Oscaresque
Registered User
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- 94
I couldn't agree with you more. There isn't enough appreciation for the Germanic way of business or governance in this country. Instead all you hear is this 'Irish Sun', 'Daily Star' mentality that, 'of course Germany should bail others out following on from WW2'Or put another way, if you expect to be bailed out by the Germans, the Germans will expect you to play by their rules...
I couldn't agree with you more. There isn't enough appreciation for the Germanic way of business or governance in this country. Instead all you hear is this 'Irish Sun', 'Daily Star' mentality that, 'of course Germany should bail others out following on from WW2'
Let's way and see if Greece can meet the yet to be imposed strict conditions that Merkel keeps saying will be attached as a condition precedent to the Greek bailout. Things will become a lot clearer to all of us then. And remeber how Ireland rebuked Germany a number of years ago when Germany questioned the fundamentals of the Irish economy? The Germans are having the last laught now, unles of course they get dragged into the blackhole consuming some other EU members.
I don't know what Germany will have to lose to decide to exit the Euro. But to leave the EU would not appear to be an option for it. May be some economist out there might comment?
The EU countered this argument by saying that they would impose and enforce debt and borrowing limits. These were of course not enforced, and in any case some countries lied to get around them.
A collapse of a currency does not mean that it doesn't continue to exist. The Zimbabwean Dollar still exists, but on the world market it buys bugger all. I don't believe that the Euro is heading the same way as the Zimbabwean Dollar (at least not in the near term), but allowing members to break the growth and stability pact and then bailing them out is seriously undermining the credibility of the Euro currency.No. Euro will continue. Its one of those things where once introduced, it can never be withdrawn. The people and businesses of Europe simply wont tolerate a return to having to change currencies and incur exchange rate fees/risks.
Absolutely correct. Leaving the Euro and devaluing the new currency to solve your problems is flawed with infinite stupidity. However, leaving the Euro to switch to a stronger more stable currency is certainly something being discussed behing the scenes in Germany, and the German economy would greatly benefit from this.People also forget that a currency is NOT and economy. Changing currency will not change underlying poor economic choices or structures in some countries.
However, leaving the Euro to switch to a stronger more stable currency is certainly something being discussed behing the scenes in Germany, and the German economy would greatly benefit from this.
Your comment is deeply flawed here. If you observe the EUR/USD FX rate at times of German economic news releases you will see that it significantly impacts the rate, so what happens Germany hugely influences the exchange rate.I have my doubts that the German Mark would be stronger that the Euro even if the 2 co-existed. German industry would lose a lot of business. In times like now, when costs are an issue, even a 2-3% exchange rate fee and 5-6% exchange rate risk premium would put German business at a significant disadvantage. Yes, there are a load of eastern European businesses operating competitively without the Euro, but they all have much lower costs/wages than Germany. UK industry has suffered by exclusion from the Euro, German industry will also.
I agree that the way the British media has covered the possible collapse of the Euro is sensational, and all they are trying to do is make sterling, which is a lot lot weaker than the Euro, look better to the public. However, just because they do not adequately back up their claims, does not mean that there are no good reasons.To be honest, there is absolutely no danger of the Euro breaking up - all we get is a series of tabloid headlines with no substance behind them. While you may get the odd gripe from the tabloid press and certain political groups in Germany, there is no appetite among the ordinary German punter to leave the Euro.
While the Euro gained popularity in Germany, it initially was very unpopular. Stating that there would be no public appetite in the German public to leave the Euro is unfounded, and it won't take long to **** the German taxpayer off enough, if the other PIIGS countries come looking for money too.
I've said this before on other threads, buying sterling is like jumping from the frying pan into the fire.I am increasingly worried about the possibility that Greece might be forced out of the single currency. If that happens, how will we be affected, viz, the value of the Euro, Sterling and the cost of commodities such as gold. I hold most of our savings in Irish based € deposits.
You need to do your own homework, but here are some observations. If you have all your money in euro then you are putti git all at risk of the euro losing value or worst case scenario, a collapse.Is there anything I can do to avoid the fallout if Greece defaults/exits Euro? Should I buy sterling, gold, lodge money with a German bank? Can I do that from here? Should I pay off the mortgage? What can I do?
Slim
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