All P.I.G.S. fed and ready to fly

Jonril said:
1. It stops lying about it monies having any worth when the money is only backed by the promise of paying back it's current debt with future tax receipts.

2. It creates a new currency backed by bonds in real stuff like gold/silver/barley/rye/wheat or whatever that country can produce (steal from it's public) of value that other countries might consider worth forgiving debt for.

3. It uses the old legal tender notes as wallpaper for insulation.

4. It starts the whole ponzi scheme again when everyone forgets how bad the last one was.
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"Interesting" times ahead then ?
 
jaycee said:
"Interesting" times ahead then ?
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You'll have to excuse me, I was just being melodramatic on a public forum. Personally I'm hoping the major economies would not let their currencies hyper inflate. I'm hoping things in global economy "stabalise" and return to "normal" if not in the short term at least sometime in the future.

In my opinion we as individuals have little power over macro-economic forces. The best we can do is be optimistic about our own personal book and concentrate on MYOB'ing, so that we can stock up on fat in the good times for the lean times, that MAY lay ahead.
 
Intrinsic_Value said:
Make an entry in your diary for 2012.
If markets calm down from here, this cause be catalyst for turbulence in 2012.
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IV
I agree this issue will come back in 2012 but depending on when the Greek debt matures, a % of it would have been converted to EU or IMF debt or even ECB debt so market turbulance shouldn't be very high.

Unless ofcourse any the other med club countries run into trouble but IMO this is unlikely.
Now that the ECB is in the game they'll start the printing press just like the Americans are doing and they'll let the EURO slide so things will turn around.

IMO Europe is in better shape than the US who let a big chunk of their manufacturing go to China
 
BV said:
IV
I agree this issue will come back in 2012 but depending on when the Greek debt matures, a % of it would have been converted to EU or IMF debt or even ECB debt so market turbulance shouldn't be very high.

Unless ofcourse any the other med club countries run into trouble but IMO this is unlikely.
Now that the ECB is in the game they'll start the printing press just like the Americans are doing and they'll let the EURO slide so things will turn around.

IMO Europe is in better shape than the US who let a big chunk of their manufacturing go to China
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i look at it from the a game strategy point of view.
Greece cant restructure or default at the present point in time for two reasons:
(a) the global fear factor is too high, a default now would send panick through other nations. So it is in the best interest of other nations to step in.
(b) Greece is currently running a primary structural deficit. The governments revenue is insufficient to pay for its outgoings (not even including its interest cost of debt). A default now would couse massive instability.

According to the article anyway, by 2012 if the austerity measures kick in, Greece will no longer be running a primary structural deficit. ie at this point in time government receipts should be sufficient to pay government expenditure (not including interest cost on debt).
When this occurs its much easier for Greece to default/restructure the debt, regardless of who 'owns' the debt or when it matures.
 
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