Posted on 09/25/2011 1:53:55 PM PDT by Comparative Advantage
Europe, the G20, and the global authorities have one last chance to contain the EMU debt crisis with a nuclear solution or abdicate responsibility and watch as the world slides into depression, endangering the benign but fragile order that has taken shape over the last three decades.
The threat of cascading default, bank runs, and catastrophic risk must be taken off the table," said US Treasury Secretary Tim Geithner over the weekend.
"Sovereign and banking stresses in Europe are the most serious risk now confronting the world economy. Decisions cannot wait until the crisis gets more severe."
Euroland's dysfunctional arrangements are no longer a local affair. As the European Central Bank's Jean-Claude Trichet said in Washington, EMU is at the epicentre of a global sovereign debt crisis that risks engulfing all, and is more intractable than 2008 because governments themselves are now crippled.
China, India, Brazil and the world's rising powers will not escape lightly this time if leaders let events spiral out of control. European banks have lent $3.4 trillion to emerging markets (BIS data), or three quarters of external loans to these countries.
The International Monetary Fund warned last week that emerging markets face the risk of "sharp reversals" or even a "sudden stop" if there is further spill-over from Europe. This comes at a time when Asia and parts of Latin America are already in the topping phase of a credit boom, one of epic proportions in China where loans have doubled to almost 200pc of GDP over the last five years.
(Excerpt) Read more at telegraph.co.uk ...
So true. We are still the hub and that ain’t going to change unless we get another term of Obama or a comparable muslo- marxist - antithetical idiot.
Why does this guy have any credibility? Why do people keep listening to him?
And what makes him think he has all the answers.
Answer. Because the people who think he has credbility are the people who listen to him which is why he thinks he has all the answers.
A big incestuous circle jerk.
Its the sequel to Deliverence
Why does this guy have any credibility? Why do people keep listening to him?
And what makes him think he has all the answers.
Answer. Because the people who think he has credbility are the people who listen to him which is why he thinks he has all the answers.
A big incestuous circle jerk.
Its the sequel to Deliverence
Fantastic.
Little Timmy has put on his SUPERMAN suit and will save the world!
I feel so secure.
Had to go through the comments to figure this all out, and a better article is here;
http://www.telegraph.co.uk/finance/comment/8787064/Eurozone-leaders-comedy-of-errors-brings-monetary-union-to-the-brink.html
here’s one comment that tries to break it down;
elvishasleftthebuilding
Today 12:51 AM
Recommended by
38 people
There’s been so much posturing via the media this week, it’s hard for ordinary folk like me to figure out what’s really going on (or about to happen...)
Is far as I can tell:
1) Greece, Portugal and Ireland are already bankrupt, soon to be official.
2) Southern Europe will soon be bankrupt.
3) Northern Europe, UK, and US will then be a lot poorer.
4) The US is asking Germany to make sure it gets its money back, just like China was asking the same of the US last year.
5) Everyone has forgotten the the US is really bankrupt, as this won’t be official for some time yet.
6) When the US goes bankrupt, China will be a lot poorer.
Japan must figure in here somewhere too.
American taxpayer = Ned Beatty.
Another comment I liked;
Now how soon will it take for a political party to be formed in Germany which appeals to the their taxpayers ie we will make our own way in life and any growth will be shared with our own people. The old Deutschmark kept appreciating but in essence and relative terms it basically made the Germans wealthier, now that sounds much more tempting than a fiscal union in which you are forever subsidising not even your own brothers even cousins but in laws twice removed!
I know you know why and how the “global economy” came about.
But is the the mother of all examples of the law of unintended consequences.
If a nuclear war would destroy all economies and thus rule nuclear wars so destructive to all that no nation would consider it, it should have been obvious and certainly is today that any risk to the global economy would be unacceptable to any member of the civilized world.
The answer is that when this mess is all over, the USA should shun any effort to rebuild a global banking system. We should be totally independent. That independence would serve as a firewall against a lesser economy poisoning ours.
last chance for the elites to delay dealing with the reality of the consequences their narcissism...
That's what happens when you a nation without a currency, and a currency without a nation.
with Algore as the banjo player.
with Algore as the banjo player.
It’s all about saving Goldman Sachs and JPM-Chase from their bad loans. Geithner knows who he will be working for when BHO leaves office.
Another comment at this article;
petrifiedobserver
1 minute ago
‘Such a strategy must
slowly eat away at Italian and Spanish society’
Well, I guess it all seemed OK when the EU was investing billions into building nice shiny new high speed railways and motorways for them. Shame it didn’t work out.
In other words, Europe and the global economy are doomed.
I find it both sad and funny that the only thing that is stopping the world from progressing is Obamacare and the EPA.
Catastrophes happen. Timmy was one of them.
If Tim Geitner is your last hope then you’re screwed anyway, just relax and let it all collapse.
I cannot imagine anyone with a couple of brain cells paying one bit of attention to anything Geithner has to say about money, banking, or economy ANYTHING.
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