http://www.businessweek.com/news/2011-10-16/eu-given-one-week-to-fix-crisis-as-g-20-warns-of-threat-to-world.html
The G20 leaders met this weekend and announced the government leaders in Europe have one week to solve their problems “or else” something bad will happen.
Riots continue in Rome.
It will be interesting in the coming months how the debate over immigration to the US starts to change when people want to “save” their European relatives from Euopean problem and relax and/or ignore immigration laws.
Germany is letting folks know today (Monday) that if they think Germany is going to step forward and solve the problem by itself, they better come up with a Plan B.
So if Germany pulls out of the Euro, does it pretty much fail? I can’t think of why it would not, Brits certainly won’t prop it up, they never were for it in the first place, I don’t think France can. That would leave America or the IMF to prop it up, yes/no?
Bingo!
Can anyone explain to the average taxpayer why the U.S. Treasury Secretary would be ordered to rescue a foreign currency that is a direct competitor to the U.S. dollar?
Well, the thinking goes like this.
If the EU falls apart, they won’t be able to buy things – like exports from the United States. That’s at least the thinking why Asia tanked last night.
My history teacher in high school had a suddenly personality change one day. She started wearing sunglasses inside the school during the day. All of sudden, her mantra became “All nations are interdependent”. I figured the zombies got to her.
Tim Geithner and Barack Obama are globalists. They see no value to nation states. Both grew up in Asia during the Vietnam war, their parents working for the Ford Foundation. Geithner is fluent in Mandarin Chinese.
Calling something American (like bailing out GM) only is used when the globalists want to loot the US Treasury and the sheep think we’re still living in the 1960s
By the way, I don’t know if that would mean the whole of the EU as a entity would fail tho, they went on for a long time without a currency, it’s more like a step back. It might start a call though for a stronger central government to the EU, giving them the ability to make more policy in member states, i.e. give Grease some adult supervision.
The problem they haven’t owned up to yet – is you can’t have a single currency with each country having its own printing press to fund its operations. The EU agreement had “rules” to try to keep countries like Greece from emptying the EU treasury, but 1) they lied and 2) the EU doesn’t have an effective plan to enforce the rules.
Switzerland had said they were going to throw everything they had at the problem to make sure the Swiss Franc did not get worth more than 1.20 Euros. In the past few days, it is now up to 1.23 Euros to buy a Franc, indicating that the Swiss are losing the battle.
There are moderately credible rumors that Germany has warehouses of DMarks ready to hit the streets. There is no precedent that I know of for undoing a common currency. England and Swizterland did not join the Euro system, so they would become important in the transition. Probably the Euro would continue to exist during a transition period, and float against the German Mark, although maybe Germany would hold the rate at 1:1 for a period of time or do something like only allow Germans to trade in their Euros – but doing something like that creates an immediate black market.
The current strategy is that they intend to put pressure on Tim Geithner – who frankly is all for making the IMF the defacto central bank of the entire world. We “backstop” the entire world financial system with just a common belief that we can’t allow it to fail.
But at least we have a line in the sand. Don’t let it slip beyond this date! The 23rd is probably a week from the actual drop-dead date. Greece is not going to have cash to pay its bills on the 1st (probably)
Moody’s is making it clear if the government of France starts to guarantee bank loans and / or sovereign debt of other countries, France’s AAA credit rating is going to drop. It’s getting more and more clear that French banks are going to be in big trouble if Greece just walks away from their debt.
But look it — as long as we have football, basketball, baseball and occupyball, all is well. Honest.
We need a rulebook for occupyball. You can’t have a real sport without rules.
” China offered to spend tens of billions buying European infrastructure projects and government debts. (Sunday Times)”
http://www.proactiveinvestors.co.uk/columns/ransquawk/6962/us-opening-news-including-china-offered-to-spend-tens-of-billions-buying-european-infrastructure-projects-and-government-debts-6962.html
(Just a reminder that the London Times is owned by the Globalist Rupert Murdoch’s News Corp)
It’s Thursday. Germany is telling France they can forget Germany picking up the tab for the bailout. Labor Unions and Communists in Greece are in the second day of a national strike.
Time to stock up on 50 pound bags of rice…