http://www.bloomberg.com/news/2012-...f-leaders-at-eu-summit-backed-euro-bonds.html oh yea? Pretty sure Monti is talking boll*cks here. I seriously doubt Monti can persuade Germany, Austria, Holland (and Finland) into allowing EuroBonds as an answer to all the problems in the EU. If he can't what else can they do? Let Greece exit the Euro and risk Spain (+ possible Portugal & Italy too)? Annoying lack of scenario role play in the mainstream media.
EuroBonds are one of the most controversial points currently being discussed. French president Hollande keeps on mentioning them quite often. Merkel strictly opposes this idea. That's clear: At the moment, Germany can borrow money at 0.0% interest rates, and with EuroBonds, the time of "Free Money" would be over. The main arguments against against EuroBonds are that they will remove the pressure from the "problem countries" (i.a. all except Germany ) and they will no longer see a need for austerity. (The official argument is that EuroBonds violate some contracts, but this may just be some formal thing... ). Some others say that we in fact already have some sort of EuroBonds, because the richer countries are going to pay for the others in form of the guarantees that are made via the EFSF I think that EuroBonds could "solve all problems": The markets in the probelm countries would flourish, being flooded with fresh money. But in fact, they would not be flooded with money, but with debts, so the same problems would probably strike back (even stronger) some time in the future. However, hardly any real political decision can be made before the parliament elections in France, and before the elections in Greece. Until then, the Greek candiate Tsipras will propose to not pay back any debts, Hollande will be playing the "stong man", and Merkel will keep saying "No".
Yes eurobonds bring this whole sorry saga to a head...'print money/debt' vs 'austerity/Live within means' Who wins the argument steers the global course. I'm with Germany/Austria/Holland/Finland on this one but odds stacking against, the lure of the printing press seems to most likely course at this time. Just wish ihad more spare money to buy silver
Possible scenarios from zerohedge.... http://www.zerohedge.com/news/four-euro-divorces-no-funeral-yet
Can't work under our present financial system. It's just impossible. It needs debt to thrive. Our Federal government wants to increase spewnding (sic), that's our debt limit, by $50 billion. That's a 20% increase in 1 year!!!!!!!!!!!!!!!! When they use the term"austerity", it doesn't mean governments spending less, it means borrowing more, people paying more taxes and receiving less. Wayne Swan's federal budget will apparently be back in the black in a year. Fudged figures - they don't prepare budgets, they prepare dudgets. All he has done is slash $1.5 billion from the Department Heads' future estimates wish list. This is how they prepare budgets - on both sides of the political divide. "Austerity" will not work. It's a sham. A plot to prop up the investors, and hoodwink the voting public in the States. Austerity is debt. It's been redefined.
bit of sausage from mcdonalds just came out below i need do number two after eurobonds will come eurasia bonds, then followed by global bonds... then the zombie apocalypse bonds = derivatives with a sexier shorter word bonds = can be broken, even if chemical reaction oh these analogies hurt my head
Eurobonds will never happen. It's good in theory, but so was the idea of the euro. This is an analogy for the current Eurobond scenario: Greece goes to Germany, ' i have no money can I have some of yours?' Germany says, ' I just gave you some money, where did it go? That was suppose to get you on your feet while you look for a job'. Greece responds, ' I already spent it, it wasn't enough and I still don't have a job, so can I please have some more?' Germany replies, ' well I have loans to pay off myself, I can't pay your loans and mine at the same time and I already gave you money twice to help out. So no, I can't give you any more of MY money'. Greece says, ' ok, well if you can't give me anymore of YOUR money, can I go out and get a loan from somewhere with a garauntee in YOUR name? because you have a good credit rating and I don't. France thinks its a good idea'.
Dr.Gold, I agree somewhat but, what if the 'plan' is to completely destroy middle class and to encourage distrust in the current 'system'? I favour Germany will approve eurobonds or equivalent, not because they are stupid and don't know any better, but because behind the curtains the mega rich will be loving it I suspect Germany will still not be 'giving' their wealth away, but will instead use their position of power to persuade others to do so, eventually leaving only Germany left where all (incl. France) will rely on Germany - just the way they want it After all, Germany does have the most voice in Euro most investors are not warren buffets, and most investors rely on the advice and information what the mega rich wants them to know quantitative easing passed two times in the states, yet each time 'we' knew it was bad overall - we are suckers (i.e. investors) .
