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Post by theman on Nov 9, 2011 17:21:23 GMT -8
With today's unraveling of the governments in Italy and Greece, and their inability to manage their debts and come up with an austerity plan that the European Union would accept, todays proposed solution by Germany and France, reminds me of the NCAA and the then new BCS.
Follow me on this:
The Euro-zone is made up of countries similar to the NCAA being made up of colleges. Money got spread to thin so in the Euro-zone today Chancellor Merkel and President Sarkozy propose having a smaller Euro-zone made up of the financially strong countries and boot out the other Countries that are having debt problems. Similar to what happened to the NCAA when the BCS was formed to benefit the most financially sound colleges.
Similarly to back then, the President of the European Union, President Barroso issues a stern warning about what a bad idea that is, but will be unable to do anything about it.
Italy, Greece and Portugal are about to become: NON AQ status or D-II
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Post by The Great Aztec Joe on Nov 10, 2011 9:48:43 GMT -8
There is a fundamental error in your post and that is that Merkel is working to keep Greece and the other debt loaded countries in the European Union.
I think she is wrong in that regard. Germany is strong enough to go it alone in Europe.
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Post by The Great Aztec Joe on Nov 10, 2011 9:55:15 GMT -8
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Post by theman on Nov 10, 2011 17:41:00 GMT -8
There is a fundamental error in your post and that is that Merkel is working to keep Greece and the other debt loaded countries in the European Union. I think she is wrong in that regard. Germany is strong enough to go it alone in Europe. I'll stick by my post. Bloomberg's quotes are different than Reuters. Additionally, both France and Germany's debt is AAA rated (unlike the USA) and they could easily go it alone, but so could, surprisingly Italy, whose debt has been downgraded several times, but whose Finances are still in a Surplus NOT a Deficit. Albeit, the surplus is declining. The major stumbling block to the exit of Germany from the Euro is that the German mark's value would soar and kill an economy that is built on exporting high value goods to the USA and other affluent countries. In that respect, that decline in the Euro helps them like the manipulation by China of the yuan helps China's exports. |
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Post by The Great Aztec Joe on Nov 10, 2011 20:51:45 GMT -8
There is a fundamental error in your post and that is that Merkel is working to keep Greece and the other debt loaded countries in the European Union. I think she is wrong in that regard. Germany is strong enough to go it alone in Europe. I'll stick by my post. Bloomberg's quotes are different than Reuters. Additionally, both France and Germany's debt is AAA rated (unlike the USA) and they could easily go it alone, but so could, surprisingly Italy, whose debt has been downgraded several times, but whose Finances are still in a Surplus NOT a Deficit. Albeit, the surplus is declining. The major stumbling block to the exit of Germany from the Euro is that the German mark's value would soar and kill an economy that is built on exporting high value goods to the USA and other affluent countries. In that respect, that decline in the Euro helps them like the manipulation by China of the yuan helps China's exports. I agree with most of your post with only minor qualifications. The only item that is needed to put France into the red is a sharp decline in AirBus orders. Since those damn things like to fall out of the sky, France could be in trouble any day now. I do not like French Cars, and I expect that is a common feeling all around the world. Italy with their higher birth rate in the south if finding that their national IQ is falling and with it the productivity of their population. (The further south you go in Italy the lower the IQ.) The south of Italy is a heavy social burden that is rapidly increasing. Spain and Portugal are offering their peasants too many social benefits that they, like the Greeks can not afford to fund. What's it going to be Social Programs or Bankruptcy? Not a popular decision when the people have been told that once they were in the EU, they could afford the generous social burdens, because Germany would be adding to their net national income. |
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Post by aztecwin on Nov 15, 2011 18:44:17 GMT -8
There is a fundamental error in your post and that is that Merkel is working to keep Greece and the other debt loaded countries in the European Union. I think she is wrong in that regard. Germany is strong enough to go it alone in Europe. I'll stick by my post. Bloomberg's quotes are different than Reuters. Additionally, both France and Germany's debt is AAA rated (unlike the USA) and they could easily go it alone, but so could, surprisingly Italy, whose debt has been downgraded several times, but whose Finances are still in a Surplus NOT a Deficit. Albeit, the surplus is declining. The major stumbling block to the exit of Germany from the Euro is that the German mark's value would soar and kill an economy that is built on exporting high value goods to the USA and other affluent countries. In that respect, that decline in the Euro helps them like the manipulation by China of the yuan helps China's exports. When you think that Germany is so interdependent with the rest of the EU, you see how they got sucked into the position they are in. |
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