Magic thinking in Europe - Solving the EU debt problem.

[IainB]

THE EUROPEAN BAILOUT EXPLAINED
Brilliant, concise, spot-on commentary.

[joiwind]

Thanks Iain - I've just posted the link on the Occupy Wall Street Forum ...

[johnk]

Good fun, thanks for the link. I've been boring everyone I know, telling them that the Euro disaster is potentially the greatest crisis since the second world war. Everyone, understandably, ignores me and continues drinking their beer. I'm an optimist by nature, but the world is sleepwalking into an economic earthquake. Very, very scary...

[tomos]

China arent sounding too positive about the idea either
(sorry no links - heard some quotes on the radio today).

[IainB]

Everyone, understandably, ignores me and continues drinking their beer.

Yum. Beer.

[rgdot]

Since the whole system is based on some form of magic (dividends, futures, forecasts) why would this be any different?

[IainB]

Since the whole system is based on some form of magic (dividends, futures, forecasts) why would this be any different?

+1 from me.       

[johnk]

Since the whole system is based on some form of magic (dividends, futures, forecasts) why would this be any different?

Because this time, there is no way out. They can't fudge it. The Euro will break up, either in a controlled way, or an implosion. Either way, the effect on the world will be pretty horrible. Not just the economic side of things, which will be bad for most countries and devastating for others, but serious social unrest is very likely, and historically, that leads to growing popularity for extreme political movements, armed conflict...

This isn't fantasy. The only reason the Euro hasn't broken up yet is that Germany is holding it together. And the only reason Germany is holding it together is that Merkel is clever enough to realise that, whatever way the cards fall, Germany is screwed. So she's putting off the inevitable for as long as possible.

[rgdot]

^ We were told the same (accounting for differences in time and place) before the US based bailout of 2008/09. The only implosion possible is of the system - so-called capitalism - itself.  As far as some measures causing social unrest that may be inevitable whether or not this magic materializes or not. Already headed to a time when it's a fight between "entitlements" vs. "reduced government".

Besides it is in the interest of all those supplying (China perhaps in this case) to accommodate so actually that implosion might not even happen or be postponed for a few generations.

[Renegade]

Everyone, understandably, ignores me and continues drinking their beer.

Yum. Beer.

+24 for me~!