oh dear (tm): Europe tells Britain not to ask for help in a crisis

[Gonzo]

it seems idiotic to snub small donation to the fund that might be used to help yourself - it's like fire insurance really,

Are you sure that it would be a small donation? Throwing money at the problem is not the solution, in fact, it is only going to make things a whole load worse.

That is a lesson that gamblers learn early on.

Just about everybody that starts going to the horse races has the idea that because the favourites win about forty per cent of the time, to win money from the bookmakers all you need to do is bet on the favourite. If it doesn't win then increase your stake on the next one to regain your losses. Increase your stake on the next one if you have to. And the next one.

It doesn't work. Sooner or later there will be a losing streak that bankrupts you.

You could apply the same logic to the roulette wheel in a casino. Fifty per cent of the time it will land on red won't it? So just keep backing red and increasing your stake if you lose.

Attempting to plug a bottomless pit by throwing more and more cash into it is the sure fire way to have it all taken away from you. It is a lesson that Europe is about to learn the hard way.

[AtW]

Are you sure that it would be a small donation?

£10 bln apparently - that's small insurance considering UKs debt problem.

Thing is - that bailout for Europe will work and where do you think speculators go, retire??!?! No - they'll look for other targets and UK is perfect for it.

[Mich the Tester]

What a good way to build good relations with a new British government that includes a party which has been quite pro-EU up to now and there's barely been time for the PM and deputy PM to wipe their feet after walking into no 10.

Well done Mr Jouyet; ever wondered why most people in Europe are sick to the back teeth of this tulipe?

[Gonzo]

Thing is - that bailout for Europe will work

What makes you think that?

Do you think someone has carefully calculated that €x will resolve all the problems?

Or have they pulled an enormous figure out of the air and have their fingers crossed that it will do the trick?

[AtW]

What makes you think that?

Just like USA they have got advantage of having a reserve currency they can print to buy off debt that wasn't purchased: UK has not got reserve currency, it is also isolated and dependent on imports - much weaker position, very attractive to attack as it is a soft target

[Scary]

Thing is - that bailout for Europe will work and where do you think speculators go, retire??!?! No - they'll look for other targets and UK is perfect for it.

It did work, for about 4 hours.

[AtW]

It did work, for about 4 hours.

It will work to avoid bankrupcy of Greece because there are enough funds there to buy ALL their debt if necessary - if that ever happened then euro would have dropped by more than 3-5%.

[Scary]

It will work to avoid bankrupcy[sic] of Greece because there are enough funds there to buy ALL their debt if necessary - if that ever happened then euro would have dropped by more than 3-5%.

And what about Spain, Portugal, Italy and France? Where will their bailouts come from?

[Gonzo]

Just like USA they have got advantage of having a reserve currency they can print to buy off debt that wasn't purchased: UK has not got reserve currency,

There is nothing to stop Britain printing its own money and buying its own debt with it, and this is what it was doing last year with the Quantitative Easing.

Besides, if there was too much euro printing it would soon find that it was no longer a reserve currency.

That would not be too bad for the likes of Greece because it would provide the devaluation that would help them but it would mightily **** off the Germans as they saw their standard of living plummet as a result.

it is also isolated and dependent on imports - much weaker position, very attractive to attack as it is a soft target

Have you not noticed how much the GBP has devalued over the last eighteen months? It is already going on.

I think that Britain can survive without the imports (except electricity and gas but that is different madness, not a financial one).

[Churchill]

I think that Britain can survive without the imports (except electricity and gas but that is different madness, not a financial one).

With respect to the above, we may end up in a stronger position as the rest of Europe requires some hard currency.

With Reference to AtW, you may find the following to be of assistance...

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