Thread: The Euro is doing pretty bad....

And they want Iceland to replace the krona with the euro.

It'll be interesting to see how the deal with Ireland shakes out.

It's possible that after Ireland that Portugal and Spain could be next.

And honestly, Washington DC could be next down the road.

Washington DC cannot be next...we would print at any cost before we defaulted. High inflation is less deadly than TOTAL loss of global confidence in the monetary system.

IMHO PIIGS will shake OK in the short term with the ECB bailing out those who need it (or are forced to take it)...Germany and France (more of the former) will then have control/strong influence over these countries economic, fiscal, and monetary policies...which means they will have control over PIIGS natural resources and citizens social benefits. Those countries are going to lose their sovereignty at the cost of confidence in the Euro. They should have never joined the Eurozone that quickly...but Germany and France may have gained much more in the long term, but strengthening their position within the EU.

Originally Posted by lnvanry

Washington DC cannot be next...we would print at any cost before we defaulted. High inflation is less deadly than TOTAL loss of global confidence in the monetary system.

I hear your point Invanry, and others say this, but here is another argument.
She notes the US needing an austerity plan. If we look at the number, it does. Yes, DC can print, but there is a limit to that (I don't know what that limit is).

The GDP debt ratio and projections.
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Next Debt Crisis May Start in Washington: Bair

Published: Friday, 26 Nov 2010

The US needs to take urgent action to cut its debt in order to prevent the next financial crisis, which may start in Washington, Sheila Bair, chair of the Federal Deposits Insurance Corp. (FDIC) wrote in an editorial in the Washington Post.

FDIC Chairman Sheila Bair says the US needs austerity plan.

The federal debt has doubled over the past seven years, to almost $14 trillion, and the growth is a result of both the financial crisis and the government's "unwillingness over many years to make the hard choices necessary to rein in our long-term structural deficit," Bair wrote.

Retiring baby boomers will impact government spending heavily and this year, combined spending on Social Security, Medicare and Medicaid are expected to make up 45 percent of primary federal spending, compared with 27 percent in 1975, she explained.

"Defense spending is similarly unsustainable, and our tax code is riddled with special-interest provisions that have little to do with our broader economic prosperity," Bair wrote. "Overly generous tax subsidies for housing and health care have contributed to rising costs and misallocation of resources."

If no action is taken, US federal debt held by the public could rise from 62 percent of gross domestic product this year to 185 percent in 2035, she warned.

Link: http://www.cnbc.com/id/40378597

Here is a brief snippet on Europe, Europe's problems, and the nation-state in general.

That's just antigovt propaganda. It's already been proven that Obama's stimulus is turning this economy around. He is repairing 8 years of damage.

Originally Posted by GearsMcGilf

That's just antigovt propaganda. It's already been proven that Obama's stimulus is turning this economy around. He is repairing 8 years of damage.

Now would be a good time to invade Europe, while they're in such bad shape. We could make the USD the official currency of europe.

Originally Posted by GearsMcGilf

That's just antigovt propaganda. It's already been proven that Obama's stimulus is turning this economy around. He is repairing 8 years of damage.

I believe you're joking.

8 years of damage yes. But the damage started about 6 decades ago, and now the US is reaping what it has sown.

As for the stimulus, it seems to be a band-aid on a bullet wound at the moment.

The economic numbers are not really there to suggest things are heading for the better at this time.

Here's a report on the Irish situation and Peter Schiff's take.

Schiff says Ireland should default - then, Ireland won't have to pay the debts back - instead - the Irish people (working folks) will have to pay:

Originally Posted by Big Smoothy

Here's a report on the Irish situation and Peter Schiff's take.

Schiff says Ireland should default - then, Ireland won't have to pay the debts back - instead - the Irish people (working folks) will have to pay:

thats pretty shitty for the people of ireland, and i have some family there.