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Anorak | The euro continues to Fall Apart: six of 17 member screws over by the currency

The euro continues to Fall Apart: six of 17 member screws over by the currency

by | 6th, July 2012

SO. We had Ireland go bust when they made the single most stupid decision of the last decade: to guarantee all the debts of all of their banks. Those debts having been caused by too low an interest rate for the economy, that single interest rate that a single currency necessarily causes, as a result of being in the euro.

Portugal went bust and needed a bailout simply because the single interest rate made it too easy for the government to borrow oodles of cash to blow.

Greece has imploded as a result of being in the single currency.

Spain’s banks need a bailout as a result of that too low single interest rate leading to a boom and then the obvious bust. Very like Ireland except they’ve not been stupid enough to guarantee all the banks.

Cyprus has just admitted that it’s bust: at the moment it’s burning through the last little bits of a loan it got, bizarrely, from Russia last year.

Slovinia has just announced that it will almost certainly need a bailout: maybe the whole place, like Portugal or Ireland, maybe just the banks, like Spain so far.

So that is six out of the 17 members of the euro that have been screwed over by the currency and are now in various stages of being skint.

We only need another three to go and we’ll have a majority. Italy is in trouble if interest rates don’t come down, as is Belgium. And there are even whipsers about France.

That’s not bad for something only just a decade old really (and it only took 5 years in Slovenia). To screw to the wall half of the economies that joined the bloody thing.

When will the promoters of this idiocy finally admit that they were wrong?

 



Posted: 6th, July 2012 | In: Money Comments (4) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink