IMF,Eurozone 400 billion pound global earthquake

IMF warns the Eurozone of £400bn global 'earthquake' and urges them to rescue Greece
By Hugo Duncan

The debt crisis crippling the Eurozone could trigger an ‘earthquake’ that slashes hundreds of billions of pounds off the global economy, the world’s financial watchdog warned last night.
The International Monetary Fund urged European leaders to rescue Greece and stop the shockwaves spreading to some of the region’s largest economies, including Italy and Spain, and the rest of the world.
‘It would be very costly not just for the Eurozone but for the global economy to delay tackling the sovereign crisis,’ said Luc Everaert, head of the IMF in the single-currency bloc.
Contagion risk: The IMF urged European leaders to rescue Greece

The Washington-based Fund said that in its ‘earthquake scenario’ – where the crisis spreads through the entire Eurozone – the size of the economy in the region would fall 2.5 per cent.
Global growth would fall by around 1 per cent, it said, or nearly £400billion.
The price of gold raced to a fresh high of $1,610 an ounce yesterday as nervous investors piled money into ‘safe havens’. Borrowing costs in the Eurozone also rose, making it even more expensive for governments to operate.
European leaders meet in Brussels tomorrow in a desperate effort to break the deadlock over a second bailout for Greece.

It is feared that if an agreement is not reached, the crisis will engulf Italy and Spain and lead to the collapse of the euro. One leading economist in London said it was ‘last-chance saloon’ for politicians to save the single-currency union.



Tick tock debt clock,I can't add much comment to this.Read the full article,it speak's for it's self.I believe American Government is stalling on the debt ceiling limit waiting for this to take place so they too can default with out the implications and blame falling at their feet.I give the economy until mid August and then it is a whole brave new world. The game is rigged and the count down is on.

Debt debt debt,debt debt,debt debt dida da dida da doooooooooo

LINK www.dailymail.co.uk...

Not much to say about the who euro situaiton, but as for the debt ceiling and whether or not it will be raise, of course it will be raised, its been raised 11 times over the last 11 years the only reason the republicans are trying to push for the stuff they want is because they can, they will milk it the best they can but ultimately it will be raised just like every year prior. Theres no reason to believe that some how this time will be any different from the last.

all to form a better NWO with a global currency for the better of man kind

/sarc

[atsimg]http://files.abovetopsecret.com/images/member/6300f5dc2cd5.jpg[/atsimg]

German Chancellor Angela Merkel and French President Nicolas Sarkozy reached a “joint position on Greece’s debt situation” after seven hours of talks at the Chancellery in Berlin today, Steffen Seibert, Merkel’s spokesman, said in an e-mailed statement.

www.bloomberg.com...

Originally posted by earthling42
[atsimg]http://files.abovetopsecret.com/images/member/6300f5dc2cd5.jpg[/atsimg]

German Chancellor Angela Merkel and French President Nicolas Sarkozy reached a “joint position on Greece’s debt situation” after seven hours of talks at the Chancellery in Berlin today, Steffen Seibert, Merkel’s spokesman, said in an e-mailed statement.

www.bloomberg.com...

Thanks for posting,the link is very non commital to what the joint descision is.I am getting very contridictry reports that it has both passed and failed ??? The latest I have is dated at the same time as your link, it say's it has failed and is predicting a Black Friday for Europe.

www.dailymail.co.uk...

reply to post by 13th Zodiac


It is sort of an fiscal agreement, the taxpayers from northern Europe and the banks voluntary together fund the bailout.
We taxpayers funds the EFSF
www.efsf.europa.eu...

The first bailout wasn't high enough, more funding was needed, and thus a second package.

This is very little information, but i do not have the details on it, only that the financial market are a bit sceptical on the funding.

Also i wonder if it does matter, because in the long run a default is inevitable, and for us all over the world that is a good thing.
We should not have to be excluded from education, medical aid, or our right to live a decent life without poverty.
In the EU we have to tighten our belts because of all the cuts and taxes, in America people seeing their savings and income being destroyed by inflation.