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Author Topic: Who will suffer the most if the euro collapses  (Read 2478 times)
falcon
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« on: June 17, 2012, 16:28:10 PM »

Germany
The mark would go through the roof and German products would become to expensive
There is no difference between the EU and the UK
60% of the population live with 60 miles of London so money has to be redistributed from the South East to the rest of the UK
It is estimated the 40% of the income genererating population of the European Union live within the Rhur Valley of Germany and generate 30% of the EU income, these figures must be questionable, but show why a rich area like Germany has to support poorer areas
If the Euro is vanquished this level of generation cannot possibly be sustained and then there will be terrible depression
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« on: June 17, 2012, 16:28:10 PM »

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sparkiemike
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« Reply #1 on: June 17, 2012, 19:51:42 PM »

 :wave

not the bankers or poltictions thats for sure

Mike

 :tiphat:
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« Reply #1 on: June 17, 2012, 19:51:42 PM »

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loafer
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« Reply #2 on: June 18, 2012, 08:25:38 AM »

Germany
The mark would go through the roof and German products would become to expensive
There is no difference between the EU and the UK
60% of the population live with 60 miles of London so money has to be redistributed from the South East to the rest of the UK
It is estimated the 40% of the income genererating population of the European Union live within the Rhur Valley of Germany and generate 30% of the EU income, these figures must be questionable, but show why a rich area like Germany has to support poorer areas
If the Euro is vanquished this level of generation cannot possibly be sustained and then there will be terrible depression

From what I can figure out there will be a terrible depression if the Euro survives Sad
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« Reply #2 on: June 18, 2012, 08:25:38 AM »

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Tetley
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« Reply #3 on: June 18, 2012, 09:05:38 AM »

The Euro was a non starter / finished either way its just a question of time befor its "adjusted "and country use the euro along side there old currencies.

unlless europe goes fully fedral with one political and fiscal policy fitting all countrys...... :whistle:

that should be good for a laughf   :drinks:

as for here only invest in anything if your prepered to take a loss as its going to be a long road for SP  to get back to the 2003,4,5,6,7 years.
« Last Edit: June 18, 2012, 09:11:18 AM by Tetley » Logged
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« Reply #3 on: June 18, 2012, 09:05:38 AM »

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ianv
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« Reply #4 on: June 19, 2012, 07:04:53 AM »

The simple answer is everyone, however it is perhaps more serious a question to ask who will suffer whilst the Euro collapses, and the answer to that is firstly Greece and its people followed by the other dominoe nations Spain, Portugal, Ireland etc etc who have been forced to go cap in hand to the bail out fund to prop up their ailing banking sector.
Currently the Euro is being kept artificially strong (currently around the 1.24 mark) by both nations like Germany within the Eurozone and China outside it, from the Chinese point of view by buying up Euros on the international exchange market they are buying leverage long term into a huge export market that will help sustain their growth and will ultimately use this leverage to try to influence the decision makers in the Eurozone, as if they decided to offload their Euro stocks on the market the Euro would rise way above the 1.40 mark making exports from Europe more expensive. The Germans on the other hand are milking the Eurozone for every Euro they can get by using the low Euro rate to their competitive advantage in the same export market, it is in their interest to keep the Euro artificially strong as they are the main exporter in the Eurozone. In addition they are buying up the bonds used by countries to raise captial and currently are getting 7% yield on 10 year bonds which all the experts say is unsustainable. The longer the Euro is propped up in this manner the longer the suffering economically within the current Eurozone.
By Germany leaving the Eurozone it would allow the Euro to find its correct level on the currency markets by natural devaluation, Spain would recover fastest as pre crisis the economy in Spain was in as good a shape as Germany, the other nations would recover more slowly, but they would return to 2008 levels faster. Once stabalised Germany could then return to the Euro at the correct level for its economic status, assuming they met the re-entry criteria.
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« Reply #4 on: June 19, 2012, 07:04:53 AM »

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