Awol Posted November 23, 2010 Author Share Posted November 23, 2010 The whole central idea of single currencies occur in all aspects of business. Most of the deals I get involved with are dollar based deals and that is the way that business works in many areas. I see that there is no clamour for a removal of this as a way of working. The US Dollar is the world's reserve currency which gives it a massive advantage over any other fiat equivalent, but first and foremeost it is the currency of a country that is unified economically and politically, which is why it works. The Euro is not, which is why it doesn't. The Euro will not work in the longterm without political union, is that concept so hard to understand? The fact that the Euro and the EU are there, avoid the isolation impact that we saw when Lamont and his cronies screwed up the UK economy before. Yes, instead of a country going down in isolation we are now seeing a contagion moving across borders like a virus and the vector is the Euro itself. How that translates as a good thing to you is incomprehensible. The world has moved on massively and the interlinking between countries economies actually call for more integration rather than less. The whole idea of the artificial man made borders is slowly but surely being eradicated as the world becomes more and more one economy led. I'm sorry but this is just reads like 'one world government' drivel, Ian. National borders perform the same function that skin does in a biological sense, forming a protective barrier that keeps out things that would cause harm and insulating what is inside by setting the right conditions for prosperity according to it's specific environmental factors. Ireland's economy is different to say Germany's. Expecting the same interest rate to work for both is pure economic illiteracy. It is precisely because the national borders of those within the eurozone are no longer a membrane that can keep out things like dangerously cheap credit - dictated by the ECB and not national banks - that Ireland, Portugal et al. are in such deep shit. Link to comment Share on other sites More sharing options...
tonyh29 Posted November 23, 2010 Share Posted November 23, 2010 Most of the deals I get involved with are dollar based deals and that is the way that business works in many areas that is precisely the issue though Ian .. one shoe does not fit all ..You work for a US Company trading around the globe .. I bet if you were only selling stuff to Mrs Miggins pie shop based in the UK you would only deal in £'s besides which you've sort of killed your own argument as the $ is not the Euro so you are already talking about 2 currencies i.e not a single currency Oh PS Lamont .. His post ERM work was later consolidated by Bank of England independence in 1997 and "all the difficult and correct decisions that produced this happy state of affairs were taken and implemented by Norman Lamont, who thus showed himself, in his Mark 2 post ERM version, to be not only the most effective but also the bravest Chancellor since the War." and guess what Gordon said . "although it was certainly a political disaster, the case can be made that it was an economic triumph and marked the turning point in our macro-economic performance."" Link to comment Share on other sites More sharing options...
Meath_Villan Posted November 23, 2010 Share Posted November 23, 2010 Good aul brian refusing to hold by elections for months that would end his term/ now refusing to submit to the will of the people .....Were getting more german by the day Link to comment Share on other sites More sharing options...
JulieB Posted November 23, 2010 Share Posted November 23, 2010 What irks me about this is - where the hell did the UK govt suddenly come up with £7Bn quid from? If they can find this amount of money to prop up the Irish economy on the pretext they are a valued trading partner, why haven't the UK govt been finding similar amounts to help SMEs in this Country who are finding lines of credit impossible or unaffordable to tap into! What's happened to our own dreadful deficit all of a sudden? On a totally selfish note...if the Euro ever completely collapses & Sterling rallies against it...will I be able to pay the rob dog bank off over in Cyprus, with just a few quid? One can only hope! Link to comment Share on other sites More sharing options...
tonyh29 Posted November 23, 2010 Share Posted November 23, 2010 a bit about the money Link to comment Share on other sites More sharing options...
TrentVilla Posted November 23, 2010 Moderator Share Posted November 23, 2010 What irks me about this is - where the hell did the UK govt suddenly come up with £7Bn quid from? Borrowed it or so it would seem, so much for reducing the deficit. If the spin is to be believed though we could make a profit from this loan. I still struggle to see how this is any different at all to the previous government lending money to the UK banks which those on the right seem to say was so wrong. If they can find this amount of money to prop up the Irish economy on the pretext they are a valued trading partner, why haven't the UK govt been finding similar amounts to help SMEs in this Country who are finding lines of credit impossible or unaffordable to tap into! Perhaps some of the policies of this government are driven more by ideology than some would have us believe. Although I think there is little choice but to loan Ireland this money while they do have the choice not to do what you are suggesting. What's happened to our own dreadful deficit all of a sudden? It just got bigger. Link to comment Share on other sites More sharing options...
tonyh29 Posted November 23, 2010 Share Posted November 23, 2010 Borrowed it or so it would seem, so much for reducing the deficit If i give you £50 for nothing , I'm down £50 If i lend you £50 at an interest rate I get my £50 back with a bit on top just a thought .... Link to comment Share on other sites More sharing options...
CVByrne Posted November 23, 2010 Share Posted November 23, 2010 The Irish system was simple. Cut your tax to bribe big companies into setting up in Ireland, then spend the money on houses. Far more houses than you actually need. Pretty much nail on the head. The first part was a great idea the second part is what took the country down. The fact that so many people bought into this property ladder nonsense means half the country is at fault yet people want to blame someone else instead of the cold hard truth that almost everyone is at fault for the countries woes. Link to comment Share on other sites More sharing options...
snowychap Posted November 23, 2010 Share Posted November 23, 2010 What's happened to our own dreadful deficit all of a sudden? It just got bigger. Hasn't it decreased the deficit (as I assume that we'll be charging more in interest than it is costing us to borrow the money)? That's until we have to write off the actual value of the loan amount when Ireland defaults. :winkold: Link to comment Share on other sites More sharing options...
peterms Posted November 23, 2010 Share Posted November 23, 2010 It's an absolute disgrace. The Irish banks have taken full advantage of their govt's guarantee & continued their high risk operations regardless! They appear to have learnt absolutely ziltch since the collapse of Lehmans' With the news that one UK bank is to pay one of their CEOs £8M per annum...it's just appalling what's been allowed to happen, with the governments simply standing idly by, waiting to bail them out,..... while these mega financial instruments carry on regardless wrecking the whole global system....because they're simply too big to regulate. And while they pay themselves multi-million bonuses for doing the most appallingly poor job, they are making people homeless to recover debts of £600. The OFT says a number of banks are unfairly using 'charging orders' to force homeowners to sell their properties to cover debts of as little as £600 Link to comment Share on other sites More sharing options...
LondonLax Posted November 23, 2010 Share Posted November 23, 2010 What's happened to our own dreadful deficit all of a sudden? It just got bigger. Hasn't it decreased the deficit (as I assume that we'll be charging more in interest than it is costing us to borrow the money)? That's until we have to write off the actual value of the loan amount when Ireland defaults. :winkold: Indeed it doesn't increase the deficit. It's not borrowing £7b to spend on welfare or the government sector but it is a loan which the UK gets back with interest so it is actually an investment, an asset. The UK makes money off this deal unless the Irish default and refuse to pay back their loan monies... Link to comment Share on other sites More sharing options...
CVByrne Posted November 23, 2010 Share Posted November 23, 2010 What irks me about this is - where the hell did the UK govt suddenly come up with £7Bn quid from? If they can find this amount of money to prop up the Irish economy on the pretext they are a valued trading partner, why haven't the UK govt been finding similar amounts to help SMEs in this Country who are finding lines of credit impossible or unaffordable to tap into! What's happened to our own dreadful deficit all of a sudden? On a totally selfish note...if the Euro ever completely collapses & Sterling rallies against it...will I be able to pay the rob dog bank off over in Cyprus, with just a few quid? One can only hope! It is borrowed ib the international markets and Ireland pays the interest. So it does not effect the UK budget. The threat is Ireland defaulting and a possible slight increase in the UK's own bond spread. So no direct tax revenue goes to servicing this 7bln debt. Link to comment Share on other sites More sharing options...
TrentVilla Posted November 23, 2010 Moderator Share Posted November 23, 2010 Borrowed it or so it would seem, so much for reducing the deficit If i give you £50 for nothing , I'm down £50 If i lend you £50 at an interest rate I get my £50 back with a bit on top just a thought .... Perfectly capable of understanding that concept thanks. However if I owe £50 and then borrow £50 to lend you, until you pay me back I still owe more don't I. just a thought. Link to comment Share on other sites More sharing options...
tonyh29 Posted November 23, 2010 Share Posted November 23, 2010 Perfectly capable of understanding that concept thanks. why the attitude ? 2 more posters posted pretty much exactly the same thing in the thread , don't see them getting the same sort of response Link to comment Share on other sites More sharing options...
drat01 Posted November 23, 2010 Share Posted November 23, 2010 Irish News Papers :-) Link to comment Share on other sites More sharing options...
drat01 Posted November 23, 2010 Share Posted November 23, 2010 I'm sorry but this is just reads like 'one world government' drivel, Ian. National borders perform the same function that skin does in a biological sense, forming a protective barrier that keeps out things that would cause harm and insulating what is inside by setting the right conditions for prosperity according to it's specific environmental factors. Ireland's economy is different to say Germany's. Expecting the same interest rate to work for both is pure economic illiteracy. It is precisely because the national borders of those within the eurozone are no longer a membrane that can keep out things like dangerously cheap credit - dictated by the ECB and not national banks - that Ireland, Portugal et al. are in such deep shit. Bigger subject but thats nonsense Jon. Borders are man made so are not natural - the border between England and Scotland for instance is a line that was drawn up by man. You say that Ireland's economy is different to Germany but why is it? Is Irelands different to the UK? Do the people not basically have to live very much the same, those on the border between NI and the Republic are a matter of inches from each other so that makes all the difference does it? The simple facts are that the idea of single country belongs to the start of the last century rather than the start of this one. The World economy is the key issue, hence you see so many fluctuations and impacts on financial markets, else why did the Japanese markets have a dip because of the publicity surrounding Ireland? Your ideas are based on nothing more than the rhetoric of people like UKIP. The reality though is that the people of this country are part now of a lot bigger picture than they can ever accept. With inward looking like you are suggesting where do you stop, lets setup different budgets and taxes for regions within the UK, and then within England and then within the West Midlands and then within towns and then within estates and then within streets? You are also wrong about the dollar - that is an international currency that is used both within major commerce and down as far as the man on the street in many countries outside of just the US. You can bold as much as you like, - I love it when people shout to make their point - the Euro does not need political union in the sense that you are implying. Yes, instead of a country going down in isolation we are now seeing a contagion moving across borders like a virus and the vector is the Euro itself. How that translates as a good thing to you is incomprehensible. You are either deliberately missing the point to shout your anti-Euro stance or just being silly now. But assuming you actually believe what you are writing, I am right then in saying that you would rather that world economics is only helped by entities like the IMF? Interesting concept especially when you consider where most rational people understand the world economic issue to have arisen from . But I know that I will never change your anti_Europe stance so I will leave you to worry about the next headline Link to comment Share on other sites More sharing options...
Ads Posted November 23, 2010 Share Posted November 23, 2010 You say that Ireland's economy is different to Germany but why is it? I think it would be more interesting for you to explain why the Irish and the German economies are similar. Link to comment Share on other sites More sharing options...
TrentVilla Posted November 23, 2010 Moderator Share Posted November 23, 2010 Perfectly capable of understanding that concept thanks. why the attitude ? 2 more posters posted pretty much exactly the same thing in the thread , don't see them getting the same sort of response Perhaps you should look at the tone of your post compared to the other two. Link to comment Share on other sites More sharing options...
drat01 Posted November 23, 2010 Share Posted November 23, 2010 You say that Ireland's economy is different to Germany but why is it? I think it would be more interesting for you to explain why the Irish and the German economies are similar. Hmmm let me think Both in the EU Both part of the "west" Both have multi-nationals as part of its infrastructure Both do a great deal of trade with others around the world Both are impacted by world events Both have a reliance on High-Tech industries etc etc etc Irish Main industries steel, lead, zinc, silver, aluminium, barite, and gypsum mining processing; food, brewing, textiles, clothing; chemicals, pharmacology; machinery, rail transportation equipment, passenger and commercial vehicles, ship construction and refurbishment; glass and crystal; computer software, tourism German Main industries iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food and beverages, shipbuilding, textiles Now Ads, I am very interested to see your thinking why they are not alike. (and P.S. good to see you are a mod and tell us what we can and cannot post) Link to comment Share on other sites More sharing options...
Ads Posted November 23, 2010 Share Posted November 23, 2010 When I get one from you that answers my question, then I'll give you one. Link to comment Share on other sites More sharing options...
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