Larry Posted May 6, 2010 Share Posted May 6, 2010 Well that's already happenned... T-Bills for a while during the collapse actually were running bellow zero percent interest when you included all the serviec fees.2 year T-bills are currently running at about 1% interest... 90 day T bills at .16%. And that's with the Euro in tact. It was that last step that made it my "nightmare scenario". Link to comment Share on other sites More sharing options...
Johnny Punani Posted May 6, 2010 Share Posted May 6, 2010 Actually, the real problem is that the standard approach in a case like this is to devalue one's currency, and Greece can't do it like the UK is currently doing.Apparently a lot of economists were sounding this alarm before the Euro was formed, and I'm personally guessing that countries might start pulling out, as annoying as that would be for me as a traveller. I can deal with the exchange hassles as a traveller if I can get some good rates in certain countries. Link to comment Share on other sites More sharing options...
techboy Posted May 6, 2010 Share Posted May 6, 2010 I can deal with the exchange hassles as a traveller if I can get some good rates in certain countries. As a lover of Italy, there is that, yes. Link to comment Share on other sites More sharing options...
Corcaigh Posted May 6, 2010 Share Posted May 6, 2010 I can deal with the exchange hassles as a traveller if I can get some good rates in certain countries. Be careful though in case you catch socialism. Link to comment Share on other sites More sharing options...
Corcaigh Posted May 6, 2010 Share Posted May 6, 2010 It's not a "joke". But the Euro has huge problems... It's hard to have a unified currency when you have 27 sovergn states who all have independant monitary policies.They had to sign an agreement to keep their debt/gdp ratio down when they signed up, and everybody just ignored it... you guys could use an Alexander Hamilton over there. That was always the discussion ... how a level of economic integration could work without too much central control. That said, the past decade has seen a growth in the Eurozone economically so there have been many benefits. The absence of a shared currency is a very serious impedement as a business trying to operate across borders. Link to comment Share on other sites More sharing options...
Larry Posted May 6, 2010 Share Posted May 6, 2010 I can deal with the exchange hassles as a traveller if I can get some good rates in certain countries. I hear there's this place on the internet, where you can hire somebody to carry your bags. Link to comment Share on other sites More sharing options...
ABQCOWBOY Posted May 6, 2010 Share Posted May 6, 2010 Can you believe that some European countries have a bigger deficite to gdp ratio than we do? Holly Cow what were they thinking?Spain and the UK are both top 4 economomies in Europe... I can. There are different schools of thought on carrying debt but I, for one, am not in favor of it. The UK, up until very recently, was in the midst of the worst recession that country had experienced since WWII. It is one of the most diversified economies of all the major economies in the world. Globalization is a big reason for this but regardless, it won't save them if the Euro goes belly up. They will fill the pinch. Spain's economy is done. Unemployment near 20% and the worst recession in 50 years, this could screw them beyond recovery. Link to comment Share on other sites More sharing options...
JMS Posted May 6, 2010 Author Share Posted May 6, 2010 That was always the discussion ... how a level of economic integration could work without too much central control. That said, the past decade has seen a growth in the Eurozone economically so there have been many benefits.The absence of a shared currency is a very serious impedement as a business trying to operate across borders. The instability is really just kicking in now.... It's the instability which is going to rattle you guys, and us to our bones.... Well see if you still think it's shown economic benifits after the coming hard times.... When German and French banks will be bailing out Greek, Spanish, and UK institutions with no real ability to mandate sound fiscal policy. Hell the Greeks are already rioting in the streets over just the rumors of cutbacks. What's going to be very very interesting is what happens next. The way the EU papers are drawn up it's almost impossible to get out. Which means addoption of a stronger central authority might be the only option moving forward. Which is going to be a very interesting debate and fun to watch. They will eventually get it worked out.... .To many smart people in Europe not too. But it's the old chinese curse... "May you live in interesting times". Link to comment Share on other sites More sharing options...
ABQCOWBOY Posted May 6, 2010 Share Posted May 6, 2010 The instability is really just kicking in now.... It's the instability which is going to rattle you guys, and us to our bones.... Well see if you still think it's shown economic benifits after the coming hard times.... When German and French banks will be bailing out Greek, Spanish, and UK institutions with no real ability to mandate sound fiscal policy.Hell the Greeks are already rioting in the streets over just the rumors of cutbacks. What's going to be very very interesting is what happens next. The way the EU papers are drawn up it's almost impossible to get out. Which means addoption of a stronger central authority might be the only option moving forward. Which is going to be a very interesting debate and fun to watch. They will eventually get it worked out.... .To many smart people in Europe not too. But it's the old chinese curse... "May you live in interesting times". Interestingly enough, the strongest economy in that part of the world may end up being one that is not European. It might end up being Russia's. After suffering economic contraction in 2008-09, Russia is set up to take advantage of Europes downfall here. As one of the leading exporters of Natural Gas and oil, two things that will be in demand in the coming days, as well as an emerging wheat exporter, Russia is also a large exporter of Steel and aluminum. There have real needs for technology and Europe could provide that. Russia has capitol to spend and I would not be surprised to see Russia and many of the European nations form much closer relationships in the future. I can't see how that would be very good for us. Link to comment Share on other sites More sharing options...
luckydevil Posted May 6, 2010 Share Posted May 6, 2010 Frankly, the economic differences between Europe and America are vastly overstated. The entire western world embraces social democracy. We are in just as bad shape as they are. We are all linked here. Link to comment Share on other sites More sharing options...
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