Eurozone will collapse... - Page 4

**Chris** · 29-06-2011, 08:52

Quote:

Originally Posted by Kymmy

Show's how little you understand the issue..

If one country drops the euro then it'll strengthen the rest.. The "Next country" line was purely due to the continued recession and not the euro..

@Chris, You have to give them credit though that it lasted this long before one of them got into trouble.. There though always was going to be an issue with so many individual markets trying to link themselves to a single currency.. I would have thought that the simple fact that every country within europe will never give up their own governmental powers and totally default to a european central government for all aspects of rule would have meant that the euro could never be anything but an experiment..

I wonder if the european union will give a push to certain countries and force them to drop out and then at least the core countries from which the euro is stabilised will have a chance to continue??

I find it difficult to give credit to people who experiment on such a scale as to put the economy of an entire country at risk ... at the end of the day, the federalist ideologues in Brussels aren't going to lose their plush offices and chauffeur-driven cars. The ordinary people of Greece, on the other hand, are now royally shafted whichever way the house of cards that is the Euro decides to fall.

The logical argument for tax and economic policy convergence within the Eurozone is of course irresistible. As I said earlier, the Dollar only works across the USA because there's a federal government sitting above the individual state governments, running a federal economic policy which includes massive transfers of wealth from the states that make money (like California) to those that don't (like Alaska).

I'm not sure, however, that even France or Germany are quite ready to embrace such a level of harmonization, which I think means either that a 12-member Euro is going to continue to lurch from one crisis to another, or else a smaller Eurozone will have to be created, comprised of those economies that genuinely can cope with it (i.e. only those that should have qualified to be in it in the first place).

denphone · 29-06-2011, 08:52

Quote:

Originally Posted by Kymmy

Show's how little you understand the issue..

If one country drops the euro then it'll strengthen the rest.. The "Next country" line was purely due to the continued recession and not the euro..

@Chris, You have to give them credit though that it lasted this long before one of them got into trouble.. There though always was going to be an issue with so many individual markets trying to link themselves to a single currency.. I would have thought that the simple fact that every country within europe will never give up their own governmental powers and totally default to a european central government for all aspects of rule would have meant that the euro could never be anything but an experiment..

I wonder if the european union will give a push to certain countries and force them to drop out and then at least the core countries from which the euro is stabilised will have a chance to continue??

Well maybe but here are comments from the Bank of England committee and another one from the IMF chief.

http://www.heraldscotland.com/news/p...isis-1.1108419

http://www.dailymail.co.uk/news/arti...=feeds-newsxml

**Kymmy** · 29-06-2011, 08:56

Domino effect only has credence if they don't pull out of the euro and the other countries prop them up.. (I personally think that the other Eurozone countries will drop greece like a hot potato if it gets any worse)

You have to take articles in context and not as a blanket

denphone · 29-06-2011, 09:04

Quote:

Originally Posted by Kymmy

Domino effect only has credence if they don't pull out of the euro and the other countries prop them up.. (I personally think that the other Eurozone countries will drop greece like a hot potato if it gets any worse)

You have to take articles in context and not as a blanket

Well everybody to their own opinion but l am not sure the Eurozone countries will drop Greece as they are in this together or thats what they keep telling us.

**Kymmy** · 29-06-2011, 09:08

If the greek vote goes against austerity measures then it'll be interesting to see how the main core of Europe and also of the IMF reacts..

ATM the benefits of the EU and of the IMF are finely balanced, if this takes it over the edge then we could see some drastic measures.. Throwing Greece to the wolves might be the only option to keep the balance intact. Remember we are in a worldwide recession still and most countries will have their back-up plan for self survival..

**Hugh** · 29-06-2011, 10:04

Interesting point from Robert Peston's blog

Quote:

Greece has what economists call a primary fiscal deficit, in that what it raises from taxes does not cover the basic running costs of the state, let alone its borrowing costs too.

And the banks can't be blamed for that, can they?

Not really a sound basis for going forward, is it?

**Kymmy** · 29-06-2011, 17:45

Well the Greek parliment have voted with common sense and passed the Austerity vote

http://www.bbc.co.uk/news/world-europe-13960947

Dai · 29-06-2011, 19:03

Quote:

Originally Posted by Kymmy

Well the Greek parliment have voted with common sense and passed the Austerity vote

http://www.bbc.co.uk/news/world-europe-13960947

Let's hope they do a better job than they have managed so far collecting taxes.

Tuftus · 29-06-2011, 21:31

Agreed, but why do the Greek masses dissagree and riot?

Do they not see that they are broke and there is no choice?

**Hugh** · 29-06-2011, 21:44

Quote:

Originally Posted by Tuftus

Agreed, but why do the Greek masses dissagree and riot?

Do they not see that they are broke and there is no choice?

The old "somebody else's problem" syndrome - why should they have to pay for their profligate spending (early retirement, high percentage of pay as pension, general tax avoidance).

staggie · 30-06-2011, 05:46

how about the moneys that greece makes from tourism whyb can that money not be used to help the people of greece and why cannot the fat cats in greece give up thier huge wages and live more sensibly like the rest of us

denphone · 30-06-2011, 05:49

Quote:

Originally Posted by Tuftus

Agreed, but why do the Greek masses dissagree and riot?

Do they not see that they are broke and there is no choice?

Because the Greeks are very tempermental and and hot headed by nature.

**Hugh** · 30-06-2011, 05:51

Actually, it is the fact that all levels of society have been avoiding paying taxes, not just the 'fat cats', and that Greece spent far more than it raised in taxes....

But hey - a class warrior never let's facts get in the way of a good diatribe, hey?

staggie · 30-06-2011, 05:54

im nota class warrior i just say when i think summats wrong
its not the working people of this counrty that hide money in tax havens and employ top accountents to find loop holes to avoid payying tax

**Hugh** · 30-06-2011, 07:37

Quote:

Originally Posted by staggie

im nota class warrior i just say when i think summats wrong
its not the working people of this counrty that hide money in tax havens and employ top accountents to find loop holes to avoid payying tax

As the kids say - ROFL......

I agree with you that everyone should pay their fair share of tax - however, avoiding paying tax is not illegal, evading it is...

Anyhoo, we were talking about Greece, where, as I stated, it isn't just the "fat cats", it is also the "working class" who avoid paying all the taxes they should....