World braces for euro split

W.G.Ewald

Defence Professionals/ DFI member of 2
Professional
Joined
Sep 28, 2011
Messages
14,139
Likes
8,568
Merkel tells Greece to back cuts or face euro exit - Telegraph
Raising the spectre of a Greek exit, the German chancellor said "solidarity for the euro" was threatened by the ongoing political crisis in Athens.

Stock markets around the world fell sharply with fears mounting that a euro break-up could lead to renewed financial turmoil. The FTSE-100 index of Britain's major companies fell by two per cent to 5465, with bank shares hit particularly hard.
 

trackwhack

Senior Member
Joined
Jul 20, 2011
Messages
3,757
Likes
2,585
China holds how much debt in Euro? I think CCP will go on a buying spree.
 

H.A.

Senior Member
Joined
Dec 24, 2011
Messages
1,445
Likes
683
:whoa:

What about the Euro? will that currency also cease to exists?

What are the consequences that India will face?
 

Daredevil

On Vacation!
Super Mod
Joined
Apr 5, 2009
Messages
11,616
Likes
5,704
Everyone will get affected if EU breaks, more so the EU countries themselves. It will take some time for countries to adjust to the new financial order of the world what with new currencies, new rules etc..
 

Blackwater

Senior Member
Joined
Jan 9, 2012
Messages
21,158
Likes
12,152
Everyone will get affected if EU breaks, more so the EU countries themselves. It will take some time for countries to adjust to the new financial order of the world what with new currencies, new rules etc..

Holland was happy and stronger during guilder times and they are happy to return to guilder again. baki Europe bard me jaye who cares
 

StarShip Enterprise

Regular Member
Joined
Sep 21, 2010
Messages
91
Likes
27
i think euro will survive and wont go bust. European ambitions and "New World Order" wont let euro down.
for immediate and near term correction : buy more gold. go solid behind US dollar.
 

H.A.

Senior Member
Joined
Dec 24, 2011
Messages
1,445
Likes
683
Greece NOT to exit.

BERLIN, MAY 15:
As Greece's political parties struggled to form a government 10 days after the inconclusive Parliamentary election, the Euro Zone finance ministers have rejected calls for the debt-ridden nation's exit from the single currency.

"It is our unshakable desire to keep Greece in the euro area. We will do everything possible to this effect," Mr Jean-Claude Juncker, Luxembourg's Prime Minister and Chairman of the 17-nation euro group said on Monday night after a meeting of the finance ministers in Brussels.

"Greece's exit from the euro was not a subject of discussion and absolutely no one argued in that direction," Mr Juncker told the press.

However, the ministers demanded that a new government in Greece must fulfil the austerity measures and reforms agreed by the former government in return for the financial bailout from the European Union and the International Monetary Fund.

"This is not the time to slacken the efforts to implement the reforms," Mr Juncker said.

Meanwhile, in Athens, President Mr Karolos Papoulias has focused his efforts to form a government of technocrats after a series of meetings with the leaders of the main political parties failed to produce an agreement to form a new government.

If this last-ditch attempt fails, Greece will be heading towards fresh elections by the middle of next month and a long period of political instability.
Business Line : Industry & Economy / Economy : Greece not exiting euro currency grouping
 

roma

NRI in Europe
Senior Member
Joined
Aug 10, 2009
Messages
3,577
Likes
2,489
Country flag
Everyone will get affected if EU breaks, more so the EU countries themselves. It will take some time for countries to adjust to the new financial order of the world what with new currencies, new rules etc..
DD im here in europe and you "might " be right ,but i sure do remember the days prior to the euro and food and commodity prices were les than half what they are now ....i mean starting from a simple coffeee int the mornings to whatever else, including purchasing a house.
 

H.A.

Senior Member
Joined
Dec 24, 2011
Messages
1,445
Likes
683
DD im here in europe and you "might " be right ,but i sure do remember the days prior to the euro and food and commodity prices were les than half what they are now ....i mean starting from a simple coffeee int the mornings to whatever else, including purchasing a house.
So you mean to say that if their is a break up of Eurozone, it is good?
 

Sakal Gharelu Ustad

Detests Jholawalas
Ambassador
Joined
Apr 28, 2012
Messages
7,116
Likes
7,727
I am surprised how people believe in such news. Euro is a very close to the heart experiment for most Europeans and they are not going to abandon it so soon. The recent discussions that were held in February further paved the way for close direction of the Euro economy. Although, there are few discontented voices in Germany as well as Greece but they are not taken seriously.

On the whole Euro provides more flexibility to the work-force as well as to the movement of goods. What they needed was more fiscal consolidation and monitoring, which they are eventually going to achieve. Greece is anyway a liability and not an asset as they have defaulted five times in the last two centuries. Their exit would strengthen the Euro but it would bring about the discussion on conditions under which nations can exit Euro. But I do not think Greece would exit soon, as they are screwed in any case. They need to work hard and stop living on their social securities.
 

panduranghari

Senior Member
Joined
Jan 2, 2012
Messages
1,790
Likes
1,249
I am surprised how people believe in such news. Euro is a very close to the heart experiment for most Europeans and they are not going to abandon it so soon. The recent discussions that were held in February further paved the way for close direction of the Euro economy. Although, there are few discontented voices in Germany as well as Greece but they are not taken seriously.

On the whole Euro provides more flexibility to the work-force as well as to the movement of goods. What they needed was more fiscal consolidation and monitoring, which they are eventually going to achieve. Greece is anyway a liability and not an asset as they have defaulted five times in the last two centuries. Their exit would strengthen the Euro but it would bring about the discussion on conditions under which nations can exit Euro. But I do not think Greece would exit soon, as they are screwed in any case. They need to work hard and stop living on their social securities.
I agree. The idea of Euro started in reality in 1922 though there was an attempt to create a more egalitarian system in 1944 at Bretton Woods which the Brits and Americans hijacked. However in 1957 with Rome Accord and then in 1992 the Mastricht treaty the Eurosystem was born and Euro came into existence on 1Jan 1999.and became a transactional currency on 1 Jan 2002.

If you can read financial statements, please read this link

ECB: 2012

Euro is the only currency in the world which has severed its link to the nation state and to Gold.

Tuesday, January 1, 2002 - Launch of euro transactional currency
Friday, February 8, 2002 - GOLD ABOVE $300
Monday, December 1, 2003 - GOLD ABOVE $400
Thursday December 1, 2005 - GOLD ABOVE $500
Monday, April 17, 2006 - GOLD ABOVE $600
Tuesday, May 9, 2006 - GOLD ABOVE $700
Friday, November 2, 2007 - GOLD ABOVE $800
Monday, January 14, 2008 - GOLD ABOVE $900
Monday, March 17, 2008 - GOLD ABOVE $1000
Monday, November 9, 2009 - GOLD ABOVE $1100
Tuesday, December 1, 2009 - GOLD ABOVE $1200
Tuesday, September 28, 2010 - GOLD ABOVE $1300
Wednesday, November 9, 2010 - GOLD ABOVE $1400
Wednesday, April 20, 2011 - GOLD ABOVE $1500
Buy as much gold as you can. But then we are Indians, we do not need to be told to buy GOLD.
 

Sakal Gharelu Ustad

Detests Jholawalas
Ambassador
Joined
Apr 28, 2012
Messages
7,116
Likes
7,727
I agree. The idea of Euro started in reality in 1922 though there was an attempt to create a more egalitarian system in 1944 at Bretton Woods which the Brits and Americans hijacked. However in 1957 with Rome Accord and then in 1992 the Mastricht treaty the Eurosystem was born and Euro came into existence on 1Jan 1999.and became a transactional currency on 1 Jan 2002.

If you can read financial statements, please read this link

ECB: 2012

Euro is the only currency in the world which has severed its link to the nation state and to Gold.



Buy as much gold as you can. But then we are Indians, we do not need to be told to buy GOLD.
Is there anything specific you want me to notice from the financial statements? All I could see were weekly statements and it is difficult to draw time series conclusions from there.
 

panduranghari

Senior Member
Joined
Jan 2, 2012
Messages
1,790
Likes
1,249
Is there anything specific you want me to notice from the financial statements? All I could see were weekly statements and it is difficult to draw time series conclusions from there.
This is what I want everyone to see about Euro and gold;



Look at the first line of the ECB consolidated financial statement. Its gold and look at this quarterly statement from 1999 to date. AND LO BEhold how gold has increased in value not quantity while the forex reserves have reduced in value but increased in quantity.
 

Sakal Gharelu Ustad

Detests Jholawalas
Ambassador
Joined
Apr 28, 2012
Messages
7,116
Likes
7,727
This is what I want everyone to see about Euro and gold;



Look at the first line of the ECB consolidated financial statement. Its gold and look at this quarterly statement from 1999 to date. AND LO BEhold how gold has increased in value not quantity while the forex reserves have reduced in value but increased in quantity.
So, ECB is using gold as a hedge rather than using $. I think it makes sense given their size.
 

panduranghari

Senior Member
Joined
Jan 2, 2012
Messages
1,790
Likes
1,249
So, ECB is using gold as a hedge rather than using $. I think it makes sense given their size.
A bit more than making sense. Gold is coming back into fashion. Not as a jewellery item nor as a gold standard. It has always denominated the wealth of nations. And now its coming back as the same. No more US dollars reserves as advertised by the government of India. But number of tons of the precious stuff.
 

Global Defence

New threads

Articles

Top