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Eurozone finances: Pouring oil on water

Published: 04 April, 2012, 17:12


(AFP Photo / Getty Images)

If eurozone countries do not make necessary steps to restructure their debts, the current period of calm, may quite be calm before the storm.

 
9 COMMENTS
Analysis April 04, 2012, 17:53 quote
+1

What the public is not told is ECB has finally committed itself to follow the liquidity programs of the US by issuing more money also known as printing money. We know that sky is the limit in printing dollar until people become educated and refuse to keep their savings in printed worthless papers. Under the new plan of printing money the individual EU members can be rescued but at the price of a long-term collapse of EU that may occur with the US dollar collapse. Both, the US and EU are on the same course with exchange of their problems in their intercourse, which ensures a common time of currency collapse with a major impact on other economies. In that sense, IMF is correct by not predicting a rosy future.

A REALITY CHECK FOR RT April 04, 2012, 18:21 quote
-1

The EU has already organised an emergency bailout fund MUCH LARGER than the entire debt. So even in worst case senario the countries with debt will become debt free and therefore very strong again.

WHY does every article RT writes ignore this fundamental reality?

Europe is IN GROWTH whilst the USA and UK are CONTRACTING!

Then There is the rise of the BRIC nations who all want to trade with the EU and not America and UK! (For obvious reasons)

China alone has enough money to buy most of europe if the chance arived too!

 

THESE SIMPLE FACTS ALONE MAKE EUROPES PROSPECTS LOOK VERY GOOD IN THE SHORT AND LONG TERM.

 

Nothing RT can say can despute these FACTS.

Be my guest April 04, 2012, 19:35 quote
0

A REALITY CHECK FOR RT wrote in #2:

The EU has already organised an emergency bailout fund MUCH LARGER than the entire debt. So even in worst case senario the countries with debt will become debt free and therefore very strong again.

WHY does every article RT writes ignore this fundamental reality?

 

Europe is IN GROWTH whilst the USA and UK are CONTRACTING!

 

ANSWER: Because the ECB fund is based on issuing money as in the US printing of dollars then based on what you say EU has to follow the path of USA and UK in CONTRACTING. 

 

A REALITY CHECK FOR RT wrote in #2:

Then There is the rise of the BRIC nations who all want to trade with the EU and not America and UK! (For obvious reasons)

China alone has enough money to buy most of europe if the chance arived too!

 

ANSWER: Yes, but BRIC, including China have their own terms and conditions for lending that has not been agreed upon by the EU members until now. What makes you think that if EU improves it would agree to the BRIC's terms? 

 

A REALITY CHECK FOR RT wrote in #2:

THESE SIMPLE FACTS ALONE MAKE EUROPES PROSPECTS LOOK VERY GOOD IN THE SHORT AND LONG TERM.

 

ANSWER: Nice dream! But, one should not ride on a conclusion based on the explained flawed foundation.

 

A REALITY CHECK FOR RT wrote in #2:

Nothing RT can say can despute these FACTS.

 

ANSWER: True, but I am not RT.


Contracting? April 04, 2012, 20:02 quote
0

The political and economic people here are about the dumbest people I have met.

realist (unregistered) April 04, 2012, 22:13 quote
+3

"The EU has already organised an emergency bailout fund MUCH LARGER than the entire debt. So even in worst case senario the countries with debt will become debt free and therefore very strong again."

lol that's the dummest thing i heard this week..
The country's with debt? Do u even know how the economy works?
Every country has debts, its interconnected..
A triljoen euro bailout wouldn't even cover greeks debt alone (they already got like a triljoen euro off bailouts..), and u are talking about every country in europe (because all have debts..)..
Here's reality;
The problems with Greek and Ireland are containeble, at the cost of inflation. For example; 1 bread will then cost 1.10,- insteadd of 1,-/ thats inflation, perfect exemple of this is usa/dollar..
Spain and Italy for example are to big for bailouts, when they get into problems its byebye euro..
About the usa, they already have mass inflation because of printing money (qe1/qe2..) but the biggest problem they face is deflation because the dollar is the world currency and it's losing that status.. then 1 bread cost 10 dollar instedd of 1 (or worse)..

Now let's discuss the real problem in the west.., JOBS..
With all this printing, it really is no solution, its called kicking the ball further (buying time), instedd of bailing stuff out, they should invest in jobs..
U know spain has the highest unemployment of the hole eu? And now every country have unemployment problems? Thats the problem.. Mainly because of free trade/cheap labor in other country's..
The ball will stop rolling when inflation get's to high and people can't pay there stuff anymore, that's were it will crash eventually..

now i'am done ranting..

EUROZONE EXPERIMENT SET TO FAIL April 04, 2012, 22:48 quote
+19

Everybody knows that the GS boys are just spinning their wheels to squeeze more money from the public (socialised debt). Playing for time and maximum exploitation. Retail investors have fled the markets and the Euro currency. Nobody is stupid enough to actually believe there's a recovery or rescue going on. It's all about the banksters and the banks, as always. The global economy is running on its final fumes. Control is so illusory.

Phil (unregistered) April 05, 2012, 00:29 quote
+8

The leaders in Europe know the EU cannot be saved, it is death by a thousand cuts. What they are doing is using the time to re-arrange their debts and if Germany is unable to see a way through this mess the government will leave the EU. They are printing money, breaking the rules of the EU but it is now 'every man for himself'' The time has to be right for Merkel, Sarkozy and Obama and to the 'fires of hell' for all the other leaders and their people. Soon it will collapse and we will all feel the effect, there is no easy way.

realist (unregistered) April 05, 2012, 01:12 quote
+4

ur saying the same thing as me only in other words..
i only have 1 side-notes with that,
Its not all about the banksters, the biggest company's are in control to, remember bilderberg? (shell and other oil company's are company's too and they made the hole recession records high profits..)

btw usa is printing money now for like 10+ years or the dollar would already be ded 3x.., but yes the ecb just recently started printing..
Printing money has nothing to do with every man for himself as it gives inflation for every country, this is usally done as a desparate last resort..
Remember when 1 country in the eu falls its gonna be a big domino effect.
Also germany/france leaving the euro is no option or they would have already (not only those 2 btw, dutch/sweden and 1-2 more are stable enougf too),
the same day they leave the euro a big civil (even militairy) war will start..

about control, usa (and therefor the navo as a hole? but not sure about that) is getting itself ready for a crash, almost everything is in place, you would be blind to not see this..
Look what happened in the last great depression.., or rome in the old days.., i hope i'm wrong but history tend to repeat itself and this is what most people dont get.. (i don't blame them because when thinking like that all hope is gone..)
 

Wibble April 05, 2012, 16:24 quote
0

Shouldn't it be water on hot oil ?

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