Posted on 05/19/2010 10:16:57 AM PDT by mainsail that
(RTTNews) - The euro briefly rallied Wednesday morning on speculation that Greece was planning to withdraw from the European Union, but fizzled out after an official in Athens told CNBC the debt-riddled nation is not pondering an exit.
The Greek debt situation has ballooned into a full-blown existential crisis driven by concerns about the viability of the European monetary union.
Last night, the euro plunged to a new 4-year low versus the dollar after Germany unilateraly banned naked short selling of some securities -- a dramatic move designed to prevent speculators from sparking a further run on the single currency.
Ominously, German Chancellor Angela Merkel admitted yesterday that the euro is in danger.
"I'll boil it down to its core: The euro is the foundation for growth and prosperity, along with the common market -- also for Germany. The euro is in danger," said Merkel.
Earlier in May, the European Union and International Monetary Fund promised nearly $1 trillion to backstop Greek debt in the event default is imminent. It is believed that if Greece defaults, other vulnerable European states like Portugal and Spain will also fall prey to bond vigilantes.
(Excerpt) Read more at rttnews.com ...
Screw the bankers who bought Greek debt thinking that they would get bailed out.
So if California left the USA would the dollar go up?
That is not how it works. Few on welfare or pension fled East Germany. It was the doctors and engineers that fled after free college.
I would expect South Carolina to flee the US more likely than CA. Just kidding. MSNBC may report this comment tonight. Countdown "Obama as Lincoln #2 as SC talks of succession".
If Puerto Rico was a US state it would never leave....same as Greece.... too many goodies and freebies
Maybe I am not perceptive enough to understand your response, but it does not seem to be about what I was asking. I agree Cal. is not likely to leave the USA, nor is Greece likely to leave the EU. Both have irresponsible big gov. policies and hopes of big bailouts.
It is possible that California pays more federal taxes per expenditures than many other states do, liberal coast high income states claim this is true with the AMT especially. That may not be true now with the economy.
Watched it from 5AM EST. I don't see a fizzle. EURUSD is 1.2390 right now. It had been as low as 1.2150
Probably ;-)
You are correct, Cal. is not going to secede. My sarcastic point was that it would take a big bailout to save the Cal. budget (and keep saving it every time it gets out of control).
It is possible that California pays more federal taxes per expenditures than many other states do
That may be true, but AFAIK the govt. of Cal. doesn't pay any federal tax, and that govt. is the potential bailout recipient in question. And if Obama starts worrying about Cal.'s electoral votes and votes for Dem congresscrooks, he will try to find a way to make sure he gets them.
Individuals and businesses inside Cal. might pay more than their share of federal taxes, but I think it would be tricky to get a true dollar value on "California businesses," since many companies have sites not only in multiple states, but also in multiple countries. IOW, such numbers are subject to less than honest analysis (not talking anout you!!!).
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