Spain in state of total emergency

[sasguru]

The difference is, cretin, that Germany export more than they import where as UK imports more than it exports.

Germany:
Exports: $1.408 trillion (2011 est.)
Imports: $1.198 trillion (2011 est.)

UK:
Exports: $495.4 billion (2011 est.)
Imports: $654.9 billion (2011 est.)

Source: CIA Factbook for both countries.

I hope you do know the difference between losing money and earning it?

no.....it's bad because the UK has a current account deficit of 10%, where as Germany has a balanced budget, it doesn't spend more than it takes in.

If the UK doesn't get it's current deficit down, debt grows by a huge amount each year. Think Greece, because the UK's deficit is the second worse in Europe, topped only be Greece. Of course it has some leeway it can potentially hemorrage for about 3 years before the global capital markets turn off the taps.

You guys don't understand economics.
Current account deficit doesn't necessarily translate into increased debt totals.
The clue is that if you think the UK's current a/c deficit is 10% of GDP ayear and that translates to total debt, that is what its debt is growing by a year. It's not.
Your home work is to find out why, but sadly I doubt either of you has the intellectual capacity.

HTH.

[DodgyAgent]

The main weakness of the Eurosceptic argument is that it's based more on emotion rather than economic reasoning, i.e. not wanting to be dominated by Germany.

But what you have to determine, is now that the Euro is in place what is the best way forward.

Sure...you can break up the Euro and it will work, but now is not the time to do it.

I think these emotional view points are driven very much by tabloid newspapers.

I cannot believe that you have said this. The Euro was a political creation there was no sound economic basis upon which it was created. It was the dream of the politicians (the left). Those of us in the UK have been proved utterly right in saying it would not work. The reasons it has failed or is failing is all to do with practical economics.
As for dominance of Germany this is exactly what Europe is getting if the economies of all the EURO countries are to survive.
So not only have the eurosceptics been proved right about the economic viability/logic of the Euro they are about to be proved right about the dominance of Germany.
My god you are an idiot!

[sasguru]

My god you are an idiot!

I think he's taken the crown of CUK Village Idiot in this therad alone.

[DodgyAgent]

I think he's taken the crown of CUK Village Idiot in this therad alone.

Even the most enthusiastic nihilistic idiots that created and championed the Euro have never said anything like this.

[sasguru]

Even the most enthusiastic nihilistic idiots that created and championed the Euro have never said anything like this.

What makes me laugh is his naive and simplistic idea of economics (a bit like AtW, only much worse). It must be sad to be so limited intellectually

[BlasterBates]

I cannot believe that you have said this. The Euro was a political creation there was no sound economic basis upon which it was created. It was the dream of the politicians (the left). Those of us in the UK have been proved utterly right in saying it would not work....

The problems in Europe are a debt crisis.

Try reading the other posts in the thread.

You'd be very naive indeed to believe there wouldn't have been a crisis without the Euro.

Italy (and that goies for the rest of club med) has historically always had higher debt than the UK or US. Are you saying they wouldn't have been indebted?

Of course they would.

Do you honestly believe that European banks wouldn't have all been lending and fuelling the debt?

Of course they would.

Do you honestly believe that if Greece, Spain, Portugal, Hungary and few others hadn't all keeled over with huge debts that this wouldn't have caused a crisis?

Of course there would have been.

Do you believe that Irish banks wouldn't have bet the farm on US credit?

Of course they would have.


The point I'm making, which hopefully you'll understand (unless you really are as thick as pig sh*t) is that there is a general debt crisis that goes far beyond the Euro, and has more to do with the exuberance capital markets in fuelling unsustainable property booms and sovereign debt.

[DodgyAgent]

What makes me laugh is his naive and simplistic idea of economics (a bit like AtW, only much worse). It must be sad to be so limited intellectually

I think Spod manages to live a fullfilling life.

[sasguru]

The problems in Europe are a debt crisis.

Try reading the other posts in the thread.

You'd be very naive indeed to believe there wouldn't have been a crisis without the Euro.

Italy (and that goies for the rest of club med) has historically always had higher debt than the UK or US. Are you saying they wouldn't have been indebted?

Of course they would.

Do you honestly believe that European banks wouldn't have all been lending and fuelling the debt?

Of course they would.

Do you honestly believe that if Greece, Spain, Portugal, Hungary and few others hadn't all keeled over with huge debts that this wouldn't have caused a crisis?

Of course there would have been.

Do you believe that Irish banks wouldn't have bet the farm on US credit?

Of course they would have.


The point I'm making, which hopefully you'll understand (unless you really are as thick as pig sh*t) is that there is a general debt crisis that goes far beyond the Euro, and has more to do with the exuberance capital markets in fuelling unsustainable property booms and sovereign debt.

Classic pub bore argument. Repeating things doesn't make them right.
here's the thing BB, you're thick, intellectually challenged, not the sharpest tool, however you want to describe it.

HTH

[DodgyAgent]

The problems in Europe are a debt crisis.

Try reading the other posts in the thread.

You'd be very naive indeed to believe there wouldn't have been a crisis without the Euro.

Italy (and that goies for the rest of club med) has historically always had higher debt than the UK or US. Are you saying they wouldn't have been indebted?

Of course they would.

Do you honestly believe that European banks wouldn't have all been lending and fuelling the debt?

Of course they would.

Do you honestly believe that if Greece, Spain, Portugal, Hungary and few others hadn't all keeled over with huge debts that this wouldn't have caused a crisis?

Of course there would have been.

Do you believe that Irish banks wouldn't have bet the farm on US credit?

Of course they would have.


The point I'm making, which hopefully you'll understand (unless you really are as thick as pig sh*t) is that there is a general debt crisis that goes far beyond the Euro, and has more to do with the exuberance capital markets in fuelling unsustainable property booms and sovereign debt.

The point is that the presence of the Euro removed the checks and balances that normally stop countries from running up too much debt. It also encouraged countries to run up debt by enabling Germany to sell cheap products to countries that were able to borrow cheaply. had there been no Euro then Germany's products would have become more expensive and countries like Greece and Italy would have had price and cost advantages to encourage them to invest in manufacturing. Because the Euro created a level playing field of costs everyone left manufacturing to the Germans, so when it all goes belly up these countries have nothing to produce to encourage growth.
You have no grasp whatsoever of the chain of what has happened since the introduction of the Euro.

[BlasterBates]

The point is that the presence of the Euro removed the checks and balances that normally stop countries from running up too much debt. It also encouraged countries to run up debt by enabling Germany to sell cheap products to countries that were able to borrow cheaply. had there been no Euro then Germany's products would have become more expensive and countries like Greece and Italy would have had price and cost advantages to encourage them to invest in manufacturing. Because the Euro created a level playing field of costs everyone left manufacturing to the Germans, so when it all goes belly up these countries have nothing to produce to encourage growth.
You have no grasp whatsoever of the chain of what has happened since the introduction of the Euro.

So how did Hungary, Iceland, the UK, and the US end up the sh*t then?

and why are Estonia, Finland, Slovakia, Malta, countries which are completely different to Germany not in the sh*t then? They have the Euro as well.