Bail Or No Bail – How Much Trouble Is The Euro In?

The big news out of Europe this week was the announcement of a 50% write-down of Greek bonds held by European banks in another massive bailout of the embattled country. Problems with this approach began to surface quickly. The biggest and most challenging is the temporary injunction issued by the German Constitutional Court on October 28 barring any deliberations by a panel created by the German parliament. The injunction prevents the panel from green-lighting decisions about using taxpayers funds in the bailout program. Widespread expectations are that the current German Chancellor, Angela Merkel, will lose power as a result of her support for the bailout program.

The Eurozone created several economic asymmetries between Germany and other European countries. Germany is an export powerhouse replete with high wages and low production costs. The euro imposed a monetary straightjacket on all countries, irrespective of what monetary policy was best for which country. Low interest rates set by the European Central Bank (ECB) wreaked havoc by sparking real estate bubbles and debt-financed consumption. Now the PIIGS (Portugal, Ireland, Italy, Greece and Spain) are dealing with the consequences while Germany is being essentially forced to foot the bill.

On top of all the public and private debts accumulated thanks to the ECB’s low-rate policy, there are vast amounts of monies promised to aging beneficiaries of Europe’s social welfare programs. The number of active workers will shrink, and the number of retirees will rise, hampering the ability of governments to fulfil their obligations. Northern Europe has been subsidizing Southern Europe’s excess consumption for years. The PIIGS countries have run large current account deficits throughout the existence of the Eurozone. These structural pressures may simply be too much to bear.

No matter how much bailout money is committed to the program, unless massive structural changes occur, the Eurozone economy will continue to deteriorate. The big danger is that the wealthier northern countries like Germany will start experiencing problems due to contagion spreading from the PIIGS in the south. Ultimately, the Eurozone is doomed to experience a break-up, likely precipitated by Germany or Greece leaving the euro. Once that happens, the economies of all European countries will likely enter a prolonged readjustment phase. In other words, a new recession, which will likely drag the rest of the world down into it as well. The inevitable end result will occur sooner or later whether the participating countries like it or not.

My name is Nisha Sharma. I represent a site called ClearDebt.co.uk. I love to write, especially about travel, finance and business advice. Feel free to visit our site for more information on IVA and credit card debt

5,145 Responses to Bail Or No Bail – How Much Trouble Is The Euro In?
  1. download thor ragnarok free
    October 20, 2018 | 7:34 pm

    Really informative post.Much thanks again.

  2. Joye Paramore
    October 21, 2018 | 2:34 am

    Very niceExcellentGoodVery good postarticlewrite-upblog post. I certainlydefinitelyabsolutely loveappreciate this websitethis site. Keep it upContinue the good workStick with itKeep writingThanks!

  3. waterproof sex toy collection
    October 21, 2018 | 4:53 am

    always a major fan of linking to bloggers that I really like but do not get quite a bit of link love from

  4. intelleral review
    October 21, 2018 | 3:57 pm

    Thanks again for the post. Want more.

  5. situs judi poker online penipu
    October 21, 2018 | 4:15 pm

    Hello there I am so grateful I found your blog, I
    really found you by mistake, while I was researching on Yahoo for something else, Nonetheless I am here now
    and would just like to say cheers for a incredible post
    and a all round enjoyable blog (I also love the theme/design), I don’t have time to read it all at the minute but I have bookmarked it
    and also added in your RSS feeds, so when I have time I will be back to read a lot more, Please do keep
    up the fantastic job.

  6. naga poker
    October 21, 2018 | 6:05 pm

    always a massive fan of linking to bloggers that I appreciate but dont get a lot of link adore from

  7. Tobias Morley
    October 21, 2018 | 6:50 pm

    Its like yousuch as you readlearn my mindthoughts! You seemappear to understandto knowto grasp so mucha lot approximatelyabout this, like yousuch as you wrote the booke-bookguideebooke book in it or something. I thinkI feelI believe that youthat you simplythat you just couldcan do with somea few p.c.percent to forcepressuredrivepower the message househome a bita little bit, howeverbut other thaninstead of that, this isthat is greatwonderfulfantasticmagnificentexcellent blog. A greatAn excellentA fantastic read. I’llI will definitelycertainly be back.

  8. attorney
    October 21, 2018 | 8:58 pm

    I simply had to thank you so much yet again. I do not know the things I might have implemented without these points shown by you over that concern. It had been a very daunting concern for me, nevertheless taking a look at your specialised fashion you managed that took me to weep over happiness. I am thankful for the advice and as well , sincerely hope you comprehend what a great job that you are doing educating people today with the aid of a web site. More than likely you’ve never come across all of us.

  9. Roofing
    October 21, 2018 | 11:31 pm

    Hi, i think that i saw you visited my weblog so i came to “return the favor”.I am trying to find things to enhance my site!I suppose its ok to use some of your ideas!!

  10. Manifestation Magic Reviews
    October 22, 2018 | 2:52 am

    Thank you for another wonderful article. Where else could anyone get that kind of info in such a perfect way of writing? I have a presentation next week, and I am on the look for such info.

  11. Ramon
    October 22, 2018 | 8:17 am

    Gracias por compartir este tipo de contenido.vps.

  12. Yeast Infection No More Review
    October 22, 2018 | 10:29 am

    This blog is definitely entertaining and factual. I have picked up a bunch of interesting advices out of this blog. I ad love to come back again and again. Thanks a bunch!

Trackbacks/Pingbacks
  1. parts of a clock
  2. fire pit rings
  3. life coach for teens
  4. Warming trends
  5. parenting classes online
  6. natural gas fire pit kit
  7. Building management services
  8. clock building videos
  9. Confident Parenting
  10. best parenting coach
  11. build your own fire pit
  12. Clock repair parts
  13. click here
  14. time movement hands
  15. warming trends reviews
  16. parental coaching
  17. build your own fire pit
  18. outdoor clocks for business
  19. replacement parts for clocks
  20. teenage life coaching
  21. parenting classes near me
  22. clock kits
  23. clock repair videos
  24. Clock repair parts
  25. Confident Parent Coach
  26. warming trends catalog
  27. clock dials
  28. metal clock dials
  29. online parenting resource
  30. clock accessories
  31. metal hands
  32. warming trends catalog
  33. click Here
Leave a Reply


Wanting to leave an <em>phasis on your comment?

Trackback URL http://mynextbuck.com/bail-or-no-bail-how-much-trouble-is-the-euro-in/trackback/

Bail Or No Bail – How Much Trouble Is The Euro In?

The big news out of Europe this week was the announcement of a 50% write-down of Greek bonds held by European banks in another massive bailout of the embattled country. Problems with this approach began to surface quickly. The biggest and most challenging is the temporary injunction issued by the German Constitutional Court on October 28 barring any deliberations by a panel created by the German parliament. The injunction prevents the panel from green-lighting decisions about using taxpayers funds in the bailout program. Widespread expectations are that the current German Chancellor, Angela Merkel, will lose power as a result of her support for the bailout program.

The Eurozone created several economic asymmetries between Germany and other European countries. Germany is an export powerhouse replete with high wages and low production costs. The euro imposed a monetary straightjacket on all countries, irrespective of what monetary policy was best for which country. Low interest rates set by the European Central Bank (ECB) wreaked havoc by sparking real estate bubbles and debt-financed consumption. Now the PIIGS (Portugal, Ireland, Italy, Greece and Spain) are dealing with the consequences while Germany is being essentially forced to foot the bill.

On top of all the public and private debts accumulated thanks to the ECB’s low-rate policy, there are vast amounts of monies promised to aging beneficiaries of Europe’s social welfare programs. The number of active workers will shrink, and the number of retirees will rise, hampering the ability of governments to fulfil their obligations. Northern Europe has been subsidizing Southern Europe’s excess consumption for years. The PIIGS countries have run large current account deficits throughout the existence of the Eurozone. These structural pressures may simply be too much to bear.

No matter how much bailout money is committed to the program, unless massive structural changes occur, the Eurozone economy will continue to deteriorate. The big danger is that the wealthier northern countries like Germany will start experiencing problems due to contagion spreading from the PIIGS in the south. Ultimately, the Eurozone is doomed to experience a break-up, likely precipitated by Germany or Greece leaving the euro. Once that happens, the economies of all European countries will likely enter a prolonged readjustment phase. In other words, a new recession, which will likely drag the rest of the world down into it as well. The inevitable end result will occur sooner or later whether the participating countries like it or not.

My name is Nisha Sharma. I represent a site called ClearDebt.co.uk. I love to write, especially about travel, finance and business advice. Feel free to visit our site for more information on IVA and credit card debt

5,145 Responses to Bail Or No Bail – How Much Trouble Is The Euro In?
  1. download thor ragnarok free
    October 20, 2018 | 7:34 pm

    Really informative post.Much thanks again.

  2. Joye Paramore
    October 21, 2018 | 2:34 am

    Very niceExcellentGoodVery good postarticlewrite-upblog post. I certainlydefinitelyabsolutely loveappreciate this websitethis site. Keep it upContinue the good workStick with itKeep writingThanks!

  3. waterproof sex toy collection
    October 21, 2018 | 4:53 am

    always a major fan of linking to bloggers that I really like but do not get quite a bit of link love from

  4. intelleral review
    October 21, 2018 | 3:57 pm

    Thanks again for the post. Want more.

  5. situs judi poker online penipu
    October 21, 2018 | 4:15 pm

    Hello there I am so grateful I found your blog, I
    really found you by mistake, while I was researching on Yahoo for something else, Nonetheless I am here now
    and would just like to say cheers for a incredible post
    and a all round enjoyable blog (I also love the theme/design), I don’t have time to read it all at the minute but I have bookmarked it
    and also added in your RSS feeds, so when I have time I will be back to read a lot more, Please do keep
    up the fantastic job.

  6. naga poker
    October 21, 2018 | 6:05 pm

    always a massive fan of linking to bloggers that I appreciate but dont get a lot of link adore from

  7. Tobias Morley
    October 21, 2018 | 6:50 pm

    Its like yousuch as you readlearn my mindthoughts! You seemappear to understandto knowto grasp so mucha lot approximatelyabout this, like yousuch as you wrote the booke-bookguideebooke book in it or something. I thinkI feelI believe that youthat you simplythat you just couldcan do with somea few p.c.percent to forcepressuredrivepower the message househome a bita little bit, howeverbut other thaninstead of that, this isthat is greatwonderfulfantasticmagnificentexcellent blog. A greatAn excellentA fantastic read. I’llI will definitelycertainly be back.

  8. attorney
    October 21, 2018 | 8:58 pm

    I simply had to thank you so much yet again. I do not know the things I might have implemented without these points shown by you over that concern. It had been a very daunting concern for me, nevertheless taking a look at your specialised fashion you managed that took me to weep over happiness. I am thankful for the advice and as well , sincerely hope you comprehend what a great job that you are doing educating people today with the aid of a web site. More than likely you’ve never come across all of us.

  9. Roofing
    October 21, 2018 | 11:31 pm

    Hi, i think that i saw you visited my weblog so i came to “return the favor”.I am trying to find things to enhance my site!I suppose its ok to use some of your ideas!!

  10. Manifestation Magic Reviews
    October 22, 2018 | 2:52 am

    Thank you for another wonderful article. Where else could anyone get that kind of info in such a perfect way of writing? I have a presentation next week, and I am on the look for such info.

  11. Ramon
    October 22, 2018 | 8:17 am

    Gracias por compartir este tipo de contenido.vps.

  12. Yeast Infection No More Review
    October 22, 2018 | 10:29 am

    This blog is definitely entertaining and factual. I have picked up a bunch of interesting advices out of this blog. I ad love to come back again and again. Thanks a bunch!

Trackbacks/Pingbacks
  1. parts of a clock
  2. fire pit rings
  3. life coach for teens
  4. Warming trends
  5. parenting classes online
  6. natural gas fire pit kit
  7. Building management services
  8. clock building videos
  9. Confident Parenting
  10. best parenting coach
  11. build your own fire pit
  12. Clock repair parts
  13. click here
  14. time movement hands
  15. warming trends reviews
  16. parental coaching
  17. build your own fire pit
  18. outdoor clocks for business
  19. replacement parts for clocks
  20. teenage life coaching
  21. parenting classes near me
  22. clock kits
  23. clock repair videos
  24. Clock repair parts
  25. Confident Parent Coach
  26. warming trends catalog
  27. clock dials
  28. metal clock dials
  29. online parenting resource
  30. clock accessories
  31. metal hands
  32. warming trends catalog
  33. click Here
Leave a Reply


Wanting to leave an <em>phasis on your comment?

Trackback URL http://mynextbuck.com/bail-or-no-bail-how-much-trouble-is-the-euro-in/trackback/