Six Weeks To SaveThe Euro ..

[letric]

World leaders were warned last night that they have six weeks to save the euro from collapse.
Chancellor's warning after another day of financial turmoil.
James Chapman

http://www.dailymail.co.uk/home/index.html

[guyguy]

Man, the fall of the Euro will have severe repercussions all over the world, especially here in America and Canada. I pray that this doesn't happen.

[oecarb]

Too much depends on the euro. The EU is the world's largest economic bloc. It is the UK's biggest trading partner. The euro is the world's No 2 reserve currency.

The Americans are blaming the euro for all the world's problems. But the EU leaders have their own view:

"I found it peculiar that even though the Americans have significantly worse fundamental data than the euro zone that they tell us what we should do and when we make a suggestion ... that they say no straight away," Maria Fekter (the Austrian Finance Minister) told reporters afterwards, recalling a difference of opinion between Geithner and German Finance Minister Wolfgang Schaeuble on how to reinvigorate the euro zone and tax financial deals.

http://www.reuters.com/article/2011/...78F09G20110916

[vaio]

gosh man letric!

http://www.dailymail.co.uk/news/arti...save-euro.html

[lexbarker]

Too much depends on the euro. The EU is the world's largest economic bloc. It is the UK's biggest trading partner. The euro is the world's No 2 reserve currency.

The Americans are blaming the euro for all the world's problems. But the EU leaders have their own view:

Carbs , it is all planned. The Euro will fall before the US dollar.

[miktay]

Unless there is a major catyclysm to distract the world...the Euro will fall.

The interest rate on 1 yr Greek gubmint notes is 100+ %. This is unsustainable.

Greece is the straw that breaks the camels back.

Spain, and Italy will follow.

Southern Euro countries have fleeced Northern European banks.

The ECB cannot bail out these countries and shore up the European banking system.

European voters will not stand for this.

American banks will suffer. They sold insurance (read: CDSs) on Greek debt to European banks.

This is similar 2 the 2008 Lehman crisis.

Except it will be worse.

[oecarb]

Carbs , it is all planned. The Euro will fall before the US dollar.

Lex, a helluva lot of countries - especially exporters and producers of commodities - are holding US dollars (which you say is worthless). What could they do with these?

SÃO PAULO, BRAZIL – The strong position of Brazil and other developing nations during the current economic crisis could see them helping out debt stricken countries in the European Union, according to Finance Minister Guido Mantega. President Dilma Rousseff is in New York to open the United Nations General Assembly, and will also attend a meeting taking place between the BRICS (Brazil, Russia, Indian, China and South Africa) countries, the IMF and the World Bank.

http://riotimesonline.com/brazil-new...struggling-eu/

[Solachica]

Euro wud fall? I have to buy some euro so maybe I wud wait

[miktay]

Lex, a helluva lot of countries - especially exporters and producers of commodities - are holding US dollars (which you say is worthless). What could they do with these?Oecar: a lot of currencies are going 2b debased.This includes the US dollar. The US dollar will suffer the consequences in due course.I lay a good part of the responsibility for this squarely at the feet of the US who departed fm Bretton Woods in 1971. All countries followed suit. We now have a plethora of fiat floating and pegged currencies.Of immediate concern tho iz the Euro.The US can print it's way out of a debt crisis until creditors cease to extend credit.This is not allowed for the Euro. As is any mechanismn for member departure fm the Eurozone.These will happen anyway.

[greall]

Sorry,oecarb,but the Eurozone's under way too much pressure...more than the USD and the camel's about to collapse...

Greg

[oecarb]

The US can print it's way out of a debt crisis until creditors cease to extend credit.This is not allowed for the Euro.

OK. I'll stick my neck out here. Why break the habit of a lifetime?

My prediction is that the BRICS would bail out the euro.

The price of this would be that the real, the yuan, the rupee, rand and the rouble would join the euro to kick out the dollar as world reserve currency.

[miktay]

OK. I'll stick my neck out here. Why break the habit of a lifetime? My prediction is that the BRICs would bail out the euro.The price of this would be that the real, the yuan, the rupee and the rouble would join the euro to kick out the dollar as world reserve currency.

Interesting Carbs. What iz the basis of this supposition?

[lexbarker]

Lex, a helluva lot of countries - especially exporters and producers of commodities - are holding US dollars (which you say is worthless). What could they do with these?

The road to a one world currency is under way. I believe in the end there will be an exchange of the new currency for the debased money. You control the money, you control the economy, you control the country, you control the people.

[lexbarker]

OK. I'll stick my neck out here. Why break the habit of a lifetime?

My prediction is that the BRICS would bail out the euro.

The price of this would be that the real, the yuan, the rupee, rand and the rouble would join the euro to kick out the dollar as world reserve currency.

Hmmm, quite interesting. Moving from Brand X toilet paper to Cement Bags. Well, at least your finger doesn't bore through. The bowl might be plugged and overflowing but you are clean.

[guyguy]

If the Euro falls and the USD falls too, which seem to be a certainty, the world's reserve currency will then become the Chinese Yuan. That prediction that the world will end in October may be correct after all.

[oecarb]

Interesting Carbs. What iz the basis of this supposition?

The following chain of events:

France's Lagarde To Meet Chinese Officials To Seek Support For IMF Top Job Bid

-- French Finance Minister Christine Lagarde to meet China vice premier, central bank chief and finance minister to seek support for IMF top job bid
-- China not yet committed but unlikely to block Lagarde if bid widely supported, analysts say
-- China may hope for Lagarde's support in promoting international role of yuan, analysts say

http://www.nasdaq.com/aspx/stock-mar...mf-top-job-bid

The payment?
.

IMF names first Chinese deputy managing director

China has secured its first top-level post at the International Monetary Fund (IMF) in recognition of its growing power in the global economy.

New IMF Managing Director Christine Lagarde appointed Zhu Min to a newly created deputy managing director post.

http://www.bbc.co.uk/news/business-14131719

.
Next move?
.

The strong position of Brazil and other developing nations during the current economic crisis could see them helping out debt stricken countries in the European Union, according to Finance Minister Guido Mantega. President Dilma Rousseff is in New York to open the United Nations General Assembly, and will also attend a meeting taking place between the BRICS (Brazil, Russia, Indian, China and South Africa) countries, the IMF and the World Bank.....

.....Mantega sparked rumors and debate in both Brazil and other BRICS nations last week when he was quoted as saying that the EU needs help: “We’re going to meet next week in Washington and we’re going to talk about what to do to help the European Union get out of this situation.”

As Mantega explained to Valor Econômic, Brazil’s financial daily, the political interest in the strategy to buy sovereign debt from Europe is “to appear publicly as contributors to market stability and thereby demonstrate to what extent the balance of the global economy is changing.”

http://riotimesonline.com/brazil-new...struggling-eu/

Also check Jeffry Yu here. This is important:

http://www.reuters.com/article/video...eoId=221509269

[miktay]

If the Euro falls and the USD falls too, which seem to be a certainty, the world's reserve currency will then become the Chinese Yuan. That prediction that the world will end in October may be correct after all.

This is not just a US or European problem.This is a global issue. Fiat currencies are backed by domestic economies. The Yuan is currently not convertible. The Chinese economy has debt problems.The manufacturing sector is slowing.

HONG KONG - Is China's economy in trouble, too? As the U.S. economy appears to teeter on the edge of another recession, Europe struggles with a financial crisis and emerging markets like Brazil and India show new weaknesses, China might appear to be in better shape than most countries, economists say. But "better" is relative. On the surface, economists at the International Monetary Fund and most banks are still estimating China's growth rate to be more than 9 percent this year. China continues to run very large trade surpluses. New construction starts have soared with a government campaign to provide more affordable housing. And yet, the country's huge manufacturing sector is starting to slow and orders are weakening, especially for exports. The real estate bubble is starting to spring leaks, even as inflation remains stubbornly high for consumers - despite a series of interest rate increases and ever-tighter limits on bank lending. Because China's mighty growth engine has been one of the few drivers of the global economy since the financial crisis of 2008, signs of deceleration could add to worries about the global outlook. A survey of Chinese purchasing managers, just completed by HSBC and Markit Economics, shows a third consecutive month of contraction in the manufacturing sector. The release of the survey results Thursday contributed to a global slide in stock markets that day. Meanwhile, huge loans that Chinese banks have made to state-owned enterprises and local governments over the past three years could cause trouble if the economy does slow.

http://economictimes.indiatimes.com/news/international-business/global-crisis-is-chinas-economy-in-trouble-too/articleshow/10104287.cms

[miktay]

The following chain of events:The payment?..Next move?.Also check Jeffry Yu here. This is important:http://www.reuters.com/article/video...eoId=221509269

A 'BRICS' bailout really means a China bailout...Brazil, Russia and India are on the fence.

New Delhi would be “cautious” about supporting a plan, an Indian finance ministry official, who declined to be identified, said on Tuesday.India holds about 20 percent of its $320 billion in foreign currency assets in euro debt and a senior Indian official said that proportion would not change.“All I can tell you is we will maintain the 20 percent ratio,” the official said.Vadim Lukov, the Kremlin’s special envoy to the G8 and a BRIC coordinator, declined to be drawn on a BRICS plan.“I will not deny or confirm this information,” Lukov said. “Any such information may disturb the markets and potential buyers of the bonds.”Global policy coordination would also be difficult because countries are at different stages of the economic cycle, Indian Finance Minister Pranab Mukherjee said on Tuesday.A Brazilian government source said the country did not intend to use its international reserves of around $355 to buy European debt.

http://business.financialpost.com/2011/09/14/will-the-brics-save-europe/ China appears to want trade 'concessions'Will China throw good money after bad money?Will all Eurozone nations agree to this.?IMHO we will have to wait and see.

[lexbarker]

A 'BRICS' bailout really means a China bailout...Brazil, Russia and India are on the fence.http://business.financialpost.com/20...s-save-europe/ China appears to want trade 'concessions'Will China throw good money after bad money?Will all Eurozone nations agree to this.?IMHO we will have to wait and see.

China is in a "damn if you did and damn if you don't" situation. If they do give it there may be a lot of strings attached. But in the end when all the aid is gone the problem will be still there as long as the people who created it are still running the show.

[oecarb]

China is in a "damn if you did and damn if you don't" situation. If they do give it there may be a lot of strings attached. But in the end when all the aid is gone the problem will be still there as long as the people who created it are still running the show.

EU/China trade is very important.

TIANJIN - Economic ties between the European Union and China constitute a key component of a sustainable global recovery, and the two should work to look beyond short-term trade irritants, said a European Commission economist at a five-day forum that ended Saturday.

Lucian Cernat, chief economist of the European Commission, said China is the fastest growing market for EU trade and an important destination of the bloc's foreign direct investment, while the EU remains the biggest market for Chinese exports.

http://www.chinadaily.com.cn/china/2...t_13726396.htm

[lexbarker]

EU/China trade is very important.

So is that viewed as a sort of "hostage" situation?
The USA/China trade is also important and look at the quantity of dollars they are holding.
You think they should have the same amount in Euros too?

[oecarb]

So is that viewed as a sort of "hostage" situation?
The USA/China trade is also important and look at the quantity of dollars they are holding.
You think they should have the same amount in Euros too?

Check out what this fella have to say:

http://www.reuters.com/article/video...eoId=221509269

[lexbarker]

Check out what this fella have to say:

http://www.reuters.com/article/video...eoId=221509269

Yeah, I saw that in your previous post that is why I said that China is in a no-win stiuation. However, like I said, if the EU do get the bailout and nothing is done to remove the cause of the problem, it is just wasted money for the BRICS but the bankdits would be laughing all the way from the bank.

[oecarb]

Yeah, I saw that in your previous post that is why I said that China is in a no-win stiuation. However, like I said, if the EU do get the bailout and nothing is done to remove the cause of the problem, it is just wasted money for the BRICS but the bankdits would be laughing all the way from the bank.

If the EU is bailed out, all attention would turn to the vast US debt.

[miktay]

If the EU is bailed out, all attention would turn to the vast US debt.

IMHO any Euro bailout will be am ongoing action..

Greece may have an orderly default but Spain and Italy are wobbling. Then there is Portugal and Belgium.

Eurozone politicians cannot agree.

A growing minority recognize French and German gubmint actions as thinly disguised bank bailouts. European bank runs have started.

Debtor nationals resent imposed austerity. They have no voice in the poltitical process.

The Euro crisis will not go away until gubmnint stops bailing out the banks.