The British PM in PANIC

[Mega]

http://www.telegraph.co.uk/news/worl...nresolved.html

"They" have told him that the UK is F*cked, totally.
The Debt is unservicable, tax returns are off the cliff & Northsea oil/Gas is just whatever dregs are left. The "City" is just a fraud scam that the EU is in FULL attack mode on...........in short things are going to get very bad,very soon.



Personaly am delighted, just hope we get collaspe of the £ & +£2.00 a litre fuel & 7% rates.

Mike

[Mega]

Re: The British PM in PANIC

Ah!
http://www.bbc.co.uk/news/uk-politics-15611429
£40 Billion of "Fiat" that is

[GRG55]

Re: The British PM in PANIC

LOL...

"...David Cameron has said the UK will give more to the IMF, but the money must not support a eurozone bailout. Labour said the IMF could not be a substitute for the European Central Bank "recognising its responsibility"..."

That last bit seems like a clear message to Draghi to forget about "learning German", and start placing bulk orders for paper and ink with the ECB's approved suppliers :-)

Seems all they are arguing about is how much each of the Central Banks is going to print. The universal message to Europe from the rest of the G20 seems to have been "Yes we will print, but we are going to do it to monetize our own overindebtedness, not yours"

[Mega]

Re: The British PM in PANIC

They try to just keep it on a balance sheet not allow it to grow the money surply..........but i suspect there will come a monment when the Dam bursts...........high to hyper inflation.
Mike

[jk]

Re: The British PM in PANIC

germany's position is interesting. they have their well known aversion to printing and inflation, but otoh they are losing their biggest export markets with the periphery in recession, leading to a german slowdown. [the germans will be the biggest beneficiaries of a weaker euro.] draghi and the ecb have already shown that they see that slowdown. i guess the question re draghi et al is whether their 25bps rate cut was just more of the same - running ecb policy based on the needs of the german economy - or a recognition of a wider need for ease. the difference will be shown in how far draghi goes.

[GRG55]

Re: The British PM in PANIC

germany's position is interesting. they have their well known aversion to printing and inflation, but otoh they are losing their biggest export markets with the periphery in recession, leading to a german slowdown. [the germans will be the biggest beneficiaries of a weaker euro.] draghi and the ecb have already shown that they see that slowdown. i guess the question re draghi et al is whether their 25bps rate cut was just more of the same - running ecb policy based on the needs of the german economy - or a recognition of a wider need for ease. the difference will be shown in how far draghi goes.

A decade ago, when the German economy was subject to deflationary pressures from policy errors related to the reunification of East and West, the ECB kept the cost of credit in Europe very cheap to aid Germany. There were some who warned that ECB monetary policy was allowing too much inflation in the overheated periphery economies such as Ireland, Spain and, later, some of the East European nations. While property prices in Germany were in a gentle but steady multi-year decline, cheap credit fueled speculation drove prices to obviously unsustainable levels in many of the periphery countries.

Then the ECB was politically constrained from acting to tighten policy until the German economy recovered. Now it seems it has the same issue in reverse. History may not repeat, but the current choir seems to be keeping good harmony with the past [so far]...the ECB will ease when Germany needs it [giving the ECB the political cover it needs to do so], and not before.

I am intrigued by the question you pose. How do you see measuring "the difference" in how far Draghi goes? What is the line that separates ECB actions meeting only the needs of the German economy vs actions meeting the wider need to ease?

[jk]

Re: The British PM in PANIC

I am intrigued by the question you pose. How do you see measuring "the difference" in how far Draghi goes? What is the line that separates ECB actions meeting only the needs of the German economy vs actions meeting the wider need to ease?

whether the ecb pushes far enough to produce some inflation in germany to offset the debt deflation in the periphery. and, btw, that would be wonderful for german exporters.

[GRG55]

Re: The British PM in PANIC

whether the ecb pushes far enough to produce some inflation in germany to offset the debt deflation in the periphery. and, btw, that would be wonderful for german exporters.

It would seem they already have [although the deflationary pressures as Germany rolls over can't be dismissed lightly]:

[oddlots]

Re: The British PM in PANIC

One of the great ironies to me of the crisis is the almost constant reference to Weimar. It strikes me that a far more apt historical parallel is to Germany being saddled with unpayable war reparations and slowly coming apart as a society... Certainly to date that seems far more to the point - obviously, re. Greece - but no-one seems inclined to recall this history...