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(CNBC)   The Euro is circling the DRAAAAAAIN   (cnbc.com) divider line 46
    More: Scary, DRAAAAAAIN, Jean-Claude Juncker, Prime Ministers of Greece, Niall Ferguson, currency markets, single currency, Matthew Lynn, currency  
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3147 clicks; posted to Business » on 22 Aug 2012 at 12:45 PM (2 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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vpb [TotalFark]
2012-08-22 10:50:33 AM
Has it occurred to this guy Greece isn't the only country that uses the Euro? I doubt that German companies have any problem buying imports with Euros.
 
vpb [TotalFark]
2012-08-22 10:54:29 AM
He suggests that peripheral member states with high bond yields should be allowed to leave the euro and predicts that their recovery would be swift if they were allowed to do so.

Never mind, I guess he does realize that. Just another misleading headline.
 
2012-08-22 12:30:32 PM
Business reporting - if it isn't sunshine and unicorns, it's economic apocalypse.
 
2012-08-22 12:49:22 PM

vpb: He suggests that peripheral member states with high bond yields should be allowed to leave the euro and predicts that their recovery would be swift if they were allowed to do so.

Never mind, I guess he does realize that. Just another misleading headline.


Well, that would be the death of the Euro. Why would I invest in the Euro if member nations are just going to come and go when things get tough? If the EU isn't willing to back up the Euro debt, what is it worth?
 
2012-08-22 12:52:18 PM

Lost Thought 00: vpb: He suggests that peripheral member states with high bond yields should be allowed to leave the euro and predicts that their recovery would be swift if they were allowed to do so.

Never mind, I guess he does realize that. Just another misleading headline.

Well, that would be the death of the Euro. Why would I invest in the Euro if member nations are just going to come and go when things get tough? If the EU isn't willing to back up the Euro debt, what is it worth?


Exactly. The solution here is for the European Central Bank to issue Eurobonds which would then be used to finance the sovereign debts of the member states. Unfortunately, the Germans are dead set against this.
 
2012-08-22 12:59:24 PM

Stile4aly: Lost Thought 00: vpb: He suggests that peripheral member states with high bond yields should be allowed to leave the euro and predicts that their recovery would be swift if they were allowed to do so.

Never mind, I guess he does realize that. Just another misleading headline.

Well, that would be the death of the Euro. Why would I invest in the Euro if member nations are just going to come and go when things get tough? If the EU isn't willing to back up the Euro debt, what is it worth?

Exactly. The solution here is for the European Central Bank to issue Eurobonds which would then be used to finance the sovereign debts of the member states. Unfortunately, the Germans are dead set against this.


Wouldn't the charter that established the EU have to be changed to allow Eurobonds? Basically something on the order of us amending the constitution.

Correct me if I'm wrong.

/like I had to give permission
 
2012-08-22 01:06:25 PM

Stile4aly: Lost Thought 00: vpb: He suggests that peripheral member states with high bond yields should be allowed to leave the euro and predicts that their recovery would be swift if they were allowed to do so.

Never mind, I guess he does realize that. Just another misleading headline.

Well, that would be the death of the Euro. Why would I invest in the Euro if member nations are just going to come and go when things get tough? If the EU isn't willing to back up the Euro debt, what is it worth?

Exactly. The solution here is for the European Central Bank to issue Eurobonds which would then be used to finance the sovereign debts of the member states. Unfortunately, the Germans are dead set against this.


...as it would put them on the hook for the debt they didn't run up.
 
2012-08-22 01:08:23 PM

AcneVulgaris: ...as it would put them on the hook for the debt they didn't run up.


This. I was going to say "...because they're smart."
 
2012-08-22 01:30:09 PM
It's still worth more than the dollar even though it started out on par with it.
 
2012-08-22 01:30:51 PM
$1.25:€1

Totally circling the drain
 
2012-08-22 01:37:02 PM
CNBC, I just want to thank you for giving me a description of what a zombie looks like. Your journalistic excellence is unparalleled.
 
2012-08-22 01:39:06 PM

impaler: Business reporting - if it isn't sunshine and unicorns, it's economic apocalypse.


This
 
2012-08-22 01:43:29 PM
"There are already reports that oil traders don't want to supply clients in Greece," Lynn said.

Did you hear the reports about my huge penis? There are already reports about it.
 
2012-08-22 01:48:37 PM

jigger: It's still worth more than the dollar even though it started out on par with it.


The initial valuation was set at $1.16 per Euro.
 
2012-08-22 01:48:42 PM

BigBooper: Wouldn't the charter that established the EU have to be changed to allow Eurobonds? Basically something on the order of us amending the constitution.


Sort of, though it's currently much harder than amending the US Constitution.
 
2012-08-22 01:50:20 PM

Karma Curmudgeon: jigger: It's still worth more than the dollar even though it started out on par with it.

The initial valuation was set at $1.16 per Euro.


It's still higher than that, though not by as much (a little less than $1.25 per Euro, according to xe.com as of this writing).
 
2012-08-22 01:51:36 PM

impaler: Business reporting - if it isn't sunshine and unicorns, it's economic apocalypse.


The volume (and thus, money flow - typically from Main Street to Wall Street) is from fear and bad news. This year serves a second purpose, as fear and bad news will also get their favorite candidate elected. CNBC is basically a Wall St. shill, so no I'm not surprised they want to stir up fears about the Euro.
 
2012-08-22 01:52:56 PM

Millennium: It's still higher than that, though not by as much (a little less than $1.25 per Euro, according to xe.com as of this writing).


Exactly. Just clarifying.
 
2012-08-22 01:53:55 PM

AcneVulgaris: Stile4aly: Lost Thought 00: vpb: He suggests that peripheral member states with high bond yields should be allowed to leave the euro and predicts that their recovery would be swift if they were allowed to do so.

Never mind, I guess he does realize that. Just another misleading headline.

Well, that would be the death of the Euro. Why would I invest in the Euro if member nations are just going to come and go when things get tough? If the EU isn't willing to back up the Euro debt, what is it worth?

Exactly. The solution here is for the European Central Bank to issue Eurobonds which would then be used to finance the sovereign debts of the member states. Unfortunately, the Germans are dead set against this.

...as it would put them on the hook for the debt they didn't run up.


They're already on the hook. The German government and German banks hold Greek/Italian/Spanish/etc debt. If those countries exit the Euro, that debt will become near worthless. They can either take a partial share in rescuing those countries now or they can eat the full cost of those investments later.
 
2012-08-22 01:57:47 PM

BigBooper: Stile4aly: Lost Thought 00: vpb: He suggests that peripheral member states with high bond yields should be allowed to leave the euro and predicts that their recovery would be swift if they were allowed to do so.

Never mind, I guess he does realize that. Just another misleading headline.

Well, that would be the death of the Euro. Why would I invest in the Euro if member nations are just going to come and go when things get tough? If the EU isn't willing to back up the Euro debt, what is it worth?

Exactly. The solution here is for the European Central Bank to issue Eurobonds which would then be used to finance the sovereign debts of the member states. Unfortunately, the Germans are dead set against this.

Wouldn't the charter that established the EU have to be changed to allow Eurobonds? Basically something on the order of us amending the constitution.

Correct me if I'm wrong.

/like I had to give permission


I thought that the EU nations failed to approve any constitution and that's one of the reasons why EU cannot do EuroBonds.
 
2012-08-22 02:00:31 PM

Stile4aly: AcneVulgaris: Stile4aly: Lost Thought 00: vpb: He suggests that peripheral member states with high bond yields should be allowed to leave the euro and predicts that their recovery would be swift if they were allowed to do so.

Never mind, I guess he does realize that. Just another misleading headline.

Well, that would be the death of the Euro. Why would I invest in the Euro if member nations are just going to come and go when things get tough? If the EU isn't willing to back up the Euro debt, what is it worth?

Exactly. The solution here is for the European Central Bank to issue Eurobonds which would then be used to finance the sovereign debts of the member states. Unfortunately, the Germans are dead set against this.

...as it would put them on the hook for the debt they didn't run up.

They're already on the hook. The German government and German banks hold Greek/Italian/Spanish/etc debt. If those countries exit the Euro, that debt will become near worthless. They can either take a partial share in rescuing those countries now or they can eat the full cost of those investments later.


It's kinda funny that Germany has finally taken over Europe, this time not with war but with fiscal policy.
 
2012-08-22 02:34:57 PM

shortymac: It's kinda funny that Germany has finally taken over Europe, this time not with war but with fiscal policy.


And they get to take advantage of the lower value of the Euro relative to where the Deutschemark would be if they weren't part of the EU, bolstering their exports significantly, while maintaining the ability to be self-righteous about how they work harder than everyone else. Win-win.
 
2012-08-22 02:51:14 PM

Stile4aly: AcneVulgaris: Stile4aly: Lost Thought 00: vpb: He suggests that peripheral member states with high bond yields should be allowed to leave the euro and predicts that their recovery would be swift if they were allowed to do so.

Never mind, I guess he does realize that. Just another misleading headline.

Well, that would be the death of the Euro. Why would I invest in the Euro if member nations are just going to come and go when things get tough? If the EU isn't willing to back up the Euro debt, what is it worth?

Exactly. The solution here is for the European Central Bank to issue Eurobonds which would then be used to finance the sovereign debts of the member states. Unfortunately, the Germans are dead set against this.

...as it would put them on the hook for the debt they didn't run up.

They're already on the hook. The German government and German banks hold Greek/Italian/Spanish/etc debt. If those countries exit the Euro, that debt will become near worthless. They can either take a partial share in rescuing those countries now or they can eat the full cost of those investments later.


So the choice is take a bath on the money you were stupid enough to loan them in the past, or keep loaning them money in the hope that Greece will eventually get it's act together - when you remove the pain and potential negative consequences. And then magically pay you back.

Yeah, I'd go with option one myself.
 
2012-08-22 02:56:27 PM

AcneVulgaris: ...as it would put them on the hook for the debt they didn't run up.


that's part of joining a union. Germany never should have joined the Euro if they weren't willing to cover other nation's debts (and in turn have other nations cover theirs when Germany inevitably goes into decline)
 
2012-08-22 03:20:56 PM
What Happened After Europe's Last Three Currency "Unions" Collapsed


It may come as a surprise to some of our younger readers, that the Eurozone, and its associated currency, is merely the latest in a long series of failed attempts to create a European currency union and a common currency. Three of the most notable predecessors to the EUR include the Hapsburg Empire, the Soviet Union, and Yugoslavia. Obviously, these no longer exist. Just as obvious, all of these unions, having spent time, energy, money, and effort to change the culture and traditions of member countries and to perpetuate said unions, had no desire, just like Brussels nowadays, to see these unions implode. The question then is: what happened after these multi-nation currency unions fails. VOX kindly answers: "they all ended with disastrous hyperinflation."

Just in case anyone missed it, here it is again from VOX:

In the last century, Europe saw the collapse of three multi-nation currency zones, the Habsburg Empire, the Soviet Union, and Yugoslavia. They all ended in major disasters with hyperinflation. In the Habsburg Empire, Austria and Hungary faced hyperinflation. Yugoslavia experienced hyperinflation twice. In the former Soviet Union, ten out of 15 republics had hyperinflation (e.g. Pasvolsky 1928, Dornbusch 1992, Pleskovic and Sachs 1994, and Åslund 1995).
So... trying to pull infinite demand from the future to the present once the ability to fund said present deferred demand ends, has consequences? Oh yes, Virginia. It does indeed:

The output falls were horrendous and long lasting. The statistics are flimsy, but officially the average output fall in the former Soviet Union was 52%, and in the Baltics it amounted to 42% (Åslund 2007, 60). Five out of twelve post-Soviet countries - Ukraine, Moldova, Georgia, Kyrgyzstan, and Tajikistan - had not reached their 1990 GDP per capita levels in purchasing power parities by 2010. Similarly, out of seven Yugoslav successor states, at least Serbia and Montenegro, and probably Kosovo and Bosnia-Herzegovina, had not exceeded their 1990 GDP per capita levels in purchasing power parities two decades later (World Bank 2011). Arguably, Austria and Hungary did not recover from their hyperinflations in the early 1920s until the mid-1950s. Thus half the countries in a currency zone that broke up experienced hyperinflation and did not reach their prior GDP per capita in purchasing power parities until about a quarter of a century later.
What was the catalyst:

...systemic change, competitive monetary emission leading to hyperinflation, collapse of the payments system, exclusion from international finance, trade disruption, and wars.
It's all good though: Europe has a beneficial donor with an endless sack of money - Germany - and 80 some million people who will never, ever consider voting out those politicians who jeopardize their standard of living (regardless how it was obtained, but hard work is a distinct possibility). Ever. Or maybe they will? Maybe they will realize, as they should have over a year ago, that each passing day that nothing changes, and the broken status quo persists, simply means the pain in the inevitable end will merely be that much greater? If recent elections are any indication, Europe should probably be very concerned. Of course, this being Europe, and the market being the market, the fact that there is reason to worry, will provide the market with reason not to worry. After all someone else will make everything better: the central planners made risk of failure illegal.

Then again...

Sinn (2011) has argued that "the Eurozone payments system has been operating as a hidden bailout whereby the Bundesbank has been lending money to the crisis-stricken Eurozone members via the Target system." He has alternatively proposed to cap the Target2 balances, settle them in hard assets, or transform them into short-term Eurobonds. Karl Whelan (2011) and others oppose Sinn, arguing that the Bundesbank has claims on the ECB system as a whole, not on individual national central banks. Whelan points out that limiting a Target2 balance would amount to cutting out a country from the euro system.
Some will say that this €700 billion + contingent liability is not really a liability until what has to happen - a member country departing - finally departs. Which it will. Sooner or later. So all debate is absolutely idiotic in this regard.

If one country (Greece) departs from the Eurozone or if its Target2 balances are capped, the current slow bank run from the south will accelerate quickly and become a massive bank run from most banks in southern Europe, and the banking system would stop working. The Eurozone payments system would stop functioning because it is centralized to the ECB. To re-establish a payments system is both politically and technically difficult. In the former Soviet Union, it took three years to do so. Currency controls would arise and a liquidity freeze would occur. If the drachma were reintroduced in the midst of a severe financial crisis, its exchange rate would plummet like a stone by probably 75%-80%. High inflation would result and mass bankruptcies ensue because of currency mismatches. Output would plunge and unemployment soar. Greece would experience a new default and other countries would follow.

For all these reasons, Greece or any other financially weak country is unlikely to depart from the Eurozone. In the three hyperinflationary currency union collapses, it was small, wealthy counties that left first: Czechoslovakia from the Habsburg Empire, Slovenia and Croatia from Yugoslavia, and the three Baltic states from the former Soviet Union. The countries that departed early and resolutely were most successful. Hence, the main concern should be whether small, wealthy northern countries want to abandon the Eurozone.
Finally considering the article was written by a member of the status quo who stands to lose his tenure, and his livelihood, if the voodoo he preaches is found to be hollow, the conclusion is obvious:

The conclusion is that the Eurozone should be maintained at almost any cost. All the economic problems in the current crisis can be resolved within the Eurozone. In order to maintain the Eurozone Eurozone-wide clearing must be maintained in full. The Target2 balances should be resolved by reforms, not by capping national balances. The only reasons for a breakup of the Eurozone would be that Eurozone governance fails completely or that one nation decides to leave. If the breakup starts, it would be better to agree on a complete and speedy dissolution into the old national currencies.
The "any cost" of course, has to be bourne by Germany. Which this time around is expected to merely stand there as its deadbeat neighbors continue to mooch off its generosity. Oddly enough, all the previous failed monetary regimes had a strong and supposedly munificent hegemon too, to pull a Realpolitik term.

What is certainly obvious is that in none of the previous occasions of monetary union collapse did the member countries think anything else. In fact, we can say what tenured economists said about the specter of the Hapsburg, the Soviet and Yugoslav collapse with absolute certainty: "the conclusion is that these should be maintained at almost any cost."

They weren't. And "disastrous hyperinflation" followed.


http://www.zerohedge.com/news/what-happened-after-europes-last-three- c urrency-unions-collapsed
 
2012-08-22 03:28:38 PM

Dadoody: shiatty Blog Quote Redacted


Such lifeless, apathetic, boring trolls we get these days. Fark deserves better.
 
2012-08-22 03:30:22 PM

Stile4aly: AcneVulgaris: Stile4aly: Lost Thought 00: vpb: He suggests that peripheral member states with high bond yields should be allowed to leave the euro and predicts that their recovery would be swift if they were allowed to do so.

Never mind, I guess he does realize that. Just another misleading headline.

Well, that would be the death of the Euro. Why would I invest in the Euro if member nations are just going to come and go when things get tough? If the EU isn't willing to back up the Euro debt, what is it worth?

Exactly. The solution here is for the European Central Bank to issue Eurobonds which would then be used to finance the sovereign debts of the member states. Unfortunately, the Germans are dead set against this.

...as it would put them on the hook for the debt they didn't run up.

They're already on the hook. The German government and German banks hold Greek/Italian/Spanish/etc debt. If those countries exit the Euro, that debt will become near worthless. They can either take a partial share in rescuing those countries now or they can eat the full cost of those investments later.


In a sensible world, the German government would be indifferent to the consequences local banks would face from their own shiatty investments.

But people here defend TARP night and day, so I guess we're nowhere there yet.
 
2012-08-22 03:39:11 PM

Karma Curmudgeon: jigger: It's still worth more than the dollar even though it started out on par with it.

The initial valuation was set at $1.16 per Euro.


It was around US$0.89 per Euro when I hit Ireland in early 2002, as they adopted it there. Good times.
 
2012-08-22 03:47:33 PM
IT'S THE FINAL COUNTDOWN!
 
2012-08-22 04:03:28 PM

YixilTesiphon: Stile4aly: AcneVulgaris: Stile4aly: Lost Thought 00: vpb: He suggests that peripheral member states with high bond yields should be allowed to leave the euro and predicts that their recovery would be swift if they were allowed to do so.

Never mind, I guess he does realize that. Just another misleading headline.

Well, that would be the death of the Euro. Why would I invest in the Euro if member nations are just going to come and go when things get tough? If the EU isn't willing to back up the Euro debt, what is it worth?

Exactly. The solution here is for the European Central Bank to issue Eurobonds which would then be used to finance the sovereign debts of the member states. Unfortunately, the Germans are dead set against this.

...as it would put them on the hook for the debt they didn't run up.

They're already on the hook. The German government and German banks hold Greek/Italian/Spanish/etc debt. If those countries exit the Euro, that debt will become near worthless. They can either take a partial share in rescuing those countries now or they can eat the full cost of those investments later.

In a sensible world, the German government would be indifferent to the consequences local banks would face from their own shiatty investments.

But people here defend TARP night and day, so I guess we're nowhere there yet.


In a sensible world, banks would be regulated in such a way that they're incapable of creating systemic risk. Since we do not live in a sensible world, we need to realize "let them fail" isn't a policy proscription so much as it's a suicide pill.
 
2012-08-22 04:08:41 PM
Britain still rubbing it's arm where it hurt itself patting itself on the back. In other news, they dodged a bullet on that one.
 
2012-08-22 04:14:19 PM
The civil wars that will erupt in Greece, Spain, and possibly Italy when the Euro collapses are going to make Bosnia in the 1990s look like a minor disturbance.
 
2012-08-22 04:17:26 PM
It's like going to lunch with co-workers. At first it's just three of you, but then Larry hears you
talking about it, and HE wants to go, and then six more people spot you walking out in a group
and before you know it you're at some huge table with a bunch of assholes you don't even know
who are ordering steak and margarita pitchers and expect you to subsidize their lunch because
"hey, that's fair". fark you, no it isn't. I stayed within my means and you're acting like a farking child,
and now in addition to stiffing the waitress on the tip, you're asking her to split the bill on 17 separate
farking debit cards. fark you all, I'm bringing my lunch from now on.
 
2012-08-22 04:23:32 PM
I live in Austria which has an unemployment rate around 4%, sound and sustainable fiscal policies, extensive and excellent government services, and currently the government debt issued trades at negative real interest rates.

If the euro were to collapse Austria would quickly and orderly return to their old currency which would rapidly appreciate making shiat from abroad and vacations in the south much cheaper.

Might hurt our export industry, but that was doing fine when the euro traded in the 1.59 range against the dollar, so who knows.
 
2012-08-22 04:24:57 PM

vpb: He suggests that peripheral member states with high bond yields should be allowed to leave the euro and predicts that their recovery would be swift if they were allowed to do so.

Never mind, I guess he does realize that. Just another misleading headline.


I am not sure what he realises. He makes following claim:

"He says countries can no longer use the single currency for imports meaning it is effectively ceasing to act like money."

Uh yeah, either he's a complete moron, or he's lying. Of course anyone can make purchases in Euro's. What he's talking about is Greece not being able to recieve long term credit in Euros, because they might pay back in another currency.

That's a lie, Greece can't recieve credit because they're broke. Their currency is irrelevant to that fact, and won't change, when, if, they start using Drachma.


I wonder what this liar has to gain from this, anyone who can influence the fate of the Euro knows he's bullshiatting.
 
2012-08-22 04:36:28 PM

quick_thinkfast: I live in Austria which has an unemployment rate around 4%, sound and sustainable fiscal policies, extensive and excellent government services, and currently the government debt issued trades at negative real interest rates.

If the euro were to collapse Austria would quickly and orderly return to their old currency which would rapidly appreciate making shiat from abroad and vacations in the south much cheaper.

Might hurt our export industry, but that was doing fine when the euro traded in the 1.59 range against the dollar, so who knows.


When the Euro falls Austrians will rejoice with another shrimp on the barbie!
 
2012-08-22 04:39:22 PM

spawn73: vpb: He suggests that peripheral member states with high bond yields should be allowed to leave the euro and predicts that their recovery would be swift if they were allowed to do so.

Never mind, I guess he does realize that. Just another misleading headline.

I am not sure what he realises. He makes following claim:

"He says countries can no longer use the single currency for imports meaning it is effectively ceasing to act like money."

Uh yeah, either he's a complete moron, or he's lying. Of course anyone can make purchases in Euro's. What he's talking about is Greece not being able to recieve long term credit in Euros, because they might pay back in another currency.

That's a lie, Greece can't recieve credit because they're broke. Their currency is irrelevant to that fact, and won't change, when, if, they start using Drachma.


I wonder what this liar has to gain from this, anyone who can influence the fate of the Euro knows he's bullshiatting.


Rumor is that many multinational companies will only accept cash payments now from Greek purchasers.
 
2012-08-22 04:40:12 PM

beta_plus: spawn73: vpb: He suggests that peripheral member states with high bond yields should be allowed to leave the euro and predicts that their recovery would be swift if they were allowed to do so.

Never mind, I guess he does realize that. Just another misleading headline.

I am not sure what he realises. He makes following claim:

"He says countries can no longer use the single currency for imports meaning it is effectively ceasing to act like money."

Uh yeah, either he's a complete moron, or he's lying. Of course anyone can make purchases in Euro's. What he's talking about is Greece not being able to recieve long term credit in Euros, because they might pay back in another currency.

That's a lie, Greece can't recieve credit because they're broke. Their currency is irrelevant to that fact, and won't change, when, if, they start using Drachma.


I wonder what this liar has to gain from this, anyone who can influence the fate of the Euro knows he's bullshiatting.

Rumor is that many multinational companies will only accept cash payments now from Greek purchasers.


ugh, I meant only accept upfront cash payments.

FTFM
 
2012-08-22 04:50:37 PM

beta_plus: beta_plus:
That's a lie, Greece can't recieve credit because they're broke. Their currency is irrelevant to that fact, and won't change, when, if, they start using Drachma.


I wonder what this liar has to gain from this, anyone who can influence the fate of the Euro knows he's bullshiatting.

Rumor is that many multinational companies will only accept cash payments now from Greek purchasers.

ugh, I meant only accept upfront cash payments.

FTFM


Who can blame them. But that goes contrary to what he said, apparently they still like Euros, they just don't trust Greeks. ;)

I read in Danish news that Danish companies dealing with Greece stopped accepting anything but cash up front like 3 months ago. The only exeption being Novo Nordisk, who figured it would be bad for their reputation if people started dying from the lack of medicine Greece can't afford. So now they're just fronting Greece the same "crap" medicine they sell to Africa.
 
2012-08-22 05:34:31 PM

you have pee hands: aintaining the ability to be self-righteous about how they work harder than everyone else.


they're right
 
2012-08-22 08:24:14 PM
There are already reports that oil traders don't want to supply clients in Greece," Lynn said.

"Why not? Because in six months' time when payment falls due they may not get paid in the currency the deal was struck in - but one worth much less."



When did people stop trading oil in dollars and start using euros? I must have missed that memo.
 
2012-08-22 08:29:16 PM

jigger: It's still worth more than the dollar even though it started out on par with it.


Yeah the US dollar isn't doing that well either.

In 2001 48 US cents bought 1 Australian dollar. Now it costs 105 US cents to buy 1 Australian dollar.
 
2012-08-22 09:30:27 PM
fc08.deviantart.net

Euro go down the hoooole
 
2012-08-22 10:48:49 PM

spawn73: beta_plus: beta_plus:
That's a lie, Greece can't recieve credit because they're broke. Their currency is irrelevant to that fact, and won't change, when, if, they start using Drachma.


I wonder what this liar has to gain from this, anyone who can influence the fate of the Euro knows he's bullshiatting.

Rumor is that many multinational companies will only accept cash payments now from Greek purchasers.

ugh, I meant only accept upfront cash payments.

FTFM

Who can blame them. But that goes contrary to what he said, apparently they still like Euros, they just don't trust Greeks. ;)

I read in Danish news that Danish companies dealing with Greece stopped accepting anything but cash up front like 3 months ago. The only exeption being Novo Nordisk, who figured it would be bad for their reputation if people started dying from the lack of medicine Greece can't afford. So now they're just fronting Greece the same "crap" medicine they sell to Africa.


Heh, that's actually I got the "rumor" from.

/half dane
 
2012-08-23 07:49:35 AM
I think more lending and entitlements will fix Greece!

-typical Total Farker
 
2012-08-23 09:25:27 AM

Nemo's Brother: I think more lending and entitlements will fix Greece!

-typical Total Farker


Why did austerity work relatively well in some countries (Scandinavia in the 1990s, Estonia today) and is failing miserably in others (Britain's back in recession, for example)?
 
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