Comments on: Euro zone crisis may be close to resolution http://blogs.reuters.com/breakingviews/2011/01/29/euro-zone-crisis-may-be-close-to-resolution/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Stigmata http://blogs.reuters.com/breakingviews/2011/01/29/euro-zone-crisis-may-be-close-to-resolution/comment-page-1/#comment-6221 Wed, 02 Feb 2011 09:18:45 +0000 http://blogs.reuters.com/columns/?p=5212#comment-6221 The Eurozone crisis is not close to resolution. All the maneuverings of the Euro Elite amount to nothing more than a putting off of the inevitable.

They are all so shell-shocked by the true scale of the problem they can’t seem to acknowledge, grasp or comprehend it.

Irelands population is just under 4.5 million. As of June 2010, there were only 1,859,500 in paid employment. If Ireland has to avail itself of the full 85 billion Euro bailout, that amounts to a debt of €45,711 for every person in paid employment.

That amount has to be extracted via taxation, and that is in addition to the amount of taxation the government already collects in the normal course of events. Add to that the taxes needed to fund the interest burden on the 85 billion. At 6% that’s another 5.1 Billion PA.

The average salary appears to be about €36,955.

Sure businesses pay tax too, but i think you would have to regard that as fixed income because any meaningful rise in corporate tax rates would lead to an exodus of firms to eastern Europe.

Capital is fleeing the Irish banking system at the rate of €40 Billioin a month and people are emigrating at the rate of 40,000 pa.

Welcome to la-la-land where six impossible things must be believed before breakfast.

It’s like a big ticking bomb waiting to go off. The Euro Elite are all cunningly forming themselves into a neat line abreast, with the bomb at their backs quietly ticking away. Some of them are staring skywards, whistling nervously, some are chatting to each other importantly, all of them are hoping that the world can’t see past them at what is behind their backs.

Tick, tick, tick…

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By: pavlaki http://blogs.reuters.com/breakingviews/2011/01/29/euro-zone-crisis-may-be-close-to-resolution/comment-page-1/#comment-6165 Sat, 29 Jan 2011 10:01:24 +0000 http://blogs.reuters.com/columns/?p=5212#comment-6165 Fixing the debt helps but how are they going to make Greece, Portugal, Ireland and Spain competitive? Greece and Ireland ramped up their prices during the ‘good’ years to a level that has caused a fall in tourism and agriculture, which are major foreign currency earners. Portugal’s economy was flat in the good years and Spain still has third world levels of unemployment. Debts are only the symptoms – not the disease. Unless something is done to boost their economies (traditionally devaluation) then I fear that their problems will not go away.

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