Dutch cabinet resigns over collapse of austeriy talks

Wookster

Thrugelmir wrote: »

Time is running out.

That does seem to be the case.

Perhaps collapse of the Euro/ mass printing of money in the Euro area will lead to the long dreaded inflation that some of us have been predicting.

Graham_Devon

They were talking about printing money on the radio earlier. It seems a real option now. One which Germany won't like, but the preferable option to the end of the Euro for those who won't like it.

It was suggested that they may simply come up with a completely new "way" of printing money. I.e. it's QE, but not QE, to get around the printing money issue. Could be, for instance, simply printing the money to "take control" of a country. Or something like that anyway.

Thrugelmir

Wookster wrote: »

That does seem to be the case.

Perhaps collapse of the Euro/ mass printing of money in the Euro area will lead to the long dreaded inflation that some of us have been predicting.

The final death knell of the West. Now that economic power is shifting elsewhere in the world.

Wookster

Thrugelmir wrote: »

The final death knell of the West. Now that economic power is shifting elsewhere in the world.

That I don't believe - there are serious problems in the 'upcoming countries', particularly closed economies, no rule of law, poor innovation, poor skills, difficulty of doing business etc.

Thrugelmir

Wookster wrote: »

That I don't believe - there are serious problems in the 'upcoming countries', particularly closed economies, no rule of law, poor innovation, poor skills, difficulty of doing business etc.

Who is going to fund the West?

The financial power is shifting. Whether we like it or not. China has acquired the commodities over several decades. Now is acquiring the technology. Have no need of the West's products in the main.

Itismehonest

Unfortunately, the West is now becoming the Third World.
We've lived way beyond our means & now many can't understand that the money to keep that up just isn't there.
Unfortunately, the longer it takes people to realise that, the more they dig themselves into deeper holes.
Greece, Spain, Italy are all out on the streets over cuts but don't seem to realise that the rates their country has to borrow at mean that those in employment today - particularly those employed by the State - may not be tomorrow because the cuts will have to be even tougher. They may not like reduced pensions, longer working hours etc but at least, at the moment, they have jobs.
It's only our AAA status, & the rates that having that allows us, that has stopped us going in the same direction. Sadly, like their Southern European countries counterparts, many here think money can be found for all their demands.

I've no idea what will happen when everything collapses in the Euro zone but, in some ways, it may be exactly what is needed.
Nothing upsets the markets like uncertainty & that's what we've had for years now.

Wookster

Thrugelmir wrote: »

Who is going to fund the West?

The FPIIGS will default and print bucket loads of cash. There will be massive inflation, relative wealth will drop significantly after the Euro collapses. The FPIIGS will go back to being semi-competitive, albeit with a much lower standard of life, then they are now.

Thrugelmir

Wookster wrote: »

The FPIIGS will default and print bucket loads of cash. There will be massive inflation, relative wealth will drop significantly after the Euro collapses. The FPIIGS will go back to being semi-competitive, albeit with a much lower standard of life, then they are now.

Doesn't solve the fundamental problems that face the entire Eurozone. Many European banks are still undercapitalised. The cuts in living standards have to be real. The effect of QE in the UK has been to mask the reality. We are now paying the price with inflation. As excess money supply circulates the economy.

StevieJ

A._Badger wrote: »

In that case, can we borrow him once he's sorted-out Holland's problems?

Not a surprising comment from you.

Generali

Thrugelmir wrote: »

Doesn't solve the fundamental problems that face the entire Eurozone. Many European banks are still undercapitalised. The cuts in living standards have to be real. The effect of QE in the UK has been to mask the reality. We are now paying the price with inflation. As excess money supply circulates the economy.

I can only see one flaw in your argument: the money supply (M4) is falling not rising. It's down over 3% year on year IIRC.