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

[sasguru]

Italian debt costs shoot back into danger zone - Business News - Business - The Independent

as Greek reforms stall:

http://www.spiegel.de/international/...805975,00.html


2012 should be an interesting year, interesting as in the Chinese curse "May you live in interesting times".

Britain alone is stronger than Germany saddled with all these Club Meds, IMHO.

[AtW]

Britain alone is stronger than Germany saddled with all these Club Meds, IMHO.

The only reason why British gilts don't go up to 7-10% is because BoE prints money to buy them.

ECB refuses to do that as much as BoE does, which is why inflation in eurozone is 3% and in UK it's easily 7%.

So in conclusion in eurozone select Govts on select tranches of debt might have to pay 7% interest, however citizens of EU at large only pay 3% (via inflation), where as in UK the situation is reversed - everybody is robbed to pay for Govt debts via inflation.

[sasguru]

The only reason why British gilts don't go up to 7-10% is because BoE prints money to buy them.

ECB refuses to do that as much as BoE does, which is why inflation in eurozone is 3% and in UK it's easily 7%.

So in conclusion in eurozone select Govts on select tranches of debt might have to pay 7% interest, however citizens of EU at large only pay 3% (via inflation), where as in UK the situation is reversed - everybody is robbed to pay for Govt debts via inflation.

You posts seem to spout ill-digested gobbets of media soundbites that you don't understand.
You're talking about inflation, when most of South Europe is in a technical depression, you complete moron.


It's simple, the PIIGS have aspired to 1st world standards of living while having 3rd world output. Either they will be abandoned in which case the South of Europe becomes like the 3rd world or Germany pays for them on an ongoing basis.
Britain has made its own mistakes, but (1) doesn't have a bunch of parasites hanging on its coat tails and (2) is the only country in Europe with a track record of succesfully changing.

[AtW]

You're talking about inflation, when most of South Europe is in a technical depression, you complete moron.

So inflation does not matter, and it's all about depression?

[sasguru]

So inflation does not matter, and it's all about depression?

I knew you were thick, but not this thick.
Read some books on economic history, your ignorance makes you look like a fool

[AtW]

I knew you were thick, but not this thick.
Read some books on economic history, your ignorance makes you look like a fool

Are you saying inflation is not important? Or that depression is opposite of inflation?

[sasguru]

Are you saying inflation is not important? Or that depression is opposite of inflation?

Let's look at the UK. Look at inflation rates in the 70s. Then contrast and compare with the 30s.
Neither was good, but the economc effects were far worse under depression conditions, even in Britain which suffered less than most of teh Western world.
There are outlier countries (notably Germany) where both happened at once due to literal money printing, but generally in a depression economic activity is so muted that inflation cannot take root.
Looking at the UK experience, people go hungry in depressions, they don't in periods of high inflation.
So IMHO inflation is the lesser of the 2 evils.

[sasguru]

Let's look at the UK. Look at inflation rates in the 70s. Then contrast and compare with the 30s.
Neither was good, but the economc effects were far worse under depression conditions, even in Britain which suffered less than most of teh Western world.
There are outlier countries (notably Germany) where both happened at once due to literal money printing, but generally in a depression economic activity is so muted that inflation cannot take root.
Looking at the UK experience, people go hungry in depressions, they don't in periods of high inflation.
So IMHO inflation is the lesser of the 2 evils.

here's an interesting table: Note the deflation that happened during the depression, and double figure inflation in the 70s

Historical UK Inflation Rates (CPI) - Become debt free at WhatsTheCost.com

[mrdonuts]

and out in left field we have hungary, going ti ts up as we speak. Bankrolled by austria. Europe looks like one of those giant domino toppling events that used to be popular

[Jeff Maginty]

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