Greece crisis: What now for the euro project?

Discussion in 'Europe' started by Ringel05, Jun 24, 2011.

  1. Ringel05
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    Ringel05 Diamond Member

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    The single European currency is facing its biggest crisis since it was launched more than a decade ago.

    The severe debt problems facing one of its members, Greece, has intensified the debate about the future of the euro, which binds together 17 members with some very different economic policies.

    Will it survive, and if it does, what changes might have to be made to the currency pact?

    While interest rates are set at a European level, taxes and spending are decided nationally.

    Some have called for tough action by governments to make member economies more alike - so-called convergence.

    Others say that eventually the eurozone will need to resemble more closely the US, with richer countries sometimes paying the bills of poorer ones through fiscal transfers.

    BBC News - Greece crisis: What now for the euro project?
     
  2. Granny
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    Granny Gold Member

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    And some people want one big happy world where everything and everybody is happy and equal in all aspects? Countries, people, customs are different - as they should be. If they can't manage to have one big happy financial system, why do people think one ruling body will work for the entire world?

    The richer countries should support the poorer countries? There would be no incentive for the poorer countries to work toward creation of a better economy if they knew the richer countries would constantly bail them out.

    History doesn't appear to be a very good teacher ... or maybe it's just that the students from one generation to the next aren't paying attention in class.
     
  3. martybegan
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    martybegan Gold Member

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    The fatal flaw in the euro is the seperation of who prints the money and who decides how much money to spend. A government that controls its own currency can just start the presses. While this causes inflation and ruins the buying power of both the people and the government, it allows the government to meet its debt obligations.

    When someone else controls the mint, you cant get out of overspending in the old way, and you actually can default. Granted hyperinflation is effectively default, but in an economically "safe" way.
     
  4. Colin
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    Colin Gold Member

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    The fatal flaw with the euro is that it was implemented for political reasons rather than financial ones. Trying to introduce a one-cap-fits-all monetary system to several countries at widely differing stages of economic development was always going to produce problems. Having only one interest rate was not sensible when dealing with a diverse range of economies and economic circumstances Financial experts constantly sounded warnings during the run up to monetary union, but the EU mandarins were not listening. Monetary union was their means to achieve deeper political integration of Europe and nothing was going to stop them.

    Europe has tried monetary union before. It didn't work then and it won't work now. At least we in Britain had the good sense to stay out of it.
     
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  5. Colin
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    Colin Gold Member

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    Greece is in the trouble it is because it is a nation of cheats, frauds and lazy bastards! Most cheat on their tax returns. They earn over-inflated wages for a short day's work and they expect to retire at 50 on a pension that is 95% of their final year's salary! Now the country is bankrupt and the public are rioting because they don't agree with the austerity measures needed to pull the country out of trouble. Well. FUCK the Greeks! Let the over-bloated lazy slugs go to the wall. Let them live in the real world!

    http://www.mailonsunday.co.uk/news/...lture-greed-tax-evasion-scandalous-waste.html
     
  6. Ropey
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    Ropey To Life! Gold Supporting Member Supporting Member

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    They extended themselves far too much.
     
  7. Colin
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    Colin Gold Member

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    The wailing wall in Jerusalem

    [​IMG]


    The wailing wall in Greece

    [​IMG]
     
  8. Ropey
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    Ropey To Life! Gold Supporting Member Supporting Member

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    ROFLMAO

    +2 x for that little one.

    :rofl: :rofl: :rofl:

    [​IMG]
     
  9. iamwhatiseem
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    iamwhatiseem Gold Member

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    It is not the Greek people who will be bailed out by you and I.
    Rather, it is the corrupt and irresponsible European banks who loaned the Greek government it's money on bloated interest rates that they got very wealthy off of.
    And, just like in America, the banks will get your money just as sure as it is taken out of your pay check. The American government, one way or another, through one obscure channel or another - we will bail out the European banks....again.
    And that is going to happen regardless if Obama is President or not, regardless of what party controls either house.
     
  10. Colin
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    Colin Gold Member

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    A Greek man went to his bank manager and said: ‘I’d like to start a small business.
    How do I go about it?’

    ‘Simple,’ said the bank manager. ‘Buy a big one and wait.’
     

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