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Monday, February 22, 2010

PIIGS To Get Snouts Into British Trough


The Greek bail-out gets ever closer. The one being proposed is tiny in comparison to the debts, at Euros 20-25 billion and will not come close to paying them off, or turning round Greece's economy. The bail-out might send a signal to the markets. But will it?

There is something else.

As Dan Hannan writes in his Telegraph blog HERE, the way the bail-out is being explained by Germany (Der Spiegel) implies that non-Eurozone countries are going to be tapped as well as Euro countries. This will do wonders to Brown's pre-election popularity, and cause an outcry in Britain. 'Brits to Bail Out Pigs' will scream from The Sun.

The Greek bail-out will only delay a similar move for the other PIIGS, and will only be the first in Greece. It is setting an awful precedent. The impossibility of heading off the Euro's crash is not being faced. They prefer to delay and hope a recovery turns up.

Hopeless.

As Dan Hannan ends his blog post, thank God we're not in the Euro.

2 comments:

caw rock said...

I don't believe it is the right time to thank God for us not being in the EURO; (1) it was not his decision, (2) who tells you that that does not mean that the £ will be under severe pressure (in both directions) once the EURO fails; and (3) that time will come without any doubt.

tapestry said...

Well Rock, I was praying.

The GBP eh? I am told that the Euro will fall and the GBP will fall even lower. The Euro is called the Deutschmark/Euro on monetary charts going back thirty years.

It will bnecome the Deutschmark again in time.