“It is inconceivable that the euro fails”
November 28th, 2010
Via: Reuters:
Senior euro zone officials dismissed any risk of the single currency area breaking up after financial markets, alarmed by Ireland’s debt crisis, forced the borrowing costs of Portugal and Spain to record highs.
“There is zero danger,” Klaus Regling, chief of the euro’s financial safety net, European Financial Stability Facility (EFSF), told German daily Bild in an interview published on Thursday when asked if the euro zone could break apart.
“It is inconceivable that the euro fails,” he said.
Some economists and commentators, mostly in Britain and the United States, have suggested the 16-nation common currency launched in 1999 could split because of peripheral members’ high debts and deficits, and a loss of competitiveness with Germany.
But Regling said: “No country will give up the euro of its own will: for weaker countries that would be economic suicide, likewise for the stronger countries. And politically Europe would only have half the value without the euro.”
Klaus sounds like he’s sweating bullets. Someone needs to teach Klaus some press corp speak. First of all, you never use absolutive speak like “zero danger” and “inconceivable.” Way too relatiive and in absolutes. WAAY to subjective. No data to support your hyperbole? Then shut up. I’ve been writing factual reports for 20 or more years thank you. Experience tells me that when people like Klaus start emoting like this is because they are in denial. They know the hammer of truth is coming and its going to hammer them hard.
I think of Klaus as a cheerleader. For somebody.
Hopefully Klaus only loses his job and not his head.
I thinks its stupid to go out cheerleading for anything in the monetary world right now. TOO MANY CARDS ON THE TABLE IN A WORLD GAME OF POKER.
Wish it could be resolved in a card game: WIN, LOSE, OR DRAW.
And whoa wouldn’t Klaus be out of job if “countries DID give up the Euro OUT of THEIR OWN FREE WILL.”
Eileen, ye beat me to it…though you’re clearly more qualified to comment on this.
βThere is zero danger,β is an unjustifiable statement – as there’s always risk, even if it’s infinitesimal!
Meanwhile, Ireland just dumped their pension fund into the banks. Whoopee.
Euro becomes next USD and takes on its international role as default global currency. Eurozone expands, though some current nations opt out, to include North African and Middle Eastern countries, including nations currently under US control. A new ‘Europa’ replaces US as world power. Geographical borders have some correlation to the following chart with the addition of nations rich in oil. Its sphere of influence and economic alliances would be global:
http://www.trec-uk.org.uk/images/DESERTEC-Map_without_squares_medium.JPG
That’s what I had envisaged. But now…? Anyone else want to have a go?
A couple of side notes:
1. For 20 years, though people consider it inconceivable, I’ve strongly suspected that one day Germany herself will withdraw.
2. Europe’s namesake has an interesting story:
http://www.google.com.au/search?q=Europa
Naturally, my first thought was:
http://www.youtube.com/watch?v=D58LpHBnvsI&feature=related
I’ll just point out that if something is inconceivable, that only speaks to your inability to conceive of it, not to whether or not it’ll actually happen.
“But Regling said: βNo country will give up the euro of its own will: for weaker countries that would be economic suicide, likewise for the stronger countries. And politically Europe would only have half the value without the euro.β
“The 15 billion euros ($20 billion) in spending cuts and tax increases unveiled on Wednesday will form the basis for an IMF/EU rescue package worth about 85 billion euros.
But the measures, including cuts to the minimum wage and thousands of job losses, are likely to seal defeat for Cowen’s Fianna Fail party in the poll for a vacant parliamentary seat in Donegal and result in Cowen’s majority shrinking to just two.”
2 interesting quotes from the same article. i especially like the cuts to minimum wage, without any suggestion of ‘capital gains’ measures or anything progressive like that.
and let’s just add, that for a country to be economically sound and participatory, it requires the citizenry to use it’s currency…
i’ll just leave this here: http://news.coinupdate.com/widespread-silver-bar-shortages-0542/ and certainly not the only example out there π
@ the Lieutenant
Ho ho ho π
excellent comment, Eileen.
Klaus Regling is the chief of the EFSF, and he uses language like this? amazing.