A clever logo doesn't make for a sound currency.
Posted on 02/12/2010 8:48:37 PM PST by Steelfish
Collapse of The Euro Is 'Inevitable': Bailing Out The Greek Economy Futile, Says FRENCH Banking Chief By SAM FLEMING and TIM SHIPMAN
12th February 2010
The European single currency is facing an 'inevitable break-up' a leading French bank claimed yesterday. Strategists at Paris-based Société Générale said that any bailout of the stricken Greek economy would only provide 'sticking plasters' to cover the deep- seated flaws in the eurozone bloc. The stark warning came as the euro slipped further on the currency markets and dire growth figures raised the prospect of a 'double-dip' recession in the embattled zone.
The bailout of Greece will only act as a 'sticking plaster' for the Euro crisis, the bank warned yesterday Claims that the euro could be headed for total collapse are particularly striking when they come from one of the oldest and largest banks in France - a core founder-member.
In a note to investors, SocGen strategist Albert Edwards said: 'My own view is that there is little "help" that can be offered by the other eurozone nations other than temporary, confidence-giving "sticking plasters" before the ultimate denouement: the break-up of the eurozone.'
'The euro's a success': Peter Mandelson at Downing Street on Thursday He added: 'Any "help" given to Greece merely delays the inevitable break-up of the eurozone.' The alarming claim came a day after European Union leaders promised 'determined and co-ordinated' action to shore up Greece's tattered public finances, but disappointed traders by failing to provide specifics. Further details are expected early next week, but markets were in high anxiety yesterday amid fears political divisions among rich eurozone members could derail any rescue.
The euro slid almost 1 per cent to $1.357 yesterday, meaning it has lost 10 per cent of its value since November. The pound rose to 1.14 euros.
(Excerpt) Read more at dailymail.co.uk ...
Hope it sinks a lot more before June.
A Frenchman predicting failure. Who knew?
Is the (resulting?) increased demand for dollars necessarily a good thing for Americans though?
A clever logo doesn't make for a sound currency.
Gee! I thought that the euro was going to be the currency of the future. A replacement for the overly-abused dollar.
BruinBirdMan,
Since so many of your posts on such topics as this have been interesting reads for me, I hereby return the favor — in case you missed this one.
bajabaja
Bernard Shaw once said that the Germans are fine people, but they don’t understand that one can have too much of a good thing, and that’s exactly what the Greeks did.
The “post-American world” sat on a wall....
The “post-American world” had a great fall...
Do you think McDonald’s will be serving souffles and creme brulees?
Oddly, I've nothing at all against Europe; lovely place. I do, however, have some considerable familiarity with assorted European goobermints, almost all of whom are even more worthless, as regards personnel and policy, than the American goobermint.
Anyone, any moron, can ''govern'' when times are good (given they've marginal intelligence, of course). Problem is, now times are not so good and in many cases getting worse, yet we've still the same morons ''governing''. And, sad to say, yapping about the same type of ''solutions'' to problems that not only never HAVE worked before, but literally CANNOT work in the real world.k
Train wreck coming. Pick your favourite track(s).
“Do you think McDonald’s will be serving souffles and creme brulees?”
One can only hope!
Funny, the double bar makes the symbol reminiscent of the dollar sign, which was originally an S superimposed on a U or vice versa. Gives it a little cachet it might otherwise lack.
Most of the people of Southern Europe hated the Euro anyway. The all saw prices rise when they converted to the Euro and they were not that rich to start with.
“Train wreck coming. Pick your favourite track(s).”
You do have a way with words.
Here’s a humorous story about the Euro. When I worked in Silly Valley, I had a co-worker from Scotland. He was very well informed about all things economic and political on “the continent” and he predicted that the Euro/EU would not last. More than that, he predicted that it wouldn’t last 20 years.
I was rather taken aback by this at the time (which was around 1998 or so) because of all the huff-puffery being tossed about at the coming grand unification. His premise was based on this:
1. The German people were never given a vote on the issue, yet other countries’ peoples were. This was going to fester, simmer and boil for a long time... until...
2. One of the “southern spendthrifts” (as he called them - pick on - Spain, Italy, Greece) went bust “as they inevitably will, because it is in their national character to spend too much, debase their currency, collapse their government, toss them out of office and start all over again...” would bring down the Euro around their budget and political failures, because
3. The masters of the EU/Euro left NO ESCAPE VALVE with which to kick out a member nation.
He was quite savage on this last point - that the central failing of Maastricht was that there was no way to really penalize a member state who tried to rig the game for a bailout by other member states; ie, there was no way forward in the treaty to say “You failed as a member state. Get lost.”
He said that this succession would bring the non-vote cram-down placed on the Germans to a boil, and that would precipitate the downfall.
Turns out that it is happening pretty much as he predicted - just a bit faster than he predicted.
Britain did not convert to the euro.
Certainly not good for exports. There was already a forced/intentional currency imbalance with Japan and China. They created it to prop up their exports.
A strong dollar will also drive up the cost of petroleum.
So, no, a strong dollar right now is not all that good, since the necessities are not going to be going up in supply.
Financial/Currency Armageddon is coming and can’t be avoided at this point, well, without drastic, drastic measures that no politicians would propose and that would probably be impossible to enact. All of this Keynesian spending is just going to make it worse.
The best we can hope for is a couple of decades of economic suffering and working very hard just to get the necessities.
But, more than likely given the history central banking and its international involvement, this will result in another major war.
George Bernard Shaw, the same guy that said it would be necessary to kill those who opposed Socialism?
One of the most over-rated jackasses of the 20th century.
I agree. And your prediction is not anti-Europe, it is anti-central management.
Whether it is European nations coming together and putting the power over the economy in the hands of central managers or giving monetary control to our central bank called the Federal Bank, one outcome is certain: the currency will be destroyed by the greed of politicians and those controlling the currency. Some will profit greatly by the great suffering they cause the multitudes.
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