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European Union Being Held Together With Duct Tape

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posted on Jun, 14 2009 @ 09:25 AM
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Among its many other sins, the greenback is a press hog. The world’s reserve currency, loved and loathed as it is, simply gets most of the ink these days.
In that light many a U.S.-based commentator, not least your cynical Taipan Daily scribes, have repeatedly waxed eloquent on the long-run death of the dollar But in our zeal we sometimes forget that, in order for the dollar to die, it has to die relative to other fiat currency offerings... and some of those others are looking pretty sick too.
In short, the dollar is not the only basket case out there. Take the euro, for example. Now there’s a troubled currency if ever one existed.
On top of that, various bits of Europe are in the process of blowing up... or falling apart... or both. There is deep trouble brewing in multiple corners of the continent. Let’s take a quick look on a country-by-country basis to see why Europe is being held together with duct tape.


Britain on the Brink


We’ll start with Britain - not an adopter of the euro, but a member of the EU (European Union) nonetheless.
Britain has been hurled into political chaos, thanks to an unholy combo of deep financial crisis, explosive Labour Party scandals, and the hapless lame-duck status of embattled Prime Minister Gordon Brown. Cabinet Ministers are resigning left and right in protest as Brown’s popularity plummets, calling for the PM to step down. Election results tallied this week showed the Labour Party (Brown’s party) putting in its worst showing since 1918.


Latvian Pressure Cooker


Elsewhere in Europe, Latvia, a tiny country of 2.2 million, threatens to unleash havoc on the entire continent.
Latvia’s currency, appropriately known as the lat, is officially pegged to the euro. Latvia set up the currency peg to speed up official entry into the EU. But now the fiscal discipline of maintaining the peg is crushing the Latvian economy.


Germany in a World of Its Own


As the global financial crisis has unfolded, Angela Merkel, the Chancellor of Germany, has been looked on with increasing amounts of admiration and horror, depending on the observer’s vantage point.
Those who admire Merkel do so because Germany has appeared to completely go its own way in the midst of turmoil. As other countries have stimulated and relaxed and eased to fight the fires of slowdown, Germany has said “Nein!” to anything that smacks of lax fiscal policy.


The Rise of the Far Right


Last but not least, a surprising new trend has arisen from the EU-wide elections held in the past few days.
“Conservatives raced toward victory in some of Europe's largest economies Sunday,” the Associated Press reports, “as initial results and exit polls showed voters punishing left-leaning parties in European parliament elections in France, Germany and elsewhere.”


A Poisonous Stew


There are still other problems in Europe we haven’t really touched on, like the Spanish real estate markets headed for freefall, the dire state of the Irish economy (joke du jour on the Emerald Isle: What’s the difference between Ireland and Iceland? The letter ‘C’) and the toxic leverage still lurking in European banks.
Put all this together, and what you get is a truly poisonous stew. Half of Europe is still committed to fiscal stimulus and economic coordination... while the other half has swung inward and hard right, towards a nationalist and isolationist stance, at a time when exports are weak and the whole continent is in trouble.


Link to Source
www.marketoracle.co.uk...




posted on Jun, 14 2009 @ 09:26 AM
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European Union Being Held Together With Duct Tape

While the Globe is in Chaos we are left with one option; to hope that this Brown and Obama economic charade will work. If not it appears we are all doomed.

With the Euro in jeopardy and the US dollar falling it seems inevitable that we will soon be faced with a new currency. One that is governed regulated and nationalized.

It’s too late to look backwards we must focus on the pro’s and con’s of a new globalized world, in which we aren’t allowed to fail. Does this seem fascist? I believe we are in the eye of the storm. What will we see, after the storm?


[edit on 14-6-2009 by wonderworld]



posted on Jun, 14 2009 @ 09:32 AM
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Great post! S&F

It seems like we are in the "Perfect Storm" headed to a world currency to "fix" the problem we are in!



posted on Jun, 14 2009 @ 09:35 AM
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reply to post by Ace High
 


Yes and I think the US in being held together with scotch tape.
Thanks,

[edit on 14-6-2009 by wonderworld]



posted on Jun, 14 2009 @ 09:43 AM
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Iceland? Latvia? Those are ants in the economy of Europe. Our country, with only 16 million people, gave Iceland money to keep afloat I think.

Of course the Euro is going to face difficulties but nowhere as big as the dollar. Remember that the European banks didn't start pressing the euro into oblivion, unlike the dollar.

I would also like to add that the European union is just here for 2 decades or something, before that time every country had his own good/strong economy. Somehow I think that helps
, I'm no expert and I hardly think anybody really is on the subject.



posted on Jun, 14 2009 @ 09:54 AM
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reply to post by mortje
 


I'm sure not an expert either. If I remember correctly Iceland went bankrupt but I havent heard much more about it.

I know the Royal bank of Scottland wasnt doing to well also. The bank of Mellons was in trouble but HSBC was doing fine last time I heard.



posted on Jun, 14 2009 @ 09:57 AM
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lol i honestly can say the european union is a joke

what's it even mean?

are they all different color power rangers? blue ranger is france, yellow ranger brittain?

what does the european "union" even do?

send us 50 troops? give us like 200 troops in Iraq? they don't help us at all they're not real og's.



posted on Jun, 14 2009 @ 10:12 AM
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Originally posted by AReptileFeeder
lol i honestly can say the european union is a joke

what's it even mean?

are they all different color power rangers? blue ranger is france, yellow ranger brittain?

what does the european "union" even do?

send us 50 troops? give us like 200 troops in Iraq? they don't help us at all they're not real og's.


The EU economy is crutial to the global financial stability. There was a time not long ago that many counties bagged the dollar in favor of the Euro.

Arab confederacies were tossing around the idea of a petro-Euro.

There have been some in the US that will only be paid in Euro's but they may have second thoughts.



posted on Jun, 14 2009 @ 10:18 AM
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The problem with the EU is they're all either tied to, or are trying to be pegged to the Euro, but, the EU doesn't take into account each regional country's strong or weak points economically...

A lot of the Eastern Country's are just starting to build their currency's and economy's and can't compete with longer standing nations infrastructures and banking systems...

I agree a disaster is in the cards...



posted on Jun, 14 2009 @ 10:28 AM
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Originally posted by wonderworld

The EU economy is crutial to the global financial stability. There was a time not long ago that many counties bagged the dollar in favor of the Euro.

Arab confederacies were tossing around the idea of a petro-Euro.

There have been some in the US that will only be paid in Euro's but they may have second thoughts.


nobody cares about the european union hate to break it to you

i don't think it serves any purpose other than to be cute and neat

the truth is, the european union is a joke homie...

europe is a joke, homie

they just want to eat, sleep, and repeat. they won't help us against the 2 wars we are fighting, they won't do anything but eat and sleep.



posted on Jun, 14 2009 @ 11:01 AM
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reply to post by wonderworld
 


If we are in the eye of the storm then the worst has yet to come. The backside of the storm is always the worse.

The question is how long and how big is the storm that is coming, if we are just in the eye, then there isn't a fiat currency that is going to survive. Globalization is about to die a horrible death.

They don't want it to die, but you know what they say about best laid plans. Then take the situation in Iran right now, if they are successful in overthrowing the Ayatollah and his regime its going to be a big hit to the world economy.

Globalization is to big NOT to fail. Nothing lasts forever especially corporation giants. The question is how many people are going to die.



posted on Jun, 14 2009 @ 11:22 AM
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reply to post by Hastobemoretolife
 


The IMF said it’s possible to take the “revolutionary” step of creating a new global reserve currency to replace the dollar over time.

The IMF’s so-called special drawing rights could be used as the basis for a new currency.

These SDR’s may soon be the new reserve for the Euro, as well.

www.bloomberg.com...



posted on Jun, 14 2009 @ 11:24 AM
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reply to post by AReptileFeeder
 


Arent you being a bit harsh on Europe?? By the way my name isnt homie it's homet.



posted on Jun, 14 2009 @ 11:26 AM
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Originally posted by wonderworld
reply to post by Hastobemoretolife
 


The IMF said it’s possible to take the “revolutionary” step of creating a new global reserve currency to replace the dollar over time.

The IMF’s so-called special drawing rights could be used as the basis for a new currency.

These SDR’s may soon be the new reserve for the Euro, as well.

www.bloomberg.com...


The Euro was nothing more that a test for the new world currency. It was successful enough. The elites are ready to move to the next stage and Obama is their man to advocate the new currency. We all know Obama can do no wrong! Right??



posted on Jun, 14 2009 @ 11:29 AM
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reply to post by wonderworld
 


Yea but what they say and what is reality are two totally different things. It's still all fiat currency, it's doomed to fail before it even gets started. It's just going to make the depression worse.

There is way too much debt. Replacing the currency isn't going to solve the problem. Creditors want to get paid with hard assets not funny money. There will have to be a major world event for something like a World Currency to even being to successful. Which means WWIII.


Then they have to win that war. There is a lot more to it than just issuing a new currency.


cdi

posted on Jun, 14 2009 @ 11:33 AM
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reply to post by wonderworld
 


hi wonderworld
i do hope that the duct tape used to bind us all together conforms to the appropriate eec directive. we may have to send in the observers before taking further action on the width compared to the respective border width. furthermore a series of meetings will have to be arranged for all mep's to discuss the 'fit for purpose' directive which will include a number of field trips to ensure all member states have followed the correct procedures with respect to procurement and tender processes.
following these and further consultations it will be necessary to fly all members to the caman islands for lobster and canapes followed by cocktails. after this exhaustive excercise the menbers will be transitioned back into their respective seats within the parliament building to be offered a 'siso' (sign in sod off) or if they feel strongly about any unpopular directive 'fifo' (fit in (or) f*** off). total cost of consultation and excursions in the region of 40 million euros (daily amount uk sends to central bank with love). if any menbers are critical of the lobster, a contingency fund is available for said members to return to the caman islands to discuss the finer points of lobster boiling with the food technicians.



posted on Jun, 14 2009 @ 11:41 AM
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reply to post by Hastobemoretolife
 


I agree there is more to it than currency. I dont especially think WW3 will start the ball rolling, rather another September 15th 2008.

Something is fishy about all the large banks paying back TARP funds in the US.

I'm sure the G20 has a plan in motion and we may see this at the end of September at the end of the 3rd fiscal quarter. This time frame also coincides with the next G20 meeting.

The only thing I can think of is they devalue all currencies and use a credit system. All paperless. Just a theory though.

[edit on 14-6-2009 by wonderworld]



posted on Jun, 14 2009 @ 12:02 PM
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reply to post by cdi
 


Wow, thanks for the info on the EU issues. Living in the US I'm not too familiar with Parliment.

I do know that I have always disliked Gordon Brown. Mainly his public speeches at the G20 meetings about forming a NWO.

Most also oppose his changes to the 10p tax rate to low paid employees he’s hurting the people with tax increases just as their cost of living is going up. This would mean higher inflation.

The same thing is happening in the US, as they raise interest rates and keep the printing presses running. It’s only a matter of time before we see Hyperinflation.



posted on Jun, 14 2009 @ 12:04 PM
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reply to post by wonderworld
 


Nothing fishy, sometimes things are exactly what they seem. For all we know the banks could have went back to Obama and said we are going use the CRA(Community Reinvest Act) to issue multimillion dollar liar loans to homeless people and then when it falls back at your door step you can say good by to your political career.

10's of millions of people have just gotten burned by credit. They aren't going to accept a credit only monetary policy.

Things over here in America are already boiling over. It's like the little dog that always barks, at some point hes going to stop barking and bite.

The G20 is nothing but a ruse, the owners of the IMF, World Bank, Federal Reserve, call the shots. The G20 just gets together to laugh and tell jokes and get briefed on what course of action they need to take.

I'm going to have to disagree, with another financial collapse. It's going to have to be war to change things. If another financial collapse happens(which it will probably this fall) who's going to trust the people to "fix" the problem when they couldn't do it the first time.

Liars always lose and when the lose they lose big. The people that want to do all this are just as human as you and me. They make mistakes. I think people give to much credit to these people.



posted on Jun, 14 2009 @ 01:31 PM
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The euro will certainly face big trouble and I agree it is a test of a world currency.

But this article is very poor.
The world economy is suffering, not only the euro zone.

The euro is sick and Europe is falling apart.

First point in the article is the chaos in UK - not an adopter of the euro... it does not immunize against chaos apparently... Certainly, the collapse of the dollar is the main threat to the Europe economy but let's keep EU-centered please... The situation in the UK is less harmful to the euro than the situation in the USA for sure.
We will never know what would have happened in the UK if they had entered the euro zone.

Like pointed by mortje, Latvia - not an adopter of the euro... is really tiny, it's like 0.1% of EU GDP.
Influence on the euro is zero.

The author, now, cannot afford to name a country out of the euro zone or he will be laughed at, so he goes after Germany because it's big

So the German economy relies heavily on exports. What the article fails to notice is that 2/3 of German exports value is intra-euro zone. A strong euro is irrelevant here. Still it will hurt for the exports out of the euro zone, yes. The whole world is hurt. But actually, maybe the only good effect in having a common currency zone is that inside trade is not troubled by currencies unbalances.
I think the author fails again to prove his point.

There is no rise of the Far Right. The Far Right always had around 10 or 20 reprensentatives out of 736 in the EU parliament. French National Front lost 4 seats in the last election and hold only 3 seats now. BNP for the first time gained one or two seats I think. Because of the predominance of anglophone medias in the world, they get out of proportion media coverage. The Far Right is fairly stable.
The EU parliament always had more extremists than the national parliaments because the European elections are a draw for sovereignists/nationalists/populists/patriots, etc...

The last paragraph is a few good facts with a lot of personal opinions and Pritchard, a British, blaming the Germans for "playing with fire"


It's a very poor article in my opinion. Not that the situation is good or that the euro is safe but the arguments are terrible. Does it serve a purpose ?
I guess those experts are amongst the ones that didn't see it coming because it was unpredictable.



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