Euro Zone Financial Crisis

[melinx]

I don't understand why Europe's finance ministers have to agonise over the 'cure' for the debt problems of various countries when the answer is staring them in the face

Why don't they just do a bit of 'Quantitative Easing' like the UK did ?

Just print hundreds of Billions of euros and give it to the countries with massive debts, zero growth and rising unemployment.

After all, It worked for us didn't it 

Didn't it

[Einarrson]

Haha yes it 'worked'...

I think the only solution is to do an Iceland i.e. tell the bankers to whistle for their money, then create a new national bank which provides the money needed in order to have commerce instead of having to borrow money (promisary notes / IOUs) from the markets whilst offering bonds (more IOU's) for security.

http://www.positivemoney.org.uk/

[melinx]

A copy of something I posted 18 months ago : -

Written by the Roman writer Cicero in 55 BC.

It seems that in over 2000 years, politicians have learned nothing

"The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance."

           
 

[Tetleysmooth]

It all seemed a lot simpler when every country had its own currency.......

Now, if one falls, the dominoes start tumbling.

[Murph]

That's the crux of the problem in my opinion.

It just makes no sense (to me anyway) to expect a collection of countries with differing cultures, economies, exports incomes etc to successfully thrive under a single currency.

Before, if Greece was in trouble then the Drachma would be devalued but the rest of europe would carry on regardless.

Now Greece, Portugal, Ireland, Spain and Italy are in trouble with others on the cusp because when one falls they take the whole group along with them.

[Pedro]

Ultimately, who will bail the Euro out?

The US - no.
China - maybe.
India - maybe.
The UK - most probably. In as much as we give to the EU more than we are allowed to take.

[kevinfourlegs]

Why should we?

I seen some German dude on the news saying that the UK is not in the Euro, so why is the UK involved with it? He is right, we aren't in the Euro, so keep us noses out.

[man of kent]

I don't understand why Europe's finance ministers have to agonise over the 'cure' for the debt problems of various countries when the answer is staring them in the face

Why don't they just do a bit of 'Quantitative Easing' like the UK did ?

Just print hundreds of Billions of euros and give it to the countries with massive debts, zero growth and rising unemployment.

After all, It worked for us didn't it 

Didn't it

 It worked to get things moving they said and it didn't. The trouble with printing money is it leads to inflation so when it starts we are going to have high interest rates.

As a pensioner like many I have had to take a fixed pension from my pot and I'm loosing 3-4% every year with more to follow. Whats happens is that the EU/UK have to find the money. Either higher tax which is the real answer when you are net importer to reduce the imports or from savers. This policy is going to add to problems later as more pensioners do not have enough money and will need to ask the government.

The basic problem is that we are spending money we do not have.

The problem with the EU is simple. Monetary union which means one central government and pot of cash. Unfortunately Germany will not have this as they have been exporting heavily to the southern countries who cannot compete and have to borrow. Unless they go for monetary union the problem just gets pushed back.