The Eurozone is stabilising

McDave

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After recent suggestions that contagion was about to spread to Spain, the FT reports that Spain's most recent bond auction has been successful. The Euro is currently trading around $1.23.

I have no doubt there are going to be fluctuations in fortunes over the coming months. However, even if PIGS continue to weigh heavily on the Eurozone, I think measures to stabilise the single currency are slowly bearing fruit. In which case attention will turn to other currencies residing in overexposed economies (esp. dollar and sterling). I also think it's becoming clear that there is a sizeable and stable economy behind the Eurozone, and that political will to guarantee the Euro and its component members has not wavered. I think it is also becoming clear that Germany's tough line on Greece is also paying dividends, as it has helped create an environment for real-world compliance. Speculators will, of course, continue their attempts to create an air of instability. However, as PIGS continue to play ball the prospects for speculative gains will diminish, and I expect the Eurozone crisis to drop slowly off the agenda.

For those who can access FT.com: FT.com / FT's rolling global market overview - Spanish bond auction success boosts euro
 


DCon

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stabilising like this?



A group of Italian economists would beg to differ with your reasoning

The Telegraph's Ambrose Evans-Pritchard points to a letter signed by 100 Italian economists (technically Keynesianites, but in the great Ponzi, the two have become synonymous) in which they note that "the austerity strategy imposed by Brussels/Frankfurt risks tipping Europe into a self-feeding downward spiral. Far from holding the eurozone together, it will cause weaker countries to be catapulted out of EMU.
100 Italian Economists Wake Up, Say Austerity Will Destroy Europe | zero hedge
 

McDave

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100 Italian Economists Wake Up, Say Austerity Will Destroy Europe
Ambrose Evans-Pritchard droning on in the Torygraph again? Maybe the 100 Italian economists should stop hiding under their blankets and quit pretending the various bubbles that have afflicted the Anglo-Saxon and PIGS countries never happened.

As for your funnee graph, I'd say Telegraph sales have a far greater chance of flatlining than the Eurozone.
 

locke

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I hate threads like this.

I'd been thinking the same thing myself, but as soon as someone posts a thread up, it's normally a sign of an increase in volatility
 

NotoriousFin

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I think you need to watch the following:
[ame=http://www.youtube.com/watch?v=qBiZi2WQhZg]YouTube - World Collapse Explained[/ame]
 

McDave

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I think you need to watch the following
Seen it before. Is that really the best you can do?

Really, P.ie is overpopulated by cynics, conspiracy theorists and cassandras who can't get though the day without their dose of impending doom and catastrophe.

Not to mention the Eurosceptic agenda monkeys!
 

McDave

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You would have avoided the charge of cheerleading, at least from me, if you'd just mentioned in passing that it's not all rosy in the eurogarden.
Well then, you clearly didn't even bother to closely read the OP where I said "I have no doubt there are going to be fluctuations in fortunes over the coming months". Implicit in this statement is a recognition that there are problems and that these will from time to time spook decision-makers until the matter is IMO resolved.

I'd have to say that my OP was rather temperate. But so far almost all it has elicited is over-confident pseudo-know-it-all jibes and japes. Absolutely no consideration of the points raised! However, I don't suppose I should expect balanced or respectful discussion on a topic which habitually brings out P.ie's full panopticon of blinkered Eurosceptics.

Meanwhile in the real world, EU policy-makers continue to take small steps to stabilise conditions in the weaker Eurozone members. I don't say for a minute all is rosy. How could we be at this pass if it were? But, at least I recognise that the Eurozone is taking constructive, positive action. While hurlers on the ditch snigger to each other with trite graphs and puerile video clips. But who's really paying attention to them anymore anyway?
 

Squire Allworthy

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You would have avoided the charge of cheerleading, at least from me, if you'd just mentioned in passing that it's not all rosy in the eurogarden.

It is not all rosy, not by a long mark, but I feel mood is changing even if ever so slowly. By now we all have a fair measure of the problems and the magnitude.
 

NotoriousFin

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Seen it before. Is that really the best you can do?

Really, P.ie is overpopulated by cynics, conspiracy theorists and cassandras who can't get though the day without their dose of impending doom and catastrophe.

Not to mention the Eurosceptic agenda monkeys!
There's a difference between being a cynic and somebody who understood economics.

I thought that was a nice dumbed down message to get the point across.
But honestly, just increase the money supply does not solve the problem, in fact it'll make it worse. In fact, the market has lost a lot of faith in the euro. Over inflating the supply of fiat money will make this worse.
 

McDave

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But honestly, just increase the money supply does not solve the problem, in fact it'll make it worse. In fact, the market has lost a lot of faith in the euro.
IMO, the markets fundamentally recognise the strengths that exist in the EU and US economies. There are problems too, and speculators are playing the percentages with the weak links - PIGS, esp. Greece. But IMO this is panning out to be a temporary problem. The EU economy is too big to fail. And IMO EU politics is showing itself to be quite capable of dealing with the political blowback from the weaker economies and polities.
 

SilverSpurs

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After recent suggestions that contagion was about to spread to Spain, the FT reports that Spain's most recent bond auction has been successful. The Euro is currently trading around $1.23.

I have no doubt there are going to be fluctuations in fortunes over the coming months. However, even if PIGS continue to weigh heavily on the Eurozone, I think measures to stabilise the single currency are slowly bearing fruit. In which case attention will turn to other currencies residing in overexposed economies (esp. dollar and sterling). I also think it's becoming clear that there is a sizeable and stable economy behind the Eurozone, and that political will to guarantee the Euro and its component members has not wavered. I think it is also becoming clear that Germany's tough line on Greece is also paying dividends, as it has helped create an environment for real-world compliance. Speculators will, of course, continue their attempts to create an air of instability. However, as PIGS continue to play ball the prospects for speculative gains will diminish, and I expect the Eurozone crisis to drop slowly off the agenda.

For those who can access FT.com: FT.com / FT's rolling global market overview - Spanish bond auction success boosts euro
Once again mcdave you offer us the most platitudinous waffle to avoid the cold hard facts. Spanish debt has been getting more expensive as has ours. There is only so much easy money available and even that offers breathing room. A leaner and meaner euro is inevitable.
Funny how you glibly dismiss the 'torygraph' yet link the ft which can just as easily be dismissed as an eu and euro cheerleader. Ask the ft about all those articles down the years saying the uk 'couldnt afford' to stay out of the euro.
 

Cassandra Syndrome

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Mmmm, should I listen to a blindly obsessive Europhile McDave ranting like an insane losing general in his bunker during the final days of war or should I listen to.....

Marc Faber, publisher of the Gloom, Boom & Doom report, says "the euro will remain weak, and there'll be more bailouts. They'll all default or they'll all print money but the outcome won't be pretty, that I assure you".
I think I know where I would rather park my money with.

PS - That Spanish bond auction today had the highest yield for the year and thats despite the safety net of the ECB.

Dream away Walter Mitty! The EU is toast!
 

Cassandra Syndrome

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Once again mcdave you offer us the most platitudinous waffle to avoid the cold hard facts. Spanish debt has been getting more expensive as has ours. There is only so much easy money available and even that offers breathing room. A leaner and meaner euro is inevitable.
Funny how you glibly dismiss the 'torygraph' yet link the ft which can just as easily be dismissed as an eu and euro cheerleader. Ask the ft about all those articles down the years saying the uk 'couldnt afford' to stay out of the euro.
+1

Maybe we should advise him to read the number one bestseller on Amazon.com at the moment. That could teach him something and maybe stop these tacit knowledge lectures in self gratification mullarkey.
 

McDave

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Once again mcdave you offer us the most platitudinous waffle to avoid the cold hard facts. Spanish debt has been getting more expensive as has ours. There is only so much easy money available and even that offers breathing room. A leaner and meaner euro is inevitable.
Funny how you glibly dismiss the 'torygraph' yet link the ft which can just as easily be dismissed as an eu and euro cheerleader. Ask the ft about all those articles down the years saying the uk 'couldnt afford' to stay out of the euro.
To coin a famous phrase SilverSpurs, "You're entitled to your own cold hard opinions, but you're not entitled to your own cold hard facts". Plenty of "cold hard facts" have been marshalled on both sides of the argument. In fact, the relentless stream of disambiguated 'factlets" extrapolated into doomsday scenarios has been one of the more irritating postures adopted on P.ie throughout the currency crisis. At this stage, there is IMO little perspective to be gained by homing in on isolated developments (like every shaving of half a cent off the value of the Euro represents some kind of disaster). Hence my attempt to take an overview in the OP.

For sure, the FT (like the CBI and a few other outliers) has adopted positions on Britain's position in the EU that don't marry well with the wider feeling of Euroscepticism in the UK. But the Telegraph does little else on Europe than magnify that cosy Tory consensus about the continentals, their funny little bananas and their evil little ways. I'll at least give the FT some credit for not being a one-dimensional anti-EU cheerleader like practically every other media outlet in the UK.

Similarly, on P.ie the preponderance of posters with views on the EU is of the distinctly Eurosceptic variety. So I wouldn't get too snippy if I were you about the occasional pro-EU poster (like myself) who ventures onto this site. Pro-EU posters have to deal with hordes anti-EU "cheerleaders" as a matter of course.
 

Cassandra Syndrome

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And as for that pile of toilet paper crap in our pockets, it has fallen to a record low against a proper Gold back currency the Swiss Franc



Other fiat currencies may be falling faster at the minute including the dollar, it still boils down to the fact that a barrel of oil is 62 to 64 Euro a barrel the highest its been since the brief spike to 80 Euro back in mid 2008.

Gold hit its record today and is ready to take off.

Fiat currency is coming to an end. Good riddance to it. Its only purpose was to fund global wars.
 

Cassandra Syndrome

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Pro-EU posters have to deal with hordes anti-EU "cheerleaders" as a matter of course.
Ah, God help youse. In case you haven't noticed, your lot call the shots in determing the social choice (tyranny) for all of us. So if you can't handle a few restless natives who have had enough of this technocracy, then I am sure there are a myriad of pro EU forums out there.
 


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