Lil Economic Problem

sixthcutuan

sixthcutuan

Peculiar Member
Apr 18, 2011
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Scotland
BBC News - Central banks act as economy hits 'dangerous new phase'

Just in case you guys over in the US arn't aware of the current situation.

Economics is an area of interest for me and I was discussing the current events that we're going on in Europe, specifically Greece. We both came to the same conclusion, feel free to disagree and share your thoughts.

- Greece is very likely to reset all it's debts.
- The Republic of Ireland and Portugal are having huge economic problems right now, with Greece gone they are likely to fall into recession.
- At the same time Italy and Spain (All of these make up the PIGS - Portugal, Italy, Greece and Spain. Basically all the EU countries in the economic toilet) are having large economic problems and to top it off France owns a considerable amount of Greek debt.
- Once the PIGS and France have fallen into debt the EU currency will have already - or be in the middle of a crash.
- Next is the rest of the Eurozone and then the United Kingdom. Either complete collapses or long-term stagnation likely.
- And of course we can't forget the US. Because of the large amounts of imports and especially exports. The US will also have huge, huge problems. This will knock on to the rest of the world.

There have been significant issues over the last few days with an emergency telephone call between the Greek president, French President and German Chancellor this morning as well as growing civil unrest in Greece. Add to that over 16% unemployed and the requirements of cutting public spending for the bailouts that the EU has been handing out to Greece. Greece is fucked.

Still, maybe it will turn out all right. :thumbsup:
 


Just do what we did in the USA. Sell the debt to China.
If the media gets uppity with difficult questions, invade another country to spread freedom - excellent distraction!

Then the public is free to worry about some actress' boobs that were hacked from her cell phone.
 
Is it just me or won't this be good for the US? As other currencies devalue ours will level out with theirs.
 
Jake1125 said:
Just do what we did in the USA. Sell the debt to China.
If the media gets uppity with difficult questions, invade another country to spread freedom - excellent distraction!

Then the public is free to worry about some actress' boobs that were hacked from her cell phone.
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China wouldn't be able to afford all the debt from the EU + the US. Even if it could, who would invest in something that will crash?

Argentina had a recession a while ago and to distract people they started a military campaign, the easiest they could find. They chose the Falklands, part of the UK while at the same time the UK was very militarily weak. Of course the UK beat the argentinians and their country collapsed. Look at Iraq, a weak country compared to the US yet a huge amount of US debt is because of it. Lets not forget the 100's of thousands of lives lost.

Oh and yes, I checked out the boobs earlier.

Rage9 said:
Is it just me or won't this be good for the US? As other currencies devalue ours will level out with theirs.
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Bad for the US. Loss of EU markets will be catastrophic. Ignoring that, the US relies heavily on exports and a highly valued currency would mean their products are much more expensive for other currencies. America would end up as a clusterfuck too.


Amazing how much trouble one country can cause.
 
Rage9 said:
Is it just me or won't this be good for the US? As other currencies devalue ours will level out with theirs.
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To a point yes but 1. it's a short term fix at best 2. it's a downward spiral cat and mouse with compeitive devaluation, which is actually happening right now with Swiss and others, and 3.if/when the Euro blows it will pull dollar markets down with it. Hot money tied up in NY will flee back overseas to try to cover deposits and patch the bleeding of BNP Paribas, Deutchbank, Comerz, SocGen, etc.
 
Greece has been living beyond its means in recent years, and its rising level of debt has placed a huge strain on the country's economy.

The Greek government borrowed heavily and went on something of a spending spree after it adopted the euro.

Public spending soared and public sector wages practically doubled in the past decade.

However, as the money flowed out of the government's coffers, tax income was hit because of widespread tax evasion.
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LOL THANKS BBC I CAN ALWAYS RELY ON YOU FOR THE TRUTH

Speculative zombie bankers decided to attack Greece with credit default swaps like two years ago as a weak point in the euro to make the dollar look good. Credit default swaps are financial weapons of economic warfare.

Hedge fund 'ideas' party sponsored by Monness, Crespi, Hardt & Co sparks big controversy over euro
 
MSTeacher said:

LOL THANKS BBC I CAN ALWAYS RELY ON YOU FOR THE TRUTH

Speculative zombie bankers decided to attack Greece with credit default swaps like two years ago as a weak point in the euro to make the dollar look good. Credit default swaps are financial weapons of economic warfare.

Hedge fund 'ideas' party sponsored by Monness, Crespi, Hardt & Co sparks big controversy over euro
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Economic warfare can be very powerful. In the UK there was an Economic Warfare division in WW2 to mess up the enemies.
 
Rage9 said:
Is it just me or won't this be good for the US? As other currencies devalue ours will level out with theirs.
Click to expand...

As I understand it, if the USD strengthens then it will hurt our exports and will help other countries imports here. On a plus side, this could result in cheaper goods. On the downside, it could hurt US business.

On a similar note, what do you guys think about buying EURO bank stocks before they are recapitalized (which will happen after Greece defaults). Could be a good play, although a risky one.
 
Nothing is going to fix this issue long-term. Even in the midst of collapse, the population of the "PIGS" still expects their entitlement programs and they aren't going to produce themselves out of a deficit regardless of the hand-outs we give them.

The UK is one of the only countries over there that I'm aware of that has made the corrective actions in their legislation to prevent a log-term meltdown. How is Germany dealing with all of this? Obviously they are doing great economically relative to the others, but are they on a good track still?

The best solution for these problems is to let Greece default, deal with a collapsed economy and screwing the global economy for 3-5 years, learn the lessons, and move on down the road.
 
there isn't enuf bailout to go around, someone has to take a fall, and set an example for the rest of the world on what not to do, and here comes greece.
 
Falian said:
As I understand it, if the USD strengthens then it will hurt our exports and will help other countries imports here. On a plus side, this could result in cheaper goods. On the downside, it could hurt US business.

On a similar note, what do you guys think about buying EURO bank stocks before they are recapitalized (which will happen after Greece defaults). Could be a good play, although a risky one.
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You understand it well, of course that plus side is very short term and the long term situation is bad.

blureach said:
Nothing is going to fix this issue long-term. Even in the midst of collapse, the population of the "PIGS" still expects their entitlement programs and they aren't going to produce themselves out of a deficit regardless of the hand-outs we give them.

The UK is one of the only countries over there that I'm aware of that has made the corrective actions in their legislation to prevent a log-term meltdown. How is Germany dealing with all of this? Obviously they are doing great economically relative to the others, but are they on a good track still?

The best solution for these problems is to let Greece default, deal with a collapsed economy and screwing the global economy for 3-5 years, learn the lessons, and move on down the road.
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It's one of the only routes. Unfortunately speculators like to panic and this is often what crashes the markets. Britain is cutting the public deficit which is good but in my opinion are doing it too fast. Will hurt the economy hard in the future.

Jake1125 said:
Is this the Gay Conspiracy Theory Forum?
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I believe so. However this, unlike most "facts" on this forum, is actually true. It's in higher (Scottish system) history books. It wasn't some evil elite groups, they just did things like remove supply of certain goods or flood the German markets with fake goods etc.
 
I really don't mean to bring religion into this but pretty much everyone has known since biblical days that a large world wide collapse is going to happen sooner or later and mankinds' solution to it.

The bible predicts
1. There will be a one world government
2. There will be a one world currency

You don't have to be religious, a prophet, or live in an economic downturn to see and realize that without a doubt both of those things are definitely going to happen someday. It's the problem and the solution for everything thats wrong with this world. It's just a matter of when and how desperate we'll be when it happens.
 
Deliguy said:
I really don't mean to bring religion into this but pretty much everyone has known since biblical days that a large world wide collapse is going to happen sooner or later and mankinds' solution to it.

The bible predicts
1. There will be a one world government
2. There will be a one world currency

You don't have to be religious, a prophet, or live in an economic downturn to see and realize that without a doubt both of those things are definitely going to happen someday. It's the problem and the solution for everything thats wrong with this world. It's just a matter of when and how desperate we'll be when it happens.
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There will also be a rising up of Muslim nations against Isreal led by Russia and Iran around the same time as the two things you mentioned above, and it will end with a nuclear device detinated over Northern Isreal.
 
Deliguy said:
You don't have to be religious, a prophet, or live in an economic downturn to see and realize that without a doubt both of those things are definitely going to happen someday.
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Oh boy... This is funny. Too much drinking own bathwater IMO.

Deliguy said:
without a doubt both of those things are definitely going to happen someday.
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Gay prophets forum? Gay conspiracy theory forum? Gay webmasters forum? We're all of that?

Without a doubt...... :sleep:
 
writtenstyle said:
There will also be a rising up of Muslim nations against Isreal led by Russia and Iran around the same time as the two things you mentioned above, and it will end with a nuclear device detinated over Northern Isreal.
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Wow you crystal ball must be more perfect than mine! (My spell-checker is better though). So this will happen at about the same time. And you know this because of something in a book? Or a crystal ball, or what? :thumbsup:

I'm so impressed, I might even start believing the shit on this forum.
 
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