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by Ashraf Laidi
Posted: Feb 20, 2010 5:00
Comments: 30765
Posted: Feb 20, 2010 5:00
Comments: 30765
Forum Topic:
EUR
Discuss EUR in this thread
usd/chf to possible 8990 but will return upswing..
holding usd/chf L8 at 9100 even... will add above 9080 both sides moving up...
current 9056
best looking trader Sir Ignore...
I see Lagards is worrying about insufficient IMF funds now.
http://www.telegraph.co.uk/finance/financialcrisis/8786665/Multi-trillion-plan-to-save-the-eurozone-being-prepared.html http://www.reuters.com/article/2011/09/25/imf-idUSS1E78N02620110925
"Germany Fin Min Scaeuble says euro bonds would destroy fiscal discipline in eurozone.."
decision making process. The fourth is the media are either mouthpiece of the respective governments or of unions or of entrepreneurs but none is independent.
This kind of multi-cultural over-national democracy had failed to weather headwinds and will go under in heavy storm.
Thus the only choice left is to repair the birth defects. The recent proposal of Eurobonds lite, that only the so far remaining triple-A rated members issue Eurobonds, is doable, if Germany quits balking at it. A good start. Otherwise, Euro will collapse.
how can Eurobonds exist without fiscal union?
If you don't have fiscal union (ie a common taxation and spending system that is shared by all the participating countries) then all that is happening is that the more fiscaly prudent countries end up subsidizing the Greece of this world so there would not be any difference.
And fiscal union is about as far away as you can get: I can't see any government that is going to allow Brussels/Strasburg to decide its level of taxation and even fewer citizens who would be happy with that.
Each country's level of taxation is finely tuned by each political party in power to make sure that they don't tax too much (or the people get angry) and that they spend enough (so that people feel their taxes are well spent).
Name me one political party that is willing to abdicate setting the level of taxes on nits citizen and that same party will be the one losing the election.
With that in mind, I see Eurobonds as non-starters and simply a smokescreen to mask the unsolvable eurozone problems and allow the current governments to kick the can down the road and hope for a miracle (that will not arrive lol).
That's my view and I'm quite happy to discuss it as I don't pretend that I can grasp everything