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	<title>Comments on: Betting on the unthinkable in the euro zone</title>
	<atom:link href="http://blogs.reuters.com/great-debate/2009/01/16/betting-on-the-unthinkable-in-the-euro-zone/feed" rel="self" type="application/rss+xml" />
	<link>http://blogs.reuters.com/great-debate/2009/01/16/betting-on-the-unthinkable-in-the-euro-zone/</link>
	<description>Just another blogs.reuters.com weblog</description>
	<pubDate>Sat, 28 Nov 2009 06:40:31 +0000</pubDate>
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		<title>By: Reuters - The unthinkable&#8230; - Ellada.co.uk</title>
		<link>http://blogs.reuters.com/great-debate/2009/01/16/betting-on-the-unthinkable-in-the-euro-zone/#comment-5732</link>
		<dc:creator>Reuters - The unthinkable&#8230; - Ellada.co.uk</dc:creator>
		<pubDate>Wed, 21 Jan 2009 21:36:37 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/great-debate/?p=1307#comment-5732</guid>
		<description>[...] http://blogs.reuters.com/great-debate/2009/01/16/betting-on-the-unthinkable-in-the-euro-zone/ [...]</description>
		<content:encoded><![CDATA[<p>[...] <a href="http://blogs.reuters.com/great-debate/2009/01/16/betting-on-the-unthinkable-in-the-euro-zone/" rel="nofollow">http://blogs.reuters.com/great-debate/20 09/01/16/betting-on-the-unthinkable-in-t he-euro-zone/</a> [...]</p>
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		<title>By: Dorking Boy</title>
		<link>http://blogs.reuters.com/great-debate/2009/01/16/betting-on-the-unthinkable-in-the-euro-zone/#comment-5699</link>
		<dc:creator>Dorking Boy</dc:creator>
		<pubDate>Wed, 21 Jan 2009 11:21:25 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/great-debate/?p=1307#comment-5699</guid>
		<description>The US will obviously wish to protect the dollar. The main query over the Euro is NOT as one commenter put it -the UK - it is in fact the Irish Republic and Greece who  are discussing withdrawal.

The Germans will wish to protect their car industry - especially as the build quality is dipping for VW, Audi and M-B - the UK is in trouble becuase "Financial Services" the main export suffers from demand and integrity issues. This is a long way from being solved.</description>
		<content:encoded><![CDATA[<p>The US will obviously wish to protect the dollar. The main query over the Euro is NOT as one commenter put it -the UK - it is in fact the Irish Republic and Greece who  are discussing withdrawal.</p>
<p>The Germans will wish to protect their car industry - especially as the build quality is dipping for VW, Audi and M-B - the UK is in trouble becuase &#8220;Financial Services&#8221; the main export suffers from demand and integrity issues. This is a long way from being solved.</p>
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		<title>By: Quintin</title>
		<link>http://blogs.reuters.com/great-debate/2009/01/16/betting-on-the-unthinkable-in-the-euro-zone/#comment-5540</link>
		<dc:creator>Quintin</dc:creator>
		<pubDate>Mon, 19 Jan 2009 18:47:43 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/great-debate/?p=1307#comment-5540</guid>
		<description>Considering Standard &#38; Poor's contribution to our current plight, I've cut their "rating ability" rating to "haven't got a clue".</description>
		<content:encoded><![CDATA[<p>Considering Standard &amp; Poor&#8217;s contribution to our current plight, I&#8217;ve cut their &#8220;rating ability&#8221; rating to &#8220;haven&#8217;t got a clue&#8221;.</p>
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		<title>By: Al Baloushi</title>
		<link>http://blogs.reuters.com/great-debate/2009/01/16/betting-on-the-unthinkable-in-the-euro-zone/#comment-5515</link>
		<dc:creator>Al Baloushi</dc:creator>
		<pubDate>Mon, 19 Jan 2009 07:57:02 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/great-debate/?p=1307#comment-5515</guid>
		<description>When thing go too artificial or over valued, this kind of situation is emerge. The lust of more money in every country and people brought us to the today's economical disaster. Different nations and different finanacials institutes giving many different reasons for this happening, but it is sure, it happended because of lust of money.</description>
		<content:encoded><![CDATA[<p>When thing go too artificial or over valued, this kind of situation is emerge. The lust of more money in every country and people brought us to the today&#8217;s economical disaster. Different nations and different finanacials institutes giving many different reasons for this happening, but it is sure, it happended because of lust of money.</p>
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		<title>By: Jerone</title>
		<link>http://blogs.reuters.com/great-debate/2009/01/16/betting-on-the-unthinkable-in-the-euro-zone/#comment-5440</link>
		<dc:creator>Jerone</dc:creator>
		<pubDate>Sun, 18 Jan 2009 06:49:24 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/great-debate/?p=1307#comment-5440</guid>
		<description>This comment is born out of fear!!

The US worst nightmare is when foreign lenders come to the conclusion that financing the US FIRE-economy ponzi scheme will lead to they're money beeing wiped out and start moving money away from the US.
The fact of the matter is that the FIRE economy is dead!
The stanch is overwealming. Only because the FED is kicking the corps, it appears to be still alive.
The US is very well aware of this and in order to find greater fools to further finance the US ability to roll over it's debt it is essential that foreigners are scared away from investing anywhere else except the US.

For instance the Eurozone, which is targeted in this comment.</description>
		<content:encoded><![CDATA[<p>This comment is born out of fear!!</p>
<p>The US worst nightmare is when foreign lenders come to the conclusion that financing the US FIRE-economy ponzi scheme will lead to they&#8217;re money beeing wiped out and start moving money away from the US.<br />
The fact of the matter is that the FIRE economy is dead!<br />
The stanch is overwealming. Only because the FED is kicking the corps, it appears to be still alive.<br />
The US is very well aware of this and in order to find greater fools to further finance the US ability to roll over it&#8217;s debt it is essential that foreigners are scared away from investing anywhere else except the US.</p>
<p>For instance the Eurozone, which is targeted in this comment.</p>
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		<title>By: richard</title>
		<link>http://blogs.reuters.com/great-debate/2009/01/16/betting-on-the-unthinkable-in-the-euro-zone/#comment-5436</link>
		<dc:creator>richard</dc:creator>
		<pubDate>Sun, 18 Jan 2009 02:46:16 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/great-debate/?p=1307#comment-5436</guid>
		<description>"they didn't gorge."  Like heck.  They gorged on humongous government which allocates resources just as poorly if not worse than genius american consumers.</description>
		<content:encoded><![CDATA[<p>&#8220;they didn&#8217;t gorge.&#8221;  Like heck.  They gorged on humongous government which allocates resources just as poorly if not worse than genius american consumers.</p>
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		<title>By: matt</title>
		<link>http://blogs.reuters.com/great-debate/2009/01/16/betting-on-the-unthinkable-in-the-euro-zone/#comment-5433</link>
		<dc:creator>matt</dc:creator>
		<pubDate>Sun, 18 Jan 2009 01:37:36 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/great-debate/?p=1307#comment-5433</guid>
		<description>the introduction of the Euro caused inflation to skyrocket, now one expect the same when gettting out of the Eurozone?? Talking about getting screwed in both holes.</description>
		<content:encoded><![CDATA[<p>the introduction of the Euro caused inflation to skyrocket, now one expect the same when gettting out of the Eurozone?? Talking about getting screwed in both holes.</p>
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		<title>By: derek</title>
		<link>http://blogs.reuters.com/great-debate/2009/01/16/betting-on-the-unthinkable-in-the-euro-zone/#comment-5431</link>
		<dc:creator>derek</dc:creator>
		<pubDate>Sun, 18 Jan 2009 01:30:02 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/great-debate/?p=1307#comment-5431</guid>
		<description>Wouldnt  matter.  If the Euro went and Countries went back to their old currencies.  Wouldnt  matter. So long as you have Countries.  Think about it. Same if you had One World Currency.  So long as you have Countries you get PROBLEMS.</description>
		<content:encoded><![CDATA[<p>Wouldnt  matter.  If the Euro went and Countries went back to their old currencies.  Wouldnt  matter. So long as you have Countries.  Think about it. Same if you had One World Currency.  So long as you have Countries you get PROBLEMS.</p>
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		<title>By: Daniel</title>
		<link>http://blogs.reuters.com/great-debate/2009/01/16/betting-on-the-unthinkable-in-the-euro-zone/#comment-5423</link>
		<dc:creator>Daniel</dc:creator>
		<pubDate>Sat, 17 Jan 2009 22:07:20 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/great-debate/?p=1307#comment-5423</guid>
		<description>The irony in all this is of course.. that the only people really having this discussion about a break-up of the eurozone are eurosceptic brits looking for a justification to keep the Pound and secretly hoping for the Euro they always reviled so much to fail. 

For any of the economically weak countries in the Euro, leaving would bear such a huge economic cost that it would make any of the advantages of having their own currency pale in significance. The leap from 'there are higher credit spreads on Greek government bonds than on German ones' to 'people are betting that the eurozone is going to break up' is frankly silly. There are also different credit spreads on different regional governments and government agencies in the US - does that mean people are thinking the USD zone is going to break apart? It is simply a reflection of those entities' different financial situations .. unlike the US and UK governments, individual eurozone countries don't have the option to monetize their debt to keep them from default, because they have no direct control over the ECB, so there are real differences in default risk among EU countries - although others members would likely step in to help, if anyone got close to that.

And as for the economically strong countries that could actually leave without causing themselves huge issues, there is zero political will for leaving - they are wielding the power after all. The only thing that could make them consider leaving would be, if the Euro devalued strongly due to the economically weaker countries and gave them the accompanying inflation and other soft currency issues, but that's not very likely to happen with the ECB being quite hawkish and everyone seemingly steering towards a deflationary recession.</description>
		<content:encoded><![CDATA[<p>The irony in all this is of course.. that the only people really having this discussion about a break-up of the eurozone are eurosceptic brits looking for a justification to keep the Pound and secretly hoping for the Euro they always reviled so much to fail. </p>
<p>For any of the economically weak countries in the Euro, leaving would bear such a huge economic cost that it would make any of the advantages of having their own currency pale in significance. The leap from &#8216;there are higher credit spreads on Greek government bonds than on German ones&#8217; to &#8216;people are betting that the eurozone is going to break up&#8217; is frankly silly. There are also different credit spreads on different regional governments and government agencies in the US - does that mean people are thinking the USD zone is going to break apart? It is simply a reflection of those entities&#8217; different financial situations .. unlike the US and UK governments, individual eurozone countries don&#8217;t have the option to monetize their debt to keep them from default, because they have no direct control over the ECB, so there are real differences in default risk among EU countries - although others members would likely step in to help, if anyone got close to that.</p>
<p>And as for the economically strong countries that could actually leave without causing themselves huge issues, there is zero political will for leaving - they are wielding the power after all. The only thing that could make them consider leaving would be, if the Euro devalued strongly due to the economically weaker countries and gave them the accompanying inflation and other soft currency issues, but that&#8217;s not very likely to happen with the ECB being quite hawkish and everyone seemingly steering towards a deflationary recession.</p>
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		<title>By: Ken</title>
		<link>http://blogs.reuters.com/great-debate/2009/01/16/betting-on-the-unthinkable-in-the-euro-zone/#comment-5422</link>
		<dc:creator>Ken</dc:creator>
		<pubDate>Sat, 17 Jan 2009 21:43:40 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/great-debate/?p=1307#comment-5422</guid>
		<description>We wish Europe the best.  We hope to rebuild our (U.S.) manufacturing so we have something to trade.  We will probably resort to tariffs until our products improve.  Demand is weak because we have 2 or 3 of everything we need and our income is now at risk.  So we will hunker down, yardsale, fixup, and grow gardens to get by.  We need to stop the party and get back to work.</description>
		<content:encoded><![CDATA[<p>We wish Europe the best.  We hope to rebuild our (U.S.) manufacturing so we have something to trade.  We will probably resort to tariffs until our products improve.  Demand is weak because we have 2 or 3 of everything we need and our income is now at risk.  So we will hunker down, yardsale, fixup, and grow gardens to get by.  We need to stop the party and get back to work.</p>
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