Eurozone debt crisis

[Euler]

Government debt and their profligate spending is the underlying cause of the crisis. This is spured by the 'social responsibilites' of each government. Socialist policies are not a solution to the crisis but part of the cause.

[Euler]

Italian debt spiral calculator, A good example of why we need to work hard not to get in the same spiral!!!

http://graphics.thomsonreuters.com/11/0 ... 11_VF.html

[superfrank]

Government debt and their profligate spending is the underlying cause of the crisis. This is spured by the 'social responsibilites' of each government. Socialist policies are not a solution to the crisis but part of the cause.

Try telling that to Ed Balls and the circus of clowns that is the Labour party who have somehow managed to get away with an argument that we are "cutting too far, too fast" - and the really sad thing is that half the electorate believes them!

The austerity myth (The Spectator)
http://www.spectator.co.uk/coffeehouse/ ... myth.thtml

[SilentDave]

I don't understand why the government doesn't point out to the electorate that by "cuts" they mean they aren't increasing spending by as much as we were under Labour. Surely that would stop the "too far, too fast" arguments.
Or am I missing something?

[Iron]

I've never understood Labour's position.

Labour and the Tories both accept cuts are needed.

Labour say the government are going 'too far, too fast'. But they haven't explained why their cuts aren't 'too far, too fast'.

What's so magical about Labour's numbers, and at what point do cuts become 'too far, too fast'?

IMHO, it's just an empty slogan...

Jeff

[SilentDave]

It makes no sense to me. If you are copping the flak for making "cuts" you might as well make some cuts and hopefully reap some benefit. Otherwise be straight and point out that spending is still increasing.

[Iron]

The problem is that the Tories need to keep the Lib Dems on board.

Plus, Cameron is obsessed with making the Tories appear like a loveable, cuddly, liberal, progressive party, rather than a party of the rich, for the rich...

Before the current economic crisis, the Tories had actually committed themselves to matching Labour's spending plans for 2010/11!

Jeff

It makes no sense to me. If you are copping the flak for making "cuts" you might as well make some cuts and hopefully reap some benefit. Otherwise be straight and point out that spending is still increasing.

[superfrank]

It makes no sense to me. If you are copping the flak for making "cuts" you might as well make some cuts and hopefully reap some benefit. Otherwise be straight and point out that spending is still increasing.

+1

[Iron]

Comparitive European unemployment rates: http://www.google.co.uk/publicdata/expl ... l=en&dl=en

Interesting graph...

Jeff

[superfrank]

That's a very impressive effort from Germany especially given that they have not printed money and have therefore operated with a relatively strong currency (to £/$).

[superfrank]

Time to buy euros? - Stephanie Flanders
http://www.bbc.co.uk/news/15676704

either Germany has to bail them out indefinitely or the eurozone breaks apart

it's hardly news but at least people are facing up to the facts now.

Given that tptb have proved over the last few years that they are only interested in short-term solutions to prevent asset price falls then I expect the next step is going to be that the ECB starts printing - the German public will hate it, and so they should, but that's what's going to happen.

After that we'll start to see a similar situation in the EZ to the UK... the currency weakens, inflation rises and hence real disposable incomes fall and the situation gets compounded. The UK and US need a weaker euro and high EZ inflation like a hole in the head.

I can't see a solution to any of this now. Mainstream economists are hoping for some sort of economic miracle, still hoping that "getting the banks lending again" and money printing will solve all the problems. It ain't gonna happen.

[Iron]

Keep an eye on Nick Clegg: Brussels would love to install him as our PM - by Norman Tebbit

http://blogs.telegraph.co.uk/news/norma ... as-our-pm/

[superfrank]

Roubini Latest...
http://www.reuters.com/article/2011/11/ ... GU20111112

Summary
Italy Plan A probably won't work; bailout fund a joke; Portugal "is a basket case like Greece is".

Interview... http://www.reuters.com/article/video/id ... =224655061

[superfrank]

Spanish 10-year bond yields hit 6pc
http://www.telegraph.co.uk/finance/fina ... -live.html

[Iron]

If you're wondering why there's no mention of this on the BBC news website, it's because they think the Spanish bond auction isn't till tomorrow!

I tweeted Tim Weber, the guy who's in charge of the business section of the BBC news website, to ask why today's grim economic news wasn't in the top 3 headlines, and he told me:

'You probably mean the Italian bond yield. Spanish bond auctions are tomorrow and Thursday. Well, we did lead w jobs most of am'.

In my book, the fact Italy's bond yields are still sky high and Spain may be next in the firing line is slightly more important than news about the enquiry into phone hacking!

Jeff

Spanish 10-year bond yields hit 6pc
http://www.telegraph.co.uk/finance/fina ... -live.html