IMF Warns of Additional Tension and Acute Stress in EZ......

[MMC]

LUXEMBOURG - The head of the International Monetary Fund is acknowledging the acute stress under which the euro currency is suffering and promising to send a mission to Greece by Monday.

She called for more relaxed monetary policy by the European Central Bank, and for Europe to issue bonds backed by all countries.

In addition, Jean-Claude Juncker, the head of the eurogroup, said that Spain would make a formal request for financial assistance by next Monday.....snip~

http://news.yahoo.com/imf-head-christine-lagarde-warns-additional-tension-acute-214016214.html
Associated Press – 9 hrs ago<<<<<

Here they say the Euro is ready to crack under National Debts and High borrowing Costs. Yet they continue to borrow more money. Stimulus Spending does not work. Nor will it create jobs.

Spain makes their formal request by Next Monday.

[MMC]

Heya RW did you see this? Do you think they are seeing the No growth factor?

[Goldie Locks]

They keep saying the euro will survive, but I have my doubts.

[Goldie Locks]

They all need to go back to their own currency. This just proves globalization, one currency does not work.
Just ask Geert Wilders.

[MMC]

They all need to go back to their own currency. This just proves globalization, one currency does not work.
Just ask Geert Wilders.



http://www.youtube.com/watch?v=knFmjVf0jVk

Is he anything like Merovingian? :laugh: :wink:

[Carygrant]

Nobody with any real clout is seen to be initiating serious discussion about restructuring , as distinct from plugging the leaking dam.
Example , the 100 billion Euro firewall for Spain is possibly enough for a year , but the total Italy plus Spain requirement could be another two trillion euros .
Unfortunately such funds are not available either from EU countries ( hardly surprising) or from the ECB -- even if it issues Bonds : who exactly will buy them and for how long ?
Hand to mouth seems the only reasonable description . But when even the imaginary money runs out -- it requires real people to buy!! , What then??

[Conley]

Welcome Cary!

[Peter1469]

In a modern age of computers you would think that the Euro could be pegged to national economies. So Spain would have a Euro, Italy would have a Euro, and Germany would have a Euro. This would provide them the ability to manage local problems without breaking up the EZ.

[Carygrant]

In a modern age of computers you would think that the Euro could be pegged to national economies. So Spain would have a Euro, Italy would have a Euro, and Germany would have a Euro. This would provide them the ability to manage local problems without breaking up the EZ.


That is what was argued in the most violent way in the nineties before the creation of the euro zone .
In those days we were told we were stupid morons , living in the past and , if from Britain , little Englanders . We were ridiculed .
Trouble is that in those days " contagion" was in its infancy and so much simpler to unravel where it did exist . It looked as though we could avoid it by opting out and spreading our trade to reduce total risk .
Now it strangles everybody across the whole planet in terms of its effects , regardless of the degree of an individual countries true culpability for its creation .