World Economic News (Fri 26th. Nov ’10)


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  • Richard

    I’m listening to Paddy Pantsdown on Question Time making the case that we’d have been better off then we are right now if the UK had adopted the euro, Ken Clarke is saying the euros is just a distraction because it won’t fail and it’s global banking that needs reform, and Nigel Farage is doing his bit to convince the audience the whole EU thing is a big joke. There’s also some nobody from Labour, who’s name I can’t remember, saying nothing at all. I can’t think why I’m watching this rubbish – other than National Geographic are showing a program about 9/11 conspiracy theories that I don’t care to watch.

    • Did `something` ask you if you were a tin of spam, before you could comment like~?
      That was the plan. But plans don’t always orkw tou.

      • Richard

        Nope – I didn’t see anything about spam. Did you install a WP plugin? If so it’ll probably won’t have any affect on the DISQUS comments, but will ask me when I post in the groups section. How are the stairs coming on?

        • Yep, I plugged something in.
          See how we go, eh~?

          Cold today. Two little ole’ degrees max.

  • Wvolson

    Great! Go Nigel!

  • Calle Lezzo

    1.) It is interesting to see that the State banks, like postbank in Germany and other similar to it in other countries, have actually disappeared. In the disappearance of these the reckless lending has also increased. If the state banks would have been there to counter balance the commercial banks would know that there is not any “bailouts” for them, and if there is a bankruptcy there are courts to deal with the management.

    2.) I have read through the lines that the MMT really can deal with this crisis fairly easily, as it is just a matter of paying it of by a unanimous decision, buying of all the bonds. The problem is to identify which of the bonds are fraudulently created, and how to adjust the banking so that the leakage is stopped (by leakage I mean to bundle all kinds of investment info a more or less unidentifiable package which is backed by tax payers when failing).

    3.) Putting the sorting out of mortgages on the bond holders seem to be a way for the banks to fend of the “little” guy. There are quite many examples there the banks are selling “Century Lagoon – Bonds” “Total Long Saving-Bonds”, which actually are derivative instruments. If they fail a 50% or more can be lost. The banks sell them often with an explanation that “the price may fluctuate ” and even that the “capital can be lost”, but then all the funds have those legal safety texts for the banks. In some of the cases the banks settle with the bondholder, in fear of making it a court case as there is the risk that it may be an example for the “masses”. There are often quite a lot of illegalities involved in the foreclosed homes, where the underlying property is sold to a friendly party, or just hijacked for a very very low price. Therefore an open, standard and transparent system should be used, stead for letting everybody fend for them selves.

  • Cookie Fox

    The Euro is in serious trouble, that we know, but what is the most likely way forward. I can image a few scenarios (below), but I can’t back either of them up. What do you all think?

    (a) [EXILE] The PIIGS are forced out of the Eurozone
    (b) [SABOTAGE] Germany reintroduces the mark and countries like France and the Benelux leave the Euro soon after.
    (c) [DISSOLUTION] The European Parliament decides to revert all member countries to other currencies in an orderly fashion over some years
    (d) [CRASH] The Euro crashes and burns and every country reintroduces its own currency. The PIIGS reintroduce tally sticks and brightly colored bricks as forms of payment. Van Rompuy is shot into the sun.

    • The Euro is an `All for one…..One for all` club.
      It’s basically, `All stick together`……..there is no `other` option~!

      (d) is most likely.

      • CSArichardo

        The BIS (like the US Federal Reserve/except the global central bank) will work with the IMF (like the US treasury/except global government treasury) to fix the problem if any. Wait for the introduction of a Substitiution Account where large $US dollar holders can trade them in for SDRs (a basket of currency), which we know is currently around 35% the Euro. That would create alot of Euro to help out the IMF to help out Europe. It is option e) the BIS/IMF becomes a fractional reserve bank for world government ! What world government ? We see a real movement toward the SDR as a world fiat currency. Still not sure where gold fits in this scenerio. Of course this could all be trash I am saying !

    • Calle Lezzo

      e) [DEBT EXTINCTION] EU Trash fund is established. ECB buys all EU DEBT related to real assets or a certain percentage of it. Trash fund digs out fraud through legal process.

  • James