Only way to fix EURO is take Greece out!

[jueco2005]

Quote from SomeYoungGuy:

Can someone explain to me why the euro is getting hammered because of the Greece situation? It seems to me that Greek sovereign debt should bear the brunt of it, not the currency. If Greece defaults, why should that affect the euro?

A nation's currency is also backed by its ability to pay its debt. If a particular nation becomes unable or difficult to pay its obligations......then its currency will suffer devaluation. You must understand this.

This is what is happening in Greece and why the Euro is being affected by it. If all EU members were using different currencies this would have no effect on them, but since they all share the same currency hammered by the greek crisis.....there is no scape.

Cant explain it better than that

 

[southbeach4me]

Quote from morganist:

i think the main reason there is an continual inflationary gap is because. countries are not as productive as they claim. they borrow money against assets they don't really have then when it comes to repayment they cannot meet the required amounts and then become dependent on debt or inflating to support their cost of living.

if the inflation was used to pay off debt it could help. the sad fact is they use the inflated money to maintain the quality of life. the government will use it to maintain power.

inflation is useful to pay off debt if the inflated money is sent in the right direction.

you are correct inflation to pay pension obligations and wealfare is not good, this wil bring america down.

i have to say the states could not of had a worse government at a worse time.

You hit the head right on the nail..............

 

[Wallace]

Quote from jueco2005:
A nation's currency is also backed by its ability to pay its debt. If a particular nation becomes unable or difficult to pay its obligations......then its currency will suffer devaluation. You must understand this.
. . . . .
Cant explain it better than that

*****



one other smaller matter is the EU interest rate is still 1% and if lowered would weaken
the € a bit more

was thinking of the Province of Alberta, Canada issuing its own script during the GD
and discovered such issues were common: http://www.depressionscrip.com/
maybe that's an option for Greece and the other PIIGS