5 countries will kill the Euro

papajohn56

papajohn56

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Europe's Web of Debt - Graphic - NYTimes.com

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Scary how high the public debt is for these countries, well over 100% of GDP. We're on our way
 


Regarding Italy you had to wonder at the time how they met the criteria for ever getting into the single currency. I'm sure there was a lot of massaging of interest rates and debt levels to fit the criteria. I guess secrets like that never really go away.
 
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That is one pretty cool graphic. I'd love to see one that included even more countries.
 
sorry guys, but it's so funny to see americans talking about debt. I love the dollar.. but the day that people won't give shit about your toilet paper quality money is coming.

CHF & NOK ftw

RUB & RMB ftw
 
ricdes said:
sorry guys, but it's so funny to see americans talking about debt. I love the dollar.. but the day that people won't give shit about your toilet paper quality money is coming.

CHF & NOK (and even russian money) ftw
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I'm sick and tired of getting classified as an "american". I'm a Virginian. I'd appreciate if you could keep your bigot, statist mentality out of this forum.
 
ricdes said:
sorry guys, but it's so funny to see americans talking about debt. I love the dollar.. but the day that people won't give shit about your toilet paper quality money is coming.

CHF & NOK ftw

RUB & RMB ftw
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the only difference is that we have this:

rbegw1.jpg
 
ricdes said:
sorry guys, but it's so funny to see americans talking about debt. I love the dollar.. but the day that people won't give shit about your toilet paper quality money is coming.

CHF & NOK ftw

RUB & RMB ftw
Click to expand...

Doesn't matter, there are other currencys out there that are valued at much less than the dollar and are still successful. Look at the Japanese and the Yen.
 
Rikfor said:
Yes, you can. If you control the printing presses.
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Nope. Printing money to help aid large government deficits causes the money supply to rise rapidly, fueling inflation and in some extreme cases causing hyperinflation.
 
Rage9 said:
Doesn't matter, there are other currencys out there that are valued at much less than the dollar and are still successful. Look at the Japanese and the Yen.
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Yes, and they deliberately keep their value low so that countries like the USA, which has a higher currency value than them, will buy more of their goods.

This leads to lobbyists pressing the politicians to have talks with those countries to escalate their monetary value because they think it is unfair that their local businesses have to compete with a business in one of those countries which have lower currency rates.

If a country's GDP is made up primarily of manufacturing industries that export globally, then there is nothing wrong with having a weak currency. However, if the country depends largely on buying materials to function (like the USA and other developed nations do) then a weak currency is bad since you can't buy as much.
 
Anybody know of a good video that goes over monetary policy relating to foreign exchange markets? I'm having some trouble getting to grips with this concept for some reason.
 
pat J said:
What do you mean? You can't just print more money to pay off your debt? :ugone2far:
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Do you know how the Euro works? There are 16 countries that are currently using it as their currency.

Lets assumes every country was free to print as much money as they want (which they are not). Do you think France would be happy if Spain payed off their debt by printing 1 trillion Euros? While they would get their money, they'd also lose a huge amount of it in the following inflation that would then go on to completely kill the economy in all of Europe.

Obviously not every Euro country can just print Euros. If that was true, Greece would just be printing away their debts. The whole point of having a unified currency is stability of that currency. The downside as Greece and a few other European countries are now noticing is that they gave up control over their monetary policy.

The only reason why America can (for the time being) print so much money is that they are exporting the inflation to China and all the other countries that have a huge trading surplus with the US.

Soon though when the standard of living in China will be that of a developed country and people will not be wanting to work for $100 a month anymore that surplus will vanish and with it the dollar will crash since the government still will have to print money to pay it's creditors.
 
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JamesH said:
Anybody know of a good video that goes over monetary policy relating to foreign exchange markets? I'm having some trouble getting to grips with this concept for some reason.
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[ame="http://www.youtube.com/watch?v=d0nERTFo-Sk"]YouTube- Broadcast Yourself.[/ame]
 
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