How the Euro is gaining currency
As the credit crunch bites harder, joining the Euro may prove not just economic wisdom but simple self-preservation for the UK
John Stevens guardian.co.uk, Monday October 06 2008 19:30 BST
If one wanted a definitive measure of the anti-European bias of our financial commentators, it has been the exaggerated reaction to present uncertainties over national government bank support schemes within the European Union. Of course, the current competitive bailouts are highly undesirable, as the reaction of the markets has shown. They should and will, doubtless, be replaced by a more coherent and coordinated approach, not least as a result of the fallout we have seen. There is no alternative to this. Read the rest of this entry »
“The usual patriotic and highly independent Icelandic politicians and union leaders are now crying out for EU membership to save them from the impeding collapse, much as Ireland was able to expand its liabilities many fold through its declaration of a 100% guarantee to all depositors, whilst comfortably sitting under the EURO umbrella and therefore avoiding a currency collapse that would have occurred if Ireland had an independent currency as does Iceland. Still Iceland will be forced to go cap in hand to the European Union to help prevent a total loss of confidence in the Krona which has crashed by 30% against the US Dollar in less than a month.”
The focus of the financial storm now shifts to the small North Atlantic Island state of Iceland, a country with barely 330,000 inhabitants that saw its banks in recent years expand across Europe as they played and rolled the dice in the global derivatives market, financed on leverage from financial institutions across the globe that were eager to lend on the back of cheap low interest rate carry trade financing which delivered profits for nothing i.e. the difference between the rate borrowed and charged on the interbank market for a near limitless exponentially rising over the counter derivatives bubble that passed $500 trillions, that’s trillions NOT billions!
An unprecedented popular protest led Congress to reject the Treasury’s initial bailout plan on Monday, September 29. Most commentators have noted how ironic and seemingly out-of-character it was that the bailout was defeated mainly by Republicans, and indeed by the party’s right-wing Bible Belt Conservatives. But would it be too much to hope that these Congressmen bore in mind the Christian ethic embodied in Matthew 18 – almost literally a Biblical condemnation of the bailout’s terms?
Mandelson is back, declaring Britain to be in “something approaching a national emergency”. That’s very diplomatic: in fact, it is bankrupt. Ever since the collapse of Northern Rock the government have been discreetly channeling public funds to the banks. That this process was nearing its limits was shown when Mervyn King, head of the Bank of England, threatened to resign. Brown in his desperation went to Washington to talk up the US bailout from which it appears British banks would benefit substantially. Paulson tried to bounce the Europeans into a similar bailout of which, once again, Britain would be the beneficiary. This was scotched by Germany and has been dropped. Where else can Britain go, cap in hand?
An off-shore economy based on financial wheeling and dealing and extravagant consumption being forced to look for salvation in Europe and the euro: this is the spectre of Britain to be.
The snow has arrived early in Reykjavik after an unusually long and warm summer. The freeze has brought out the ghostly green haze of the aurora borealis – the Northern Lights – the shape of which shifts dramatically across the tiny city’s black skies.
Economic collapse, military humiliation and afloat from their doomed other half; can Britain wake up in time to salvage something from the wreck it finds itself in??
Britain’s most senior military commander in Afghanistan has warned that the war against the Taliban cannot be won. Brigadier Mark Carleton-Smith said the British public should not expect a “decisive military victory” but should be prepared for a possible deal with the Taliban. Read the rest of this entry »
TBILISI, October 4 (RIA Novosti) – Georgia’s opposition Labor Party called on the president Saturday to sell off his new residence to buy accommodation for people left homeless by the August conflict over South Ossetia.
California is the latest US state to be feeling economic shockwaves from the financial crisis on Wall Street in the form of budget deficits, dwindling finances and plummeting pension funds.
The 263-171 roll call Friday by which the House approved a $700 billion government bailout bill for the battered financial industry.
A “yes” vote is a vote to pass the bill.
Voting yes were 172 Democrats and 91 Republicans.
Voting no were 63 Democrats and 108 Republicans.
X denotes those not voting.
There is 1 vacancy in the 435-member House. Read the rest of this entry »
I see Johnny with his head hanging down
Wondering how many schillings left in that pound
Cost of living it is rising so high
Dollar see that have heart attack and die Read the rest of this entry »
In These New Times 