Is the E.U. on the Brink?

[Beingist]

So, lately, we've seen Greece, Ireland, Portugal, Spain, and now Italy (the E.U.'s 3rd largest economy) suffer from debt issues. Greece's Papandreau has resigned, as has Italy's Berlusconi. The bankers have moved in to run those respective countries. Spain appears to be next to see their own debt bubble. Moody's is talking about downgrading France for all their talk about bailouts. Britain is talking about how great they are for not submitting to the Euro, though Germany is telling them "yeah, but you still have to help".

So, the question, and this thread, goes out from this debt-laden American to my European friends--what in the world is going on over there? Is Europe on the brink, or what?

[Peterw]

It's a big nasty complicated mess. A bunch of countries have maxed out their credit and can't afford the repayments. Bankruptcy isn't an option as the banks that they owe the money to will collapse causing a worse crisis than we had in 2008.

[Beingist]

Originally Posted by Peterw

It's a big nasty complicated mess. A bunch of countries have maxed out their credit and can't afford the repayments. Bankruptcy isn't an option as the banks that they owe the money to will collapse causing a worse crisis than we had in 2008.

Are you over there, Peter, or do you have a good line as to some specifics?

[Peterw]

Originally Posted by Beingist

Are you over there, Peter, or do you have a good line as to some specifics?

I'm in the UK so kind of yes and no. The news is changing every day and the markets are absolutely crazy.

Right now it looks like Italy/Greece are being taken over by Brussels and Germany are pulling most of the strings. Germany and the UK are locking horns over this financial transaction tax thing and everyone here is screaming to get out of the EU but our politicians won't let us vote on it.

It's a tough situation when you have one country with little debt and a very good economy and work ethic having to bail out others where they have huge corruption, a very uncompetitve economy and a very slow way of life.

The whole thing is one massive rolloercoaster at the moment and I hope they can get themselves organised soon but that is a huge project in itself which should have really been done at the beginning.

This is quite a good timeline of the crisis:

BBC News - Timeline: The unfolding eurozone crisis

I think we could all do without another really bad recession..

[Beingist]

Originally Posted by Peterw

I'm in the UK so kind of yes and no. The news is changing every day and the markets are absolutely crazy.

Right now it looks like Italy/Greece are being taken over by Brussels and Germany are pulling most of the strings. Germany and the UK are locking horns over this financial transaction tax thing and everyone here is screaming to get out of the EU but our politicians won't let us vote on it.

It's a tough situation when you have one country with little debt and a very good economy and work ethic having to bail out others where they have huge corruption, a very uncompetitve economy and a very slow way of life.

The whole thing is one massive rolloercoaster at the moment and I hope they can get themselves organised soon but that is a huge project in itself which should have really been done at the beginning.

This is quite a good timeline of the crisis:

BBC News - Timeline: The unfolding eurozone crisis

I think we could all do without another really bad recession..

Thanks for the update and for the link.

I'm often looked at askew around here for saying stuff like this, but I still think it's all due to the venture into printed currency. Bankers are still greedy, and no one benefits from such a venture as they do. Now, they're finally running the show, as no doubt they'd prefer. The problem is, so much greed and concentrated wealth can only lead to inflation and devaluation and, as is currently seen, debt bubbles made insurmountable through monetization.

I know the world doesn't need any more economic difficulties. It's just that I don't see how it can be avoided, as long as the bankers continue to just keep printing money.

[SnerpGoodWord]

The Eurozone crisis demonstrates the abject failure that is centralized hard money policy. When you have a a run on cash like this, you must be able to increase the money supply to get things moving again. The Euro is effectively designed so that can't be done due to political paralysis, and as a result the're about to experience a 19th century style bank panic. At this point it seems inevitable that most if not all of the PIIGS will leave the Euro, and that Europe will end up in recession.

Which once again demonstrates the comparative wisdom of US monetary policy.

[Acting Like Godot]

Umm ... basically you don't really understand any of this stuff.

Originally Posted by Beingist

It's just that I don't see how it can be avoided, as long as the bankers continue to just keep printing money.

Bankers don't print money. That would be illegal, in exactly the same way that it is illegal for you to print money using Photoshop and your colour printer at home.

Governments print money.