Eurozone debt crisis

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giulio2010
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giulio2010 wrote:Already tomorrow may occur with the first effects
The farcical Monti-effect
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Iron
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How Greek GDP needs to grow for the targets to be hit: http://www.zerohedge.com/sites/default/ ... %20GDP.jpg

Piece of cake! :lol:
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superfrank
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Threat to euro overcome, says Commission President Barroso
http://www.bbc.co.uk/news/world-europe-20937505
Mr Barroso said the turning point was last September's promise from the European Central Bank to buy unlimited amounts of eurozone states' debts.
:shock:
"The credibility of a currency depends on the soundness of the institutions behind it," Mr Barroso said, adding that political union was a "necessity".
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Euler
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Amazing to see how far bond yields have fallen. The markets seem to think the worst is over.
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superfrank
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Euler wrote:Amazing to see how far bond yields have fallen. The markets seem to think the worst is over.
the fall in bond yields might normally indicate that, but it's got much more to do with the ECB committing to buy "unlimited" amounts of EZ debt which has forced down the yields. Trader's never want to oppose central bank policy (don't fight the FED, as the saying goes in the US).

good for the periphery countries in the short-term, but the bond bubble continues. without bond buying by central banks with printed money where would those yields be? i.e. if they reflected true sovereign credit risk.
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Euler
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Nice discussion on debt, bond yields, currencies and central banks.

http://www.arpinvestments.com/downloads ... 200213.pdf
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Euler
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The Good, the Bad, and the Greek (Risks)

http://www.mauldineconomics.com/images/ ... 5_TFTF.pdf
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Euler
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The Irish and Icelandic recoveries are still fastinating me: -

Anglo Irish Bank debt deal gets ECB clearance

http://www.bbc.co.uk/news/business-21361339
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Euler
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superfrank
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Euler wrote:John Mauldin: Whatever It Takes

http://www.mauldineconomics.com/images/ ... 0_TFTF.pdf
good article that, he obviously knows the score when it comes in central banks and their scheming.
If German, French, and British banks lent money to Irish banks to invest in Irish property, then they deserve the fruits of their investment prowess (or lack thereof), not a taxpayer bailout.
+1
I wrote at least three or four years ago that if you are going to keep the eurozone together, there will have to be monetization. It is going to take trillions of euros, whether they are monetized or in the form of extended debt – or however you care to characterize them – to solve this puzzle. And the only entity that has that type of money is a central bank, in this case the European Central Bank.
The ECB in conjunction with its various national banks is going to have to monetize and print (or we can call it by its polite name, “quantitative easing”) to an even greater extent than the US Fed. Along with the money gushing from the Bank of Japan and the Bank of England, there are going to be sums injected into the global system that simply cannot be comprehended. And all this easing will force developing nations to compete at the printing press.
i hope you're positioning your fortunes for inflation Euler!
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Euler
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An Infinite Amount of Money
Et Tu, Italy?
Moving, Argentina, and Sonoma

http://www.mauldineconomics.com/images/ ... 2_TFTF.pdf
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superfrank
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i'm now bored with all this debt crisis stuff because it's clear that the can will keep getting kicked down the road until something blows up (and that might be years away).

outright monetisation and helicopter drops of funny money are now being openly discussed as "solutions" and i'm sure it will all happen, along with debt jubilees and deficit funded tax cuts etc, etc.

the only guarantees now, imho, are further currency debasement and inflation.

i hope some of you took my advice to keep short of the £ :D
(viewtopic.php?f=35&t=6686&start=10#p54743)
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Euler
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I've been investing overseas more in the last few years, so UK policy has been making me money without me actually doing anything.
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superfrank
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Euler wrote:I've been investing overseas more in the last few years, so UK policy has been making me money without me actually doing anything.
i think you've got the midas touch!, seriously though "winning" a currency war is bad news for most and the performance of the £ speaks volumes about the shit the UK is in (it can't even hold its own against the Euro and $ and is totally trashed against everything else).

the problem is that, while it might look good on/in paper, those repatriated £s might buy you very little in the future.
Iron
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Looks like Italy is saying 'ciao' to austerity - http://www.bbc.co.uk/news/world-europe-22342867

Jeff
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