Italy's 10 year bond rate past 7% again ...

[AtW]

Let's look at the UK. Look at inflation rates in the 70s. Then contrast and compare with the 30s.

I've lived through 2100% per annum inflation rate in 1992 back in Russia, next year was much easier - only around 700% inflation if my memory serves me right.

[sasguru]

I've lived through 2100% per annum inflation rate in 1992 back in Russia, next year was much easier - only around 700% inflation if my memory serves me right.

That's my point exactly. You didn't starve.
Depression is a whole different ball game.

[PAH]

How can people afford to keep paying more and more for everyday essentials whilst their income remains flat?

By spending less on non essentials. They're only in the tulip if their income doesn't cover the mortgage/rent, food, gas/leccy/water.

Everything else is optional, resulting in cut backs in those areas.

Those offering the optional stuff end up cutting their prices or restructuring their offerings to temp customers back or they go out of business.

So we end up with biflation where some things are rising in price but others are deflating.

If essential items start eating too much of the income they reach a ceiling price where people either find cheaper alternatives (causing the overall price to drop, as seen in houses when buyers stop buying) or try to force price reductions through protests/strikes/riots.

So next year will be interesting as there's an economic war going on with the home team (captained by House) battling the foreigners (captained by Tat from China, and you thought Bob was bad ).

[AtW]

That's my point exactly. You didn't starve. Depression is a whole different ball game.

No, we did not starve because they rationed bread like in WW2 - food stamps had to be shown to buy essentials: bread, eggs, butter and even 1 bottle of vodka per month

Anyway, people will starve if they can't afford to buy food - this is usually driven by inflation.

[russell]

The Euro crisis will be resolved in 2012 says gollum, hurray

German finance minister Wolfgang Schaeuble says eurozone problems will be solved in 2012 - Telegraph

[Doggy Styles]

The Euro crisis will be resolved in 2012 says gollum, hurray

German finance minister Wolfgang Schaeuble says eurozone problems will be solved in 2012 - Telegraph

That's a relief!

The truth is, the eurozone will always be a problem and eurozone governments know it. With the exception of federalists who want a single European government, they are nearly all questioning the wisdom of the common currency, and wishing they were back in the UK's position.

[AtW]

and wishing they were back in the UK's position.

That's little englander's wishful thinking that is not based on reality: nobody serious so far from respective euro zone members seriously said they wish they were like Britain - the vote to support euro zone in which UK was the only country against clearly shows that.

Oh, and those wishing for destruction of euro zone should check out what UK's treasury' going to do in this case - restrict money flows, yeah - that would be great when your banks tell you that they are not allowed to move your money somewhere you rightfully want.

[Doggy Styles]

That's little englander's wishful thinking that is not based on reality: nobody serious so far from respective euro zone members seriously said they wish they were like Britain - the vote to support euro zone in which UK was the only country against clearly shows that.

You are so naive!

[BlasterBates]

The Italian bond auction went well:

Italian bond auction provides temporary relief

Italy raised 9.0 billion euros ($11.6 billion) at a rate of 3.251 per cent

It´s pretty clear that slowly the Euro crisis is dissipating, other than the columns of the Daily Telegraph which lives in a fantasy world inhabited by no-one else, where by the Euro can´t possibly survive another month.

Good solutions aren´t usually "golden bullets" produced with a huge fanfare, they´re worked through slowly over time.

[Doggy Styles]

"Never mind. It will probably blow over during the next few weeks." - Blaster, Nov 2011