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The_Dunedan · 04-09-2011, 02:31 PM

Umm...no.

The problem is that various other nations in the EU, the PIIGS group being the worst of these, cooked the books in regards to their national debts, income/outlay ratios, and deficit spending: this in order to become part of the Euro zone.

The result was that, when the insolvency of their banks and inability to fund their bloated welfare systems became known, amidst the general upheval of 2007-8, panics occurred. These countries and banks, which were or soon would be insolvent and unable to service their debts, requested that solvent countries bail them out.

Imagine that you ran up hundreds of thousands of Pounds in debt on your credit-cards, took out loans based on exaggerated statements of income and lowballed statements about your debts and bills, and then when you got caught (and nobody would lend you money anymore) asked a neighbor to pay off your debts, refinance your house, and repair your credit. And -then,- when the neighbor agreed to do so on the condition that you live honestly and within your means, you pitched a tantrum, torched your car, and made an ass of yourself.

That's the position Germany finds itself in. They're on the hook for the PIIGS debt thanks to the shared currency, the Schengen Zone, etc...and they are NOT happy about it. Their banks and governments have been forced to assume a great risk, dishonestly imposed, by covering the debts of banks and governments which can't seem to stop spending other people's money. It's nothing to do with German exports. That's a tertiary issue at most. The whole Euro zone is so monetarily interconnected that Greece or Italy's unwillingness or inability to control their spending stands a good chance of destroying or substantially degrading the economies of those nations which have their shit together.

Smartest thing the UK's done in the past century was not adopting the Euro.

04-09-2011, 02:31 PM	#10 (permalink)
The_Dunedan Junkie	Umm...no. The problem is that various other nations in the EU, the PIIGS group being the worst of these, cooked the books in regards to their national debts, income/outlay ratios, and deficit spending: this in order to become part of the Euro zone. The result was that, when the insolvency of their banks and inability to fund their bloated welfare systems became known, amidst the general upheval of 2007-8, panics occurred. These countries and banks, which were or soon would be insolvent and unable to service their debts, requested that solvent countries bail them out. Imagine that you ran up hundreds of thousands of Pounds in debt on your credit-cards, took out loans based on exaggerated statements of income and lowballed statements about your debts and bills, and then when you got caught (and nobody would lend you money anymore) asked a neighbor to pay off your debts, refinance your house, and repair your credit. And -then,- when the neighbor agreed to do so on the condition that you live honestly and within your means, you pitched a tantrum, torched your car, and made an ass of yourself. That's the position Germany finds itself in. They're on the hook for the PIIGS debt thanks to the shared currency, the Schengen Zone, etc...and they are NOT happy about it. Their banks and governments have been forced to assume a great risk, dishonestly imposed, by covering the debts of banks and governments which can't seem to stop spending other people's money. It's nothing to do with German exports. That's a tertiary issue at most. The whole Euro zone is so monetarily interconnected that Greece or Italy's unwillingness or inability to control their spending stands a good chance of destroying or substantially degrading the economies of those nations which have their shit together. Smartest thing the UK's done in the past century was not adopting the Euro. __________________ "I personally think that America's interests would be well served if after or at the time these clowns begin their revolting little hate crime the local police come in and cart them off on some trumped up charges or other. It is necessary in my opinion that America makes an example of them to the world." --Strange Famous, advocating the use of falsified charges in order to shut people up.