Forums
New posts
Forum list
Search forums
What's new
New posts
New resources
Latest activity
Trending Threads
Resources
Latest reviews
Search resources
FarmTV
Farm Compare
Search
Tokens/Searches
Calendar
Upcoming Events
Members
Registered members
Current visitors
New Resources
New posts
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Forum list
Search forums
Menu
Log in
Register
Navigation
Install the app
Install
More options
Contact us
Close Menu
Forums
Farm Business
Politics, Covid19 and Brexit
Brexit is destroying Britain
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="br jones" data-source="post: 8207265" data-attributes="member: 90824"><p>can going tinkle tinkle down the road</p><p>Another reality the UK’s re-join movement must face is that, at the core of the EU, the eurozone remains an ill-designed and extremely fragile, half-finished currency union. And, over recent weeks, there have been growing fears we could see a re-run of the 2011-12 eurozone crisis, which threatened the collapse of the entire single currency construct.</p><p>Almost exactly a decade ago, Mario Draghi, then ECB President pledged to do “whatever it takes” to save the euro from destruction. At the time, Greece was on the verge of stumbling out of the eurozone. Italy, the region’s third-largest economy, was so indebted that it too seemed destined to leave, perhaps sparking the implosion of monetary union – and spreading financial turmoil across the globe.</p><p>Today, Mario Draghi is Prime Minister of Italy – now even more in the red, with government debt exceeding 150pc of GDP. And there are warning signs on global bond markets that as inflation rises, and the ECB starts raising interest rates, <a href="https://www.telegraph.co.uk/business/2022/06/15/eurozone-emergency-another-debt-crisis-looms/" target="_blank">we could face a renewed euro-zone crisis</a> and related market turbulence.</p><p></p><p>Eurozone inflation is now 8.1pc and, as in the UK, heading for double-digits. All major economies are raising rates to push down on price pressures. The eurozone is so weak, though, the ECB’s rate remains minus 0.5pc – and is set to increase just 25 basis points in July, before possibly reaching 0pc in September.</p><p>The ECB is meanwhile propping up various over-indebted member states – including Italy, one of the world’s largest economies – who can’t depreciate their currencies to escape the economic doldrums. For years, in fact, the ECB has been using quantitative easing to hose down eurozone sovereign bond markets with newly-created money, buying up the debts of eurozone strugglers.</p><p>Now sitting on government bonds worth around €5 trillion (£4.3 trillion), the ECB is still making net purchases of over €30 billion a month.</p><p>As inflation rises, the spread between yields on German and Italian bonds, the two ends of the eurozone credit risk spectrum, is getting broader. It now stands at around 240 basis points, having more than doubled since the start of the year.</p><p>The Germans, Austrians and Dutch, deeply concerned about inflation and sick of bailing-out eurozone laggards, are determined to curtail ECB largesse. The “Club Med” bloc, led by France, wants the money-printing to continue, which is why Lagarde is issuing public warnings that eurozone financial markets are about to collapse.</p><p>The stage is indeed set for a re-run of the 2011/12 eurozone crisis. I wonder what the Rejoiners will make of that.</p></blockquote><p></p>
[QUOTE="br jones, post: 8207265, member: 90824"] can going tinkle tinkle down the road Another reality the UK’s re-join movement must face is that, at the core of the EU, the eurozone remains an ill-designed and extremely fragile, half-finished currency union. And, over recent weeks, there have been growing fears we could see a re-run of the 2011-12 eurozone crisis, which threatened the collapse of the entire single currency construct. Almost exactly a decade ago, Mario Draghi, then ECB President pledged to do “whatever it takes” to save the euro from destruction. At the time, Greece was on the verge of stumbling out of the eurozone. Italy, the region’s third-largest economy, was so indebted that it too seemed destined to leave, perhaps sparking the implosion of monetary union – and spreading financial turmoil across the globe. Today, Mario Draghi is Prime Minister of Italy – now even more in the red, with government debt exceeding 150pc of GDP. And there are warning signs on global bond markets that as inflation rises, and the ECB starts raising interest rates, [URL='https://www.telegraph.co.uk/business/2022/06/15/eurozone-emergency-another-debt-crisis-looms/']we could face a renewed euro-zone crisis[/URL] and related market turbulence. Eurozone inflation is now 8.1pc and, as in the UK, heading for double-digits. All major economies are raising rates to push down on price pressures. The eurozone is so weak, though, the ECB’s rate remains minus 0.5pc – and is set to increase just 25 basis points in July, before possibly reaching 0pc in September. The ECB is meanwhile propping up various over-indebted member states – including Italy, one of the world’s largest economies – who can’t depreciate their currencies to escape the economic doldrums. For years, in fact, the ECB has been using quantitative easing to hose down eurozone sovereign bond markets with newly-created money, buying up the debts of eurozone strugglers. Now sitting on government bonds worth around €5 trillion (£4.3 trillion), the ECB is still making net purchases of over €30 billion a month. As inflation rises, the spread between yields on German and Italian bonds, the two ends of the eurozone credit risk spectrum, is getting broader. It now stands at around 240 basis points, having more than doubled since the start of the year. The Germans, Austrians and Dutch, deeply concerned about inflation and sick of bailing-out eurozone laggards, are determined to curtail ECB largesse. The “Club Med” bloc, led by France, wants the money-printing to continue, which is why Lagarde is issuing public warnings that eurozone financial markets are about to collapse. The stage is indeed set for a re-run of the 2011/12 eurozone crisis. I wonder what the Rejoiners will make of that. [/QUOTE]
Insert quotes…
Verification
Post reply
Forums
Farm Business
Politics, Covid19 and Brexit
Brexit is destroying Britain
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
Accept
Learn more…
Top