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Reuters: Situation in Europe is serious
- Thread starter bearice
- Start date
I hope so...Quote from jem:
Were those answers really worth writing?
Unless you're right, of course...1. When everyone is on your side of the trade... you are wrong.
You're not the only one. You don't have to agree with my views. My conclusion regarding the expected path of the drachma/EUR exchange rate seems obvious, because, as I have mentioned already: a) it's based on fundamental macroeconomic principles; b) similar events have occurred before.2. having traded for a living I am always leery of the obvious result.
If you want to talk about Greece and not about the Fed, why do you keep mentioning the Fed, its various (ex)Chairmen and Thomas Jefferson? My point to you is that the Greek situation is all about basic macroeconomics. Central Banks and central bankers, even if they're 6ft+ tall and are called Paul Volcker, are not magical entities that can twist the fabric of macroeconomic reality at will.3. I had no desire to turn this into a Fed bashing debate.... but...
I refer you to Greenspans record of controlling a bubble by lowering rates and allowing liar loans. i thought central banks were supposed modulate cycles not exacerbate them. I will defer to guys like Thomas Jefferson?
Thomas Jefferson wrote:
"The [privately-owned] Central Bank is an institution of the most deadly hostility existing against the principles and form of our Constitution...if the American people allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporationsthat will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."
No, I don't see any connection. In fact, you've convinced me that you're marvelously confused. What does inflation have to do with anything? When did "bets on inflation" ever come into this? As to Volcker, see above.4. If Volker was involved with a new Greek Central Bank would you really still make an bet on inflation.... I brought him up as an example of how perhaps a central bank should be run. Now do you see the connection .
I don't know anything about IMF loans to Bono, but I just don't understand what this has to do with Greece and sovereign debt. What is your point here?5. In the world of Sovereigns we have Bono getting debt forgiven a loans from the IMF. Debt forgiveness is a lot like bankruptcy --- don't you think?
Again, what does this have to do with anything? We're talking about Greece and you're comparing Volcker to Bernanke? Apart from the obvious issues with the way you're making the comparison, what does this have to do with Greece?6. Its odd you say that because the moral of Volkers story is that a little short term pain while he crushed inflation expectations... set the U.S. up for a 15 year expansion. Bernanke just spent how many trillion to avoid pain.
He changed agency debt in to treasury. he spent how many trillions on bad assets.
Was it the Martians? Britney Spears? In all honesty, I always thought it was Soros... But yet again, even if it were the Martians, what does this have to do with anything? I brought up Soros and the ERM to illustrate an obvious point; namely that raising rates doesn't necessarily imply a strengthening of the ccy, while causing pain to the domestic economy.The story about Soros has turned into marketing cliche my 10 year son knows it.
Why don't you tell us who was the money behind Soros. That would be a useful reply.
NAW ) 05/12 08:57AM AUSTRIAN MINT SAYS SOLD 243,500 OZ GOLD IN COINS AND BARS IN LAST 2 WEEKS, MORE THAN IN ENTIRE Q1
( NAW ) 05/12 08:58AM AUSTRIAN MINT SAYS GOLD ORDERS COMING ENTIRELY FROM EUROPE IN LAST FEW WEEKS, SIGNS OF "PANIC BUYS"
You pay an 8% premium on physical gold here! That's insane and I'm sure it's going to go much higher.
( NAW ) 05/12 08:58AM AUSTRIAN MINT SAYS GOLD ORDERS COMING ENTIRELY FROM EUROPE IN LAST FEW WEEKS, SIGNS OF "PANIC BUYS"
You pay an 8% premium on physical gold here! That's insane and I'm sure it's going to go much higher.
If the world leaders and bankers think they can save the world economy by printing money, they are wrong. They will fail ultimately. They are just creating bubble which will burst ultimately.Quote from S2007S:
If that's the case they will just push another trillion through the system, its no problem for them to keep adding trillions of dollars to prop up the entire global market. Free money for everyone.
Rumor: Germany will leave the Eurozone & reintroduce German Marks
A web page of precious metals prices provider Kitco.com has sparked rumors that Germany will leave the Eurozone and reintroduce German Marks, sending gold to a new record of $1,244 and silver to a multi-year high of $19.64.
It is this half-ready page shown below that has created excitement as it lists precious metals in Deutschmark units.
http://www.zerohedge.com/article/gu...lets-rumors-about-germany-abandoning-euro-fly
A web page of precious metals prices provider Kitco.com has sparked rumors that Germany will leave the Eurozone and reintroduce German Marks, sending gold to a new record of $1,244 and silver to a multi-year high of $19.64.
It is this half-ready page shown below that has created excitement as it lists precious metals in Deutschmark units.
http://www.zerohedge.com/article/gu...lets-rumors-about-germany-abandoning-euro-fly
Quote from bearice:
Rumor: Germany will leave the Eurozone & reintroduce German Marks
A web page of precious metals prices provider Kitco.com has sparked rumors that Germany will leave the Eurozone and reintroduce German Marks, sending gold to a new record of $1,244 and silver to a multi-year high of $19.64.
It is this half-ready page shown below that has created excitement as it lists precious metals in Deutschmark units.
http://www.zerohedge.com/article/gu...lets-rumors-about-germany-abandoning-euro-fly
Posted yesterday in the Wall St. News forum.
businessstaxes
Guest
How would lend more money to welfare state solve the problem???
increase debt and more debt?
I don't get this bailing out of welfare countries that can or refuse to cut deficits.
Countries are not companies,,it can't go bankrupt and wipe out debt.
lenders will be more reluctant to lend or want more interest if the euro loses value from debasing if the debt repaid in euro.
increase debt and more debt?
I don't get this bailing out of welfare countries that can or refuse to cut deficits.
Countries are not companies,,it can't go bankrupt and wipe out debt.
lenders will be more reluctant to lend or want more interest if the euro loses value from debasing if the debt repaid in euro.
Quote from bearice:
BERLIN, May 8 (Reuters) - Europe faces a serious situation with Greece not the only country subject to financial market pressures, German Chancellor Angela Merkel said on Saturday.
"It is a serious situation," she told reporters in Berlin after meeting Canadian Prime Minister Stephen Harper.
"If you looked at the spreads from Friday or Thursday, you see we are facing a development that is not good in several countries, not just one country," she added.
Merkel said euro zone leaders made the right decisions on Friday, when they agreed to have special measures ready before financial markets open on Monday to prevent financial turmoil in Greece spreading to other countries such as Spain and Portugal. [ID:nSGE64608F]
The leaders agreed to take measures to accelerate budget consolidation, to make progress on financial regulation and to strengthen the governance of the euro area.
"We will undertake a collective effort. That means a joint instrument to react to speculation or threats to the stability of the euro area," Merkel said, without giving any details.
Finance ministers from the 27 European Union member states will meet in Brussels on Sunday to try to agree a mechanism for helping EU countries stave off future debt crises, EU sources said on Friday. [ID:nLDE6462E2]
Merkel added discussions among policymakers from the Group of 20 powers on exit strategies and future economic and financial policy should include foreign exchange issues
http://www.reuters.com/article/idUSLDE6470AK20100508
Quote from businessstaxes:
How would lend more money to welfare state solve the problem???
increase debt and more debt?
I don't get this bailing out of welfare countries that can or refuse to cut deficits.
Countries are not companies,,it can't go bankrupt and wipe out debt.
lenders will be more reluctant to lend or want more interest if the euro loses value from debasing if the debt repaid in euro.
Countries can, and frequently do, go bankrupt. But I agree with you, throwing good money after bad money (which is essentially what the Bailout does) is a level of stupid that only politicians can succumb to.
Everybody is saying that printing money and giving it to bankrupt companies, bankrupt banks, bankrupt countries will not help. They will fail ultimately. But the governments keep printing money and giving it to bankrupt companies, bankrupt banks, bankrupt countries. Does this mean the people have no control over the governments?. The governments can do whatever they want?. The governments are behaving like Gods.