A funny look at Euro Area debt and who will pay

achilles28 · Jan 30, 2012

The only options are: Print or Crash.

They will print. Next?

Tsing Tao · Jan 30, 2012

Quote from achilles28:

The only options are: Print or Crash.

They will print. Next?

It's not that simple. Germany may not want print, while France does.

achilles28 · Jan 30, 2012

Quote from Tsing Tao:

It's not that simple. Germany may not want print, while France does.

Germany is using the crisis to gain fiscal leverage over member states.

IOW, Germany is holding back to gain concessions from debtor nations, in terms of surrendering fiscal and budgetary authority to Germany/France.

When the Germans get it, they will print. I'm 98% sure that is the real state of affairs, over there.

morganist · Jan 30, 2012

Quote from nutmeg:

The correct term is "jubilee".

Or as we say in the states. "Ob-La-Di, Ob-La-Da"

No it is different. Jubilee is a total cancelation this is cross cancelation, they only cancel the debt because they owe each other the same sum.

achilles28 · Jan 30, 2012

Quote from morganist:

No it is different. Jubilee is a total cancelation this is cross cancelation, they only cancel the debt because they owe each other the same sum.

I think you're right. It's not that Country A owes Country B. It's Country A owes Bank B. So netting out debts between countries, still leaves banks with a loss.

morganist · Jan 30, 2012

Quote from achilles28:

I think you're right. It's not that Country A owes Country B. It's Country A owes Bank B. So netting out debts between countries, still leaves banks with a loss.

Yeah I am sure I am right. It surprises me that they would even consider this suggestion.

Scataphagos · Jan 30, 2012

Quote from achilles28:

"... It's Country A owes Bank B. So netting out debts between countries, still leaves banks with a loss.

Ooooh, can't have that. Taxpayers must pony up!

zdreg · Jan 30, 2012

Quote from achilles28:

The only options are: Print or Crash.

They will print. Next?

print or crash is the solution proposed by governments that are losers and thieves..

achilles28 · Jan 30, 2012

Quote from morganist:

Yeah I am sure I am right. It surprises me that they would even consider this suggestion.

If it's more a revelation of their intellectual sophistication, than it's pathetic. And scary.

achilles28 · Jan 30, 2012

Quote from Scataphagos:

Ooooh, can't have that. Taxpayers must pony up!

haha. Don't get me wrong, I'm analyzing the situation from their perspective. I don't support bailouts.