick, diversify into the Euro, before it goes away. LOL!

[GOPJ]

Please add me to your ping list. Thanks.

[traviskicks]

yea can i get on your ping list too

[redgolum]

And no one at Airbus drew up a contingency plan? That's like whacking a third of the sticker price before the car leaves the factory.

Seen it in other EU industries as well. Makes for a mess when the bills come due.

[Paul Ross]

Washington should not be allowed export the consequences of its own reckless spending policies through a "beggar-thy-neighbour" devaluation.

But its apparently okay for France and its Europals to do just that with their AirBus subsidies and trade barriers. Ditto that for China.