Why is the UK immune from bankruptcy?

[BlasterBates]

Yup that's the impression I have, solve by inflation, so house prices will probably stay the same in GBP but the pound will devalue. Mind you everybody else is devaluing, so it won't devalue against other currencies, which probably means commondities are set to rocket.

[scooterscot]

Newsnight last night was full of doom an gloom again. The 3 distinguished economists (Will Hutton, Irwin Stelzer and Gillian Tett) were speaking of contagion, financial crisis and questioning whether the Euro would survive. Portugal may be next. I think they were pretty much in agreement though that inflation is acoming, with more printing globally to come.

I love the all this talk about the imminent collapse of the Euro by the UK. Change the f$%@£ing station guys, talk about blatant self interest, could be any more obvious? I wonder if any of those economists have spent 5 minutes living outside our little island..

The comment left by someone on the guardian sums it up for me:

I'm a British citizen, who has lived in the Eurozone now for nearly 6 years, and have travelled widely on business in most EU countries. Its only the UK that keeps talking up the imminent collapse of the Euro. From my perspective, its desparate wishful thinking from petty Europhobes.

I remember the British smugness as the value of the Euro started to drop against the pund and doller at the time of its first creation. That was short lived.

In 2005, £1 was worth 1.47 Euros
Today, £1 is 1.17 Euros

Even with the recent crisis, this does not look to be changing very much. Its the pound that's looking desparate. Travelling around Europe, its inconceivable that the Euro could disappear. The convenience for travel and trade is just too great. Its only when I travel to non-Eurozone countries that I experience the pain of paying banks a fee to change my money. The Euro is here to stay.

[Sysman]

We have our own central bank that is able to print money. This option is not available for the PIIGS to take unilaterally. It has consequences but it can buy us time IF we have leaders that have the intellect to act for the greater good.

So is it a case of when rather than if?

[Ignis Fatuus]

How does that work? If somebody outside Britain lends Britain some money but does it in GBP, and then Britain deliberately devalues GBP, in effect that's defaulting on part of the loan. Why would anyone lend Britain money in GBP?

Because it's still worth it. And secure: the UK has never defaulted on debt. No organisation has a longer history of debt without default.

[Mich the Tester]

I love the all this talk about the imminent collapse of the Euro by the UK. Change the f$%@£ing station guys, talk about blatant self interest, could be any more obvious? I wonder if any of those economists have spent 5 minutes living outside our little island..

The comment left by someone on the guardian sums it up for me:

Good comments. Up here in the Germanic regions of Euroland, it doesn't look like complete collapse is imminent. German business is doing well, Dutch and Belgian businesses are doing fine out of that, even though the politicians are doing their best to wreck everything. Compared to 2009, things look quite good.

[DodgyAgent]

I love the all this talk about the imminent collapse of the Euro by the UK. Change the f$%@£ing station guys, talk about blatant self interest, could be any more obvious? I wonder if any of those economists have spent 5 minutes living outside our little island..

The comment left by someone on the guardian sums it up for me:

It has been a while since the pro Euro simpletons have raised their heads above the parapet. It was never an economic decision for countries to join the Euro in the first place. The sceptic economists on our "little Island" have now been proved right as the Euro faces collapse (or at least fundamental change).

Nor is it a bad thing that the £ has fallen against the Euro in fact quite the opposite. We have been ruled by labour who have squandered zillions and this has reflected itself with our currency.

We are now in a position to ride the recession because we have our own currency. the Greeks, the Irish and Spanish are stuffed because they cannot reduce the costs of their goods and services to escape recession. The Germans thought that they had put an end to cheap competition from other EU countries by imposing the Euro on them (along with all the other EU laws) and they are now paying the price by having to bail out the other Euro economies. It will serve the Krauts right when they find themselves having to bail out Portugal and Spain.

Irelands only hope for recovery now is that its low corporation tax will make the economy grow enough to pay its debts .. dont hold your breath. had Ireland not joined the Euro it would never have had low interest rates to fuel their property bubble

The simpleton mind of the pro Euro brigade that sees the Euro as nothing more than a simple means of exchange or is p****d off because his £ is worth less has no idea of the reality of basic economics.

[Mich the Tester]

It has been a while since the pro Euro simpletons have raised their heads above the parapet. It was never an economic decision for countries to join the Euro in the first place. The sceptic economists on our "little Island" have now been proved right as the Euro faces collapse (or at least fundamental change).

Nor is it a bad thing that the £ has fallen against the Euro in fact quite the opposite. We have been ruled by labour who have squandered zillions and this has reflected itself with our currency.

We are now in a position to ride the recession because we have our own currency. the Greeks, the Irish and Spanish are stuffed because they cannot reduce the costs of their goods and services to escape recession. The Germans thought that they had put an end to cheap competition from other EU countries by imposing the Euro on them (along with all the other EU laws) and they are now paying the price by having to bail out the other Euro economies. It will serve the Krauts right when they find themselves having to bail out Portugal and Spain.

Irelands only hope for recovery now is that its low corporation tax will make the economy grow enough to pay its debts .. dont hold your breath. had Ireland not joined the Euro it would never have had low interest rates to fuel their property bubble

The simpleton mind of the pro Euro brigade that sees the Euro as nothing more than a simple means of exchange or is p****d off because his £ is worth less has no idea of the reality of basic economics.

There is talk in Northern Europe of splitting the Euro into a hard Germanic euro for those countries that can pay their bills and a cheapo Club Med euro for those who can't. Trouble is, it's banks from the northern countries who've lent quajillions of euros to the south and would see the value of those loans diminished.

[scooterscot]

Irelands only hope for recovery now is that its low corporation tax will make the economy grow enough to pay its debts .. dont hold your breath. had Ireland not joined the Euro it would never have had low interest rates to fuel their property bubble

ECB to Ireland. "Yes it's OK have as many billions as want. Of course we don't mind you undermining other euro countries with you low corp tax while borrowing money from us"

Let me tell you something it was not a low interest rates that fuelled irresponsible lending.

And all the well eurodisney is actively trying to install long term plans for stability the Charles Osbourne (AKA Dougal)
Is trying to think of other plans that don't involve hitting the printing press button..

[Doggy Styles]

Newsnight last night was full of doom an gloom again. The 3 distinguished economists (Will Hutton, Irwin Stelzer and Gillian Tett) were speaking of contagion, financial crisis and questioning whether the Euro would survive. Portugal may be next. I think they were pretty much in agreement though that inflation is acoming, with more printing globally to come.

So yet again those with houses are sitting pretty.

Except me, I've paid for mine.

[AtW]

Let me tell you something it was not a low interest rates that fuelled irresponsible lending.

Low rates contributed - BoE should have increased rates to stop house bubble at least 10 years ago, there was a limit to how far LTV ratios would go even in this crazy economy.