France, Germany support slashing of EU budget

As I just read, the next crise of the euro is coming soon. They predict the lose of trust in euro by speculators at the beginning of January and a collapse type of state of the EU.
(Joe, 19 December 2010 14:56

Well,the whole idea of creating a single monetary unit — the euro — on the shaky foundation of 16 different governments, each taxing and spending at their own whim, let alone the different levels of wages and competiteveness in each country ,was insane from Day One.As a result,the euro enterprise has created a number of anomalies:
Wildly different financial positions for the countries within the monetary union —southern ones on the brink of bankruptcy, northen still solvent.No freedom for individual countries to determine the value of their currencies independently- as the Anglo-Saxon countries have been doing.Extreme vulnerability to any economic downturn — and the danger that the union could collapse under economic or financial stress.Grave political turmoil and public unrest.

As long as easy credit was available those anomalies were camouflaged because the economies on the southern EU members were stll growing.But the financial crunch of 2008 brought all those problems to the fore creating a sovereign
debt crisis.

EU's strategy for handling the spreading sovereign debt crisis is nothing more than a great poker bluff with a weak hand.They put $1 trillion on the table, thinking they'd impress global speculators. They didn't.Now they are doubling the amount available to deal with the bailouts to $2 trillion expecting the bluff to be more successful this time.The response of global speculators were to reduce Ireland's rating to junk status.

Speculators know that EU is scared. And they attack with one simple weapon: Their ability to the currency and the country's government bonds at any time and in any amount of their choosing.ECB cannot spend all its foreign reserves supporting its own currency.At some point
the central bank will fold its hand, abandon its defense of the currency, and enact a major devaluation.

But for the European Union, the bet is so large and the cards so weak, the end game could be even more Draconian: A breakup of the euro altogether.

But the euro problem isn't just a Europe problem. It's a problem for everyone. World economies are highly interconnected. Speculators could be caught on the wrong side of another Lehman-type event.

"Now if one considers the stated reason poor countries joined the EU and the Euro in the first place was to gain economic advantage why should they stay in a club where the benefits are reduced
constantly over the years."
Leonidas

Good question. Also the string of successive crises will continue. As I just read, the next crise of the euro is coming soon. They predict the lose of trust in euro by speculators at the beginning of January and a collapse type of state of the EU.

British Prime Minister David Cameron has confirmed he has won France and Germany’s support to cap the European Union’s budget.

B92

Indeed. Cameron has been going on about the state of Europe'e finances which makes it necessary for EUs budget to be frozen.However,the budget proposals coming from the British,the French and the Germans indicate that there will be actually a real reduction in the budget taking into consideration the inflation rates within the EU.The overall plan also envisages freezing the EU budget for the next 10 years.

Cameron,of course,forgets how the world has arrived at this mess.It was Thacher and her friend Reagan that decided to deregulate the markets and "set them free" as they used to say. And the whiz kids of the City of London and Wall Street with their dodgy property and derivative deals have been having the time of their lives, feathering their nests, for the past 30 years. And now the West is broke they want us to continue paying them bonuses by getting more debt on our shoulders.

Now if one considers the stated reason poor countries joined the EU and the Euro in the first place was to gain economic advantage why should they stay in a club where the benefits are reduced
constantly over the years.

The British and Americans are against the Euro. There are always articles about the collapse of the Euro in the British and American press.
(Mircea EU citizen, 19 December 2010 15:54

You're right this time.Since the US $ has been given its last rites from China,Russia and Brazil the Americans are glamouring for the demise of the euro
so european countries can start trading again in US $ instead euros snd the Americans will continue to print endlessly to finance their deficits and therefore exporting US inflation to those countries and make them share the costs of $ devaluation.

On the other hand,the brits are still semi-detached members of the EU because they've got nowhere else to go and they know they can only manifest any influence they have left through the club.The don't regard themselves as european and they've got zero affinity with eorope.When the EU train crashes i am certain the brits will be the first at
the exit door.

As I just read, the next crise of the euro is coming soon."

Where did you read this? In the British or American press? If so, I don't think you should pay attention to the British and American "experts".

The British and Americans are against the Euro. There are always articles about the collapse of the Euro in the British and American press.
Mircea EU citizen

I read it on the German site www.welt.de....here is the link http://www.welt.de/politik/ausland/article11711238/Die-naechste-Krise-des-Euro-kommt-schon-bald.html
I am just wondering why it was suppressed by b92 the first time around when I included the Germain title "Die nachste Krise des Euro kommt bald" and the translation "The next crise of the euro is comming soon"). Maybe because this morning this was front news and later on not visible. B92 thought that maybe I invented it.
As you can see this is not coming from some evil British or American experts who want to destroy the euro but from Germans.
This reminds me of the ex Sovetunion. They always scolded the Anglo-American imperialists, who "wanted to destroy" the "camp of paeace" (the Eastern block). The funny thing that that "camp" imploded from the inside, no outside sources were necessary. That will be the same with the EU.
But don't wary. Romania will still make it. Germany will still need your agricultural products. Also your currency will be competitive with other countries.

"Since the US $ has been given its last rites from China,Russia and Brazil"

It depends who is giving the last rire. Friends, rivals or enemies. Russa was always an enemy and fairly negligable economicaly (less for the Europeans who needs her gas.
I would love to suddanly receive few millions from those dollars with last rite.

The Brits "don't regard themselves as european and they've got zero affinity with eorope.When the EU train crashes i am certain the brits will be the first at
the exit door.
Leonidas

You are right and I don't blame the Brites. Rushing to the exit will be the right thing.

Joe wrote:

"As I just read, the next crise of the euro is coming soon."

Where did you read this? In the British or American press? If so, I don't think you should pay attention to the British and American "experts".

The British and Americans are against the Euro. There are always articles about the collapse of the Euro in the British and American press.

Joe wrote:

"As I just read, the next crise of the euro is coming soon."

Where did you read this? In the British or American press? If so, I don't think you should pay attention to the British and American "experts".

The British and Americans are against the Euro. There are always articles about the collapse of the Euro in the British and American press.

As I just read, the next crise of the euro is coming soon. They predict the lose of trust in euro by speculators at the beginning of January and a collapse type of state of the EU.
(Joe, 19 December 2010 14:56

Well,the whole idea of creating a single monetary unit — the euro — on the shaky foundation of 16 different governments, each taxing and spending at their own whim, let alone the different levels of wages and competiteveness in each country ,was insane from Day One.As a result,the euro enterprise has created a number of anomalies:
Wildly different financial positions for the countries within the monetary union —southern ones on the brink of bankruptcy, northen still solvent.No freedom for individual countries to determine the value of their currencies independently- as the Anglo-Saxon countries have been doing.Extreme vulnerability to any economic downturn — and the danger that the union could collapse under economic or financial stress.Grave political turmoil and public unrest.

As long as easy credit was available those anomalies were camouflaged because the economies on the southern EU members were stll growing.But the financial crunch of 2008 brought all those problems to the fore creating a sovereign
debt crisis.

EU's strategy for handling the spreading sovereign debt crisis is nothing more than a great poker bluff with a weak hand.They put $1 trillion on the table, thinking they'd impress global speculators. They didn't.Now they are doubling the amount available to deal with the bailouts to $2 trillion expecting the bluff to be more successful this time.The response of global speculators were to reduce Ireland's rating to junk status.

Speculators know that EU is scared. And they attack with one simple weapon: Their ability to the currency and the country's government bonds at any time and in any amount of their choosing.ECB cannot spend all its foreign reserves supporting its own currency.At some point
the central bank will fold its hand, abandon its defense of the currency, and enact a major devaluation.

But for the European Union, the bet is so large and the cards so weak, the end game could be even more Draconian: A breakup of the euro altogether.

But the euro problem isn't just a Europe problem. It's a problem for everyone. World economies are highly interconnected. Speculators could be caught on the wrong side of another Lehman-type event.

As I just read, the next crise of the euro is coming soon."

Where did you read this? In the British or American press? If so, I don't think you should pay attention to the British and American "experts".

The British and Americans are against the Euro. There are always articles about the collapse of the Euro in the British and American press.
Mircea EU citizen

I read it on the German site www.welt.de....here is the link http://www.welt.de/politik/ausland/article11711238/Die-naechste-Krise-des-Euro-kommt-schon-bald.html
I am just wondering why it was suppressed by b92 the first time around when I included the Germain title "Die nachste Krise des Euro kommt bald" and the translation "The next crise of the euro is comming soon"). Maybe because this morning this was front news and later on not visible. B92 thought that maybe I invented it.
As you can see this is not coming from some evil British or American experts who want to destroy the euro but from Germans.
This reminds me of the ex Sovetunion. They always scolded the Anglo-American imperialists, who "wanted to destroy" the "camp of paeace" (the Eastern block). The funny thing that that "camp" imploded from the inside, no outside sources were necessary. That will be the same with the EU.
But don't wary. Romania will still make it. Germany will still need your agricultural products. Also your currency will be competitive with other countries.

"Now if one considers the stated reason poor countries joined the EU and the Euro in the first place was to gain economic advantage why should they stay in a club where the benefits are reduced
constantly over the years."
Leonidas

Good question. Also the string of successive crises will continue. As I just read, the next crise of the euro is coming soon. They predict the lose of trust in euro by speculators at the beginning of January and a collapse type of state of the EU.

British Prime Minister David Cameron has confirmed he has won France and Germany’s support to cap the European Union’s budget.

B92

Indeed. Cameron has been going on about the state of Europe'e finances which makes it necessary for EUs budget to be frozen.However,the budget proposals coming from the British,the French and the Germans indicate that there will be actually a real reduction in the budget taking into consideration the inflation rates within the EU.The overall plan also envisages freezing the EU budget for the next 10 years.

Cameron,of course,forgets how the world has arrived at this mess.It was Thacher and her friend Reagan that decided to deregulate the markets and "set them free" as they used to say. And the whiz kids of the City of London and Wall Street with their dodgy property and derivative deals have been having the time of their lives, feathering their nests, for the past 30 years. And now the West is broke they want us to continue paying them bonuses by getting more debt on our shoulders.

Now if one considers the stated reason poor countries joined the EU and the Euro in the first place was to gain economic advantage why should they stay in a club where the benefits are reduced
constantly over the years.

The British and Americans are against the Euro. There are always articles about the collapse of the Euro in the British and American press.
(Mircea EU citizen, 19 December 2010 15:54

You're right this time.Since the US $ has been given its last rites from China,Russia and Brazil the Americans are glamouring for the demise of the euro
so european countries can start trading again in US $ instead euros snd the Americans will continue to print endlessly to finance their deficits and therefore exporting US inflation to those countries and make them share the costs of $ devaluation.

On the other hand,the brits are still semi-detached members of the EU because they've got nowhere else to go and they know they can only manifest any influence they have left through the club.The don't regard themselves as european and they've got zero affinity with eorope.When the EU train crashes i am certain the brits will be the first at
the exit door.

"Since the US $ has been given its last rites from China,Russia and Brazil"

It depends who is giving the last rire. Friends, rivals or enemies. Russa was always an enemy and fairly negligable economicaly (less for the Europeans who needs her gas.
I would love to suddanly receive few millions from those dollars with last rite.

The Brits "don't regard themselves as european and they've got zero affinity with eorope.When the EU train crashes i am certain the brits will be the first at
the exit door.
Leonidas

You are right and I don't blame the Brites. Rushing to the exit will be the right thing.