Saturday, January 01, 2011

No more euro?

I am a eurosceptic. I think the EU is increasingly another bureaucracy that saps the freedom and money of the peoples of Europe. I for one will not be unhappy to see te euro and the current concept of the eu go into the dustbin of history.

In its annual list of predictions, the CEBR said a new eurozone crisis was its number one forecast for 2011, citing the hundreds of billions of euros of debt that members must replace this year.
"If the euro doesn't break up, this could be the year when it weakens substantially towards parity with the dollar," said Douglas Williams, chief executive of CEBR.
Spain and Italy alone must refinance more than €400bn (£343bn) of debt in the first half of the year, which could prove impossible given investor fears over the finances of southern European countries.

1 comment:

Anonymous said...

It's time to let these debtor nations go into default. If not, the consequences for the western economies are dire indeed. We are in a situation where there is too much debt looking to be refinanced by too few investors. This will only serve to push up bond yield rates as the panic sets in. If European bond prices start to rise it will have a cascade effect on the largest bond market: the U.S., which is already seeing a rise in treasury bill rates and is causing the U.S. central bank to buy up this debt in an effort to hold rates down, but is, in the interim, adding to U.S. total debt. Once the U.S. bond markets force rates up, hang on to your hat because we will be in for another round of sky-rocketing interest rates. Let the debtor nations go under if you want to avert a catastrophe that will make the recent recession seem like the good old days.