Very good article on the situation on the BBC website. Helped me understand it anyway.
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Italy.....
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Posted 6 months ago #
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only worth $140bn or so.
debt is around $2tn ish I gather.
Posted 6 months ago # -
Can't they sell some of their huge stockpile of gold rather than get money from Euro partners?
The Italian state has assets.....property, land, state owned business and cash and gold reserves.
But they owe 120% of GDP. Imagine every single business transaction, every Gucci handbag made, every meal in a cafe, every wage paid. Add them up over the course of a year and multiply that number by 1.2..... Thats how much they owe.
Posted 6 months ago # -
So Binners, a bit like the US or the UK then? you get areas of wealth and areas of poverty in all currency zones.
Only difference with the Euro is that there is more than one government involved. But then look at the US each state has some tax raising powers.
Posted 6 months ago # -
But then look at the US each state has some tax raising powers.
but there is still a big difference in the prosperity of those states...
Posted 6 months ago # -
Obviously they have to borrow money from the banks. Do banks really have more money than countries?
Do the banks not think that putting up the interest rates will cause huge problems. Why can't they just be nice and charge say 2%? Is it feasible that the governments of the world could dictate terms or are the banks running the world?
Can we declare war on the banks?Posted 6 months ago # -
Why can't they just be nice and charge say 2%? Is it feasible that the governments of the world could dictate terms or are the banks running the world?
Can we declare war on the banks?I can recommend an excellent book to help fill in the numerous and obvious gaps in your understanding of financial matters if you like?
Posted 6 months ago # -
It isnt the banks, its investors running scared because they are starting to understand that Italy might not be able to pay back all their debts. So investors (pension funds, sovereign wealth funds ie other countries like Japan, China, Norway) sell and the market price goes down and the yield goes up.
It all comes down to this. Everyone has to live within their means.
Posted 6 months ago # -
cc TJ will you Stoner.
Posted 6 months ago # -
Ive already mentioned it to him, not sure he's bought it yet. I have lost three copies myself lending them to others
Posted 6 months ago # -
Does it have a chapter "McBoo and all like him are evil b4stards who are wrong about everything 'cause they only read the right-wing press and don't do what TJ TELLS THEM IS TRUE!"?
no? He wont read it then.
Posted 6 months ago # -
Does it have a chapter "McBoo and all like him are evil b4stards who are wrong about everything 'cause they only read the right-wing press and don't do what TJ TELLS THEM IS TRUE!"?
Weesht yersel down laddie.
The problem with the Euro project was the bending of the rules to allow certain countries to participate - Greece was an obvious beneficiary of this. There's a school of thought that suggests that the best thing Greece (and possibly Italy) could do now is pull an Argentina, default and take the pain for a few years.
Posted 6 months ago # -
mcboo - the issue is you allow your obvious hatred to colour your opinions - and there is a huge amount of "what you want must be true in your position".
If the euro is such a failure then why does no country want to leave it?
It really is a rather nasty xenophobic bugger my neighbour world view you espouse
Posted 6 months ago # -
the best thing Greece (and possibly Italy) could do now is pull an Argentina
couldnt agree more....for them.
going to be a car crash for everyone else though.
Posted 6 months ago # -
No hatred here, only love.
I want everyone to be happy and I want our biggest trading partners to be rich and stable.
For 10, 20yrs people like you have been shouting XENOPHOBE at anyone who thought that the Euro was a bad idea. Time for you to hush.
Posted 6 months ago #
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