Eurozone crisis: France downgraded, Greek talks collapse

Eurozone crisis: France downgraded, Greek talks collapse

www.suntimes.com

Baroin said France had received a change to its rating “like most of the eurozone,” referring to the 17 European nations that use the euro currency, but there was no confirmation from S&P that any other nation had been downgraded. S&P had warned 15 European nations in December that they were at risk for a downgrade.

(visit the link for the full news article)


Related News Links:
www.guardian.co.uk
www.telegraph.co.uk

This really caught my attention as it is somehow connected to the situation in the Middle East and Iran.

The EU is dying, slowly; but its dying nonetheless.

The US implemented a new set of sanctions on Iran just recently, Iran responded with war games and threats that it will close the strait of hormuz as a defensive measure.

The US with it mighty military didn't back down, instead it decided to increase its naval assets in the region. The US also sent a message directly to the Iranian supreme leader, not ahmedinejad, not the chief of army, and defiantly not to Iran, but to the supreme leader, the head, the mind of the regime. it basically threatened to remove the regime should Iran close the strait.

Iran didnt back down either, and is planning more missile tests and war games soon.

The EU has agreed on the proposed sanctions, but its yet to implement them. They will hold talks on the 23rd of January in which they will decide. But with the current crisis the sanctions may not just pass.

Meaning that if there are no EU sanctions then Iran will not close the strait of hormuz as it promised, meaning the US will not have to confront Iran. The crisis might just be diverted. The most important thing is that the US does not lose face and reveal its weakness to powers like Russia and China whom are itching for US collapse.

If my assumptions are correct then Iran earns a tactical victory.

www.suntimes.com
(visit the link for the full news article)

reply to post by RizeorDie


Said powers are going to be in a lot of trouble if both the U.S. and Europe flinch too hard. That's a lot of trading that China would start to lose out on, and it's going to hurt them, whether delusional people who think that China can escape unscathed want to admit it or not.

reply to post by RizeorDie


The EU sanctions on Irans oil / gas have already been passed. The EU is now working on the time frame for enforcement.

Im curious why France was downgraded yet Germany was left alone. Both countries seem to be allowing other EU countries to use their credit cards.

reply to post by Xcathdra


I'm surprised why the UK wasnt downgraded too.

Britain is not at imminent risk of a downgrade, but Berlin sought to soften the blow to French pride when a senior German politician close to Angela Merkel said the UK should have been first in line for a cut in its AAA status on the grounds that its collective private and public sector debts are the largest in Europe.

Germany on the other hand is very strong and its one of the main reasons the eurozone is still intact.

Originally posted by RizeorDie
reply to post by Xcathdra

 

I'm surprised why the UK wasnt downgraded too.

Britain is not at imminent risk of a downgrade, but Berlin sought to soften the blow to French pride when a senior German politician close to Angela Merkel said the UK should have been first in line for a cut in its AAA status on the grounds that its collective private and public sector debts are the largest in Europe.

Germany on the other hand is very strong and its one of the main reasons the eurozone is still intact.

edit on 13/1/2012 by RizeorDie because: (no reason given)

It's because the UK government is butchering public services and cutting public expenditure to an extent that would be politically and socially unacceptable in France. UK debt is considerable, but quantifiable, unlike in the Eurozone. Who can predict what is going to happen next in the Eurozone? Germany, Finland, Luxembourg and Holland are the only EZ countries left with triple A status.

Interesting that even S&P are now saying that austerity measures are not the answer.

Originally posted by Fang

Originally posted by RizeorDie
reply to post by Xcathdra

 

I'm surprised why the UK wasnt downgraded too.

Britain is not at imminent risk of a downgrade, but Berlin sought to soften the blow to French pride when a senior German politician close to Angela Merkel said the UK should have been first in line for a cut in its AAA status on the grounds that its collective private and public sector debts are the largest in Europe.

Germany on the other hand is very strong and its one of the main reasons the eurozone is still intact.

edit on 13/1/2012 by RizeorDie because: (no reason given)

It's because the UK government is butchering public services and cutting public expenditure to an extent that would be politically and socially unacceptable in France. UK debt is considerable, but quantifiable, unlike in the Eurozone. Who can predict what is going to happen next in the Eurozone? Germany, Finland, Luxembourg and Holland are the only EZ countries left with triple A status.

Interesting that even S&P are now saying that austerity measures are not the answer.

What's wrong in getting rid of the fat? Thank the Lord the Tories got in, so many lazy mothers in the UK, make em work especiallly the lot workin for the councils and gov't organisations. They strangle me and the people who are the wealth creators in manufacturing and not the wealth devourers in thieving off us in the dole orgs otherwise known as geezers of the government people

reply to post by Fang


I think the Germans are saying that about the UK because David Cameron used his veto at the recent European leaders' meeting to stop Europe getting their hands on the City of London's money, thereby protecting the people that mostly bankroll the Conservative Party, and as a side issue, has anybody else noticed how Germany has become the leading figure in the EU? I suppose that after all these years, European domination has finally come their way. Germany has always hated the UK, and France are no better themselves, I remember when the French farmers burned British meat in protest at new directives that would allow the UK's farmers to sell their meat more freely in Europe, and the French saw this as a turf war, and tried to stop anyone else muscling in on their closed market.
I agree with the poster that said the EU is dying, the proposition that numerous countries could live under one currency and one lawmaking centre was always going to be problematical, with individual countries reluctant to change their ways, it was almost like asking all of the animals in a farmyard to call themselves cows, when there were sheep, pigs, chickens, and the like, the different animals were always going to revert to type in the long run.

reply to post by RizeorDie


The sanctions will be imposed

reply to post by Xcathdra


France is weaker than Germany, probably more exposed too.

Hope it gives Sarkozy another kick out the door

reply to post by royspeed


The City of London has a lot to answer for since the 'Big Bang' in the 80's. But France and Germanys criticisms are hypocritical. Paris and Frankfurt have been fighting for years to get a piece of the City of Londons 'action'. If France and Germany had observed the borrowing /spending limits they agreed to at the launch of the Euro, things would be very different today.

All I keep thinking is how much it would suck that I was born in a time where I get to witness the fall of western civilization.

But the west has gone through a depression before and I'm sure will make it through the one thats soon to come up. At least I'll have a story to tell my grandkids. "I lived through the second great depression and back then we didn't have teleporters and ray guns you whippersnapper!'.

With the economic collapse going on across the world. Iran talking smack, Rommey gearing to be president and threating a trade war with China and a real war with Iran hell I might even get to say I lived through ww3.

OT: Well that sucks for France I really do hope however that this whole mess gets sorted out soon and things get rolling back on track but I feel because of everything going on that something big is about to happen and all this is just pre-game.