It isn't a normal fiat currency.
Nigel Farage gives a nice speech to describe the situation that has been created.
Showing posts with label Nigel Farage. Show all posts
Showing posts with label Nigel Farage. Show all posts
Saturday, January 18, 2014
Greece, Ireland, Portugal, Spain, what is wrong
The Euro is a way for the 'richer' countries to extract value from the poorer countries.
It isn't a normal fiat currency.
Nigel Farage gives a nice speech to describe the situation that has been created.
It isn't a normal fiat currency.
Nigel Farage gives a nice speech to describe the situation that has been created.
Thursday, March 21, 2013
Euro Doomed
The Euro was doomed to fail the instant it was created.
It is not a true fiat currency. A true fiat currency can be printed, at will, for whatever reason. Need more cash, just issue more!
The euro requires memebers to try to keep a fiscal order. If you have high debts, then get it under control. The US has no such limitation.
So countries like Greece, Spain, Italy get slammed while the savers of Europe, such as Germany scream they must get their lons repaid.
The result is a currency at odds with itself. If countries like Greece had their own currency, they would print more money - answering to no one - and continue on their merry way. Their currency would likey trend lower vs German currency. The local Greeks would be appeased and not rioting. However, rest assured, german exports would be too expensive for most greeks and not buy german products.
So one side benefit of the Euro is to ensure everyone keeps currency relatively flat to each other. This DRAMATICALLY favors the sellers and puts the debtors at great disadvantage.
Niral Firage has a nice speech about recent step being done. Announcing to the world taking money from EVERYONE's savings as a tax, over-night, no wardning. The message is: dont keep money in banks, keep them in mattresses.
It is stuff like this that WILL create a crisis, and assets keep value, some like gold may explode up.
People still don't get it. Printing money doesn't cause currency problems, faith in the stability of the finance does. And what message does it send to announce taking people who have money to pay off some of other people's debt......
It is not a true fiat currency. A true fiat currency can be printed, at will, for whatever reason. Need more cash, just issue more!
The euro requires memebers to try to keep a fiscal order. If you have high debts, then get it under control. The US has no such limitation.
So countries like Greece, Spain, Italy get slammed while the savers of Europe, such as Germany scream they must get their lons repaid.
The result is a currency at odds with itself. If countries like Greece had their own currency, they would print more money - answering to no one - and continue on their merry way. Their currency would likey trend lower vs German currency. The local Greeks would be appeased and not rioting. However, rest assured, german exports would be too expensive for most greeks and not buy german products.
So one side benefit of the Euro is to ensure everyone keeps currency relatively flat to each other. This DRAMATICALLY favors the sellers and puts the debtors at great disadvantage.
Niral Firage has a nice speech about recent step being done. Announcing to the world taking money from EVERYONE's savings as a tax, over-night, no wardning. The message is: dont keep money in banks, keep them in mattresses.
It is stuff like this that WILL create a crisis, and assets keep value, some like gold may explode up.
People still don't get it. Printing money doesn't cause currency problems, faith in the stability of the finance does. And what message does it send to announce taking people who have money to pay off some of other people's debt......
Sunday, October 14, 2012
Nigel Farage and the Fall of Europe
I have posted on Nigel Farage before, a shrewd politician who speaks directly on the weakness of European Financial positions.
This interview is a good one on Nigel. My only hesitation with Mr. Farage is I am unsure of what his long term objectives are. The stereo typical politician panders to the fundraisers, explaining why Nigel stands out so much. A good watch none the less. at 25 minutes in, a good commentary from Jamie Diamond and purchase of Bear Sterns with Government encouragement.
In Europe news, Greece unemployment 25% and climbing, French Economy taking a hard turn down, Spanish bonds being dumped abroad, and European union secession support gains in Belgium.
This interview is a good one on Nigel. My only hesitation with Mr. Farage is I am unsure of what his long term objectives are. The stereo typical politician panders to the fundraisers, explaining why Nigel stands out so much. A good watch none the less. at 25 minutes in, a good commentary from Jamie Diamond and purchase of Bear Sterns with Government encouragement.
In Europe news, Greece unemployment 25% and climbing, French Economy taking a hard turn down, Spanish bonds being dumped abroad, and European union secession support gains in Belgium.
Wednesday, June 13, 2012
Pending European Union Failure
The European Union in it's current state was doom to fail the moment it was created for one simple reason.
The Euro which it is based on, is NOT a fiat currency. It is a fiat currency tied to economic shackles on countries. I say shackles for countries like Greece could simply print more money to pay their debts. Granted, their currency would devalue, and their interest rates to borrow abroad rise. But that would be the 'gentle' and to force Greece to improve their economic imbalances. One way that would happen is in a currency devaluation is to NOT increase the salaries and payments to bankrupt social services.
They would in effect re-balance their budget through currency debasement. Granted it is a very ugly way to do so. The right way would to get some adults in the room and balance a budget. But since that is no longer possible, then currency debasement is next way to get there.
Spain, Greece, Ireland, Portugal, and others are all insolvent, unable to keep their debt ratio in line to belong to the Euro currency PEG.
A great rant by Nigel Farage once again about the reality and pending failure of the Euro. There is an out, give up on balanced budgets and print print print. But Germany in effect will be looted, the question is, are the German citizens going to allow it to happen?
The Euro which it is based on, is NOT a fiat currency. It is a fiat currency tied to economic shackles on countries. I say shackles for countries like Greece could simply print more money to pay their debts. Granted, their currency would devalue, and their interest rates to borrow abroad rise. But that would be the 'gentle' and to force Greece to improve their economic imbalances. One way that would happen is in a currency devaluation is to NOT increase the salaries and payments to bankrupt social services.
They would in effect re-balance their budget through currency debasement. Granted it is a very ugly way to do so. The right way would to get some adults in the room and balance a budget. But since that is no longer possible, then currency debasement is next way to get there.
Spain, Greece, Ireland, Portugal, and others are all insolvent, unable to keep their debt ratio in line to belong to the Euro currency PEG.
A great rant by Nigel Farage once again about the reality and pending failure of the Euro. There is an out, give up on balanced budgets and print print print. But Germany in effect will be looted, the question is, are the German citizens going to allow it to happen?
Friday, October 21, 2011
Greece, Spain, Portugal, Italy, Ireland
Greece, Spain, Portugal, Italy, Ireland are at risk of outright failure, unless Germany backs all their debt. Time will tell. Some nice video debate. Nigel Farage is my European Parliament hero.
Subscribe to:
Posts (Atom)