Euro

If I was Cypriot politician I’d be taking a flight overseas for a while, quick smart

Cyprus has decided to raid the piggy banks of depositors. In order to fund the excesses of wayward borrowers and a spendthrift government they have decided to scalp up to 10% from saved funds in their banks. Stealing the wealth of those who have done it right…as Cactus Kate rightly says Cypriots riot for much less.

There is going to be bloodshed and politicians will cop it.

Imagine over your weekend your government announced they are going to steal 6.75-9.9 per cent of your total savings to pay for those who ran up all the debt?

Well it is happening in Cyprus.  Read more »

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The Euro is rooted

There are too many bludging Greeks and Spaniards and Italians bludging off the Germans. The French will start bludging next.

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Tell him he’s dreamin’

The Telegraph

The euro is rooted. Hard working Germans won’t want to fund dodgy, lazy Frenchmen to sit around doing nothing while getting paid by their government.

Forget the problems at the fringes, it is the bludging frogs who are the real problem.

One of the founding fathers of the euro admits that some states may be forced to abandon the single currency, but insists Germany would be better off staying in.

Otmar Issing, a former European Central Bank chief economist, warned that the eurozone could be heading towards fracture in a book calledHow we save the euro and strengthen Europe published this week .

“Everything speaks in favour of saving the euro area. How many countries will be able to be part of it in the long term remains to be seen,” said Mr Issing in the book, which is written as a conversation between an economist and a journalist.

At no point did he explicitly refer to Greece, but the debt-stricken country has been hovering perilously close to default and an exit from the eurozone as it makes harsh spending cuts and tax hikes to appease the EU and ECB after receiving billions in bail-out payments.

“We are still a long way off saying ‘that’s it, now we are sure to make progress’. Substantial reforms in almost all countries are still pending,” he added.

The Genius Of Mutual Indebtedness

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Is the Costa Concordia a metaphor for the European Project?

According to Christopher Brooker it is.

When the headlines were filled last weekend with the sinking of the Costa Concordia, I checked the entry for the doomed cruise liner on Wikipedia and was intrigued to see that the ship was named in honour of “continuing harmony, unity, and peace between European nations” (as confirmed by the “ring of stars” shown prominently on its prow). What an apt metaphor, I mused, for the fate of that other monument to European harmony, the euro, which seems similarly to be half-sunk on a rocky ledge from which at any moment it may slide off to the bottom.

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On the Wharf with David Henderson

Money makes the world go round so when the tipline received these shots of a man who made the money stop, we felt the public duty to mock senselessly the poor and needy.

This is David Henderson (Auckland). He owes a lot of people a lot of money. Some owe finance companies a lot of money who owe little people a lot of money whom everyone seems to have paid to bailout.

Henderson’s assets don’t seem to be frozen. He’s living it up at Euro wearing an outfit that could have only come from Worzel Gummidge’s tailor. From the creased linen look jacket to the white mafia look cum car-dealer shoes it makes you wonder how early he got up to choose that shirt.

Henderson should apply for a wharfies position. He sits around on his fat lazy arse on a wharf enough. Owing money everywhere and bullying those who try to do free business. He’s on the phone long enough to fund the split between Telecom and Chorus.

All our tipster said about the man was “cash upfront”.

Too big to bail

Italy is too big to bail:

Italy’s government debt is massive, at around €1.9 trillion, or 120pc of its gross domestic product (GDP). By the end of the year, it will be 2.7 times the size of the debt of Greece, Ireland and Portugal – the current bailout recipients – put together, according to Gary Jenkins, an analyst at Evolution Securities. He estimates that rescuing Italy would cost around €1.4 trillion.

The problem is that the eurozone’s rescue fund has firepower of just €440bn and much of that has already been committed. Politicians have pledged to boost it to €1 trillion, but efforts to do so are not going smoothly.

Takes a Chinese to cut through the crap

With all the turmoil in the world economy it takes a Chinese businessman to cut through the crap that is besetting Europe:

Also last night, the chairman of the supervisory board of China Investment Corporation, the country’s sovereign wealth fund, put further distance between China and the eurozone bail-out, saying that Europe’s bloated welfare state meant that people did not work hard enough.

“I think if you look at the troubles which happened in European countries, this is purely because of the accumulated troubles of their worn out welfare societies,” Jin Liqun said in an interview with Al Jazeera television. “I think the labour laws are outdated – the labour laws induce sloth, indolence rather than hard working. The incentive system is totally out of whack.”

Perhaps Jin Liqun needs to have a chat with the Labour party here.