Socrates goes

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Discussion

Derek Smith

Original Poster:

45,881 posts

250 months

Thursday 24th March 2011
quotequote all
http://itn.co.uk/c1ca675f511aa82e7c56d4b478cb7663....

So what does that mean for the Euro and who will be next?

Eric Mc

122,292 posts

267 months

Thursday 24th March 2011
quotequote all
Pity he isn't called Archimedes. Then we could say Portugal had been screwed by Archimedes.

Puggit

48,541 posts

250 months

Thursday 24th March 2011
quotequote all
Pound crashing against the Euro:



But the dollar strengthening:


stitched

3,813 posts

175 months

Thursday 24th March 2011
quotequote all
There is only so much regional instability the eurozone can take, now I'm no financial genius but I would imagine the stronger economies are pondering a return to a national currency.
I think Germany has too much invested in the Euro working to be the first to pull out but others maybe not.
Wonder what procedures are in place for a country to return to a now defunct currrency? I mean how on earth would you peg the value of a French franc when it's been out of the money market for so long?

Fittster

20,120 posts

215 months

Thursday 24th March 2011
quotequote all
How's the yellow shiny stuff getting on?

stitched

3,813 posts

175 months

Thursday 24th March 2011
quotequote all
Double post, sorry.

Puggit

48,541 posts

250 months

Thursday 24th March 2011
quotequote all
Fittster said:
How's the yellow shiny stuff getting on?
Up, and up, and up...



George Osborne yesterday said:
"We have already decided to rebuild our foreign currency reserves, and we intend to purchase a range of high quality assets. But with the price of gold at a record high we won't be able to replenish the reserves sold at a record low."

Fittster

20,120 posts

215 months

Thursday 24th March 2011
quotequote all
The interesting thing is which nation is going to the first to default (and not by inflation).

These bailouts still leave countries with levels of debt they can't hope to cope with.


wolves_wanderer

12,415 posts

239 months

Thursday 24th March 2011
quotequote all
Puggit said:
Pound crashing against the Euro:



But the dollar strengthening:

Poor british retail sales is the reason for that.

Fittster

20,120 posts

215 months

Thursday 24th March 2011
quotequote all
Puggit said:
George Osborne yesterday said:
"We have already decided to rebuild our foreign currency reserves, and we intend to purchase a range of high quality assets. But with the price of gold at a record high we won't be able to replenish the reserves sold at a record low."
I never really understand why governments hold gold, don't they believe in their own fiat currencies?

If they want to hold assets besides currencies, why limit to gold?

Fittster

20,120 posts

215 months

Thursday 24th March 2011
quotequote all
anonymous said:
[redacted]
Once you go down the path of sovereign defaults I'd be surprised if it's limited to EU members, Japan and the US have more debt than they could ever pay off.

stitched

3,813 posts

175 months

Thursday 24th March 2011
quotequote all
anonymous said:
[redacted]
It seems such an insane system, all these countries with unlimited credit cards racking up obscene bills.
Where did it start? I recall reading of war loans taken out by Royal families in napoleonic times, have we just carried on racking it up since then?
Seriously when was the UK last debt free?

Kwai Chang Caine

6,613 posts

188 months

Thursday 24th March 2011
quotequote all
stitched said:
Where did it start? I recall reading of war loans taken out by Royal families in napoleonic times, have we just carried on racking it up since then?
It's been happening even longer than that. IIRC it was a soveriegn debt issue that finished off Imperial Spain.

ralphrj

3,547 posts

193 months

johnfm

13,668 posts

252 months

Thursday 24th March 2011
quotequote all
Kwai Chang Caine said:
stitched said:
Where did it start? I recall reading of war loans taken out by Royal families in napoleonic times, have we just carried on racking it up since then?
It's been happening even longer than that. IIRC it was a soveriegn debt issue that finished off Imperial Spain.
[blind chinaman mode on]Ahhh, glasshopper. You must realise that as the sparrow wakes, the bull must sharpen its blunt horns...[/blind chinaman mode off]

stitched

3,813 posts

175 months

Thursday 24th March 2011
quotequote all
ralphrj said:
Ta fella, very interesting.
1997-2009 we doubled a debt which historically only went sharply up during a major war.
2009-2014 it will double again.
This leads me to speculate that certain spending has skyrocketed in the period 1997 to now.
FFS stop spending on my kids credit cards.

Digga

40,478 posts

285 months

Thursday 24th March 2011
quotequote all
wolves_wanderer said:
Puggit said:
Pound crashing against the Euro:



But the dollar strengthening:

Poor british retail sales is the reason for that.
If you're correct that retail sales have caused this, and if the drop is due to inflation, as suggested here; Reuters, then this is just the start.

Inflation is going to continue, at least for the remainder of the year and much of the inflation has yet to find its way to retail customers.

wolves_wanderer

12,415 posts

239 months

Thursday 24th March 2011
quotequote all
Digga said:
wolves_wanderer said:
Puggit said:
Pound crashing against the Euro:



But the dollar strengthening:

Poor british retail sales is the reason for that.
If you're correct that retail sales have caused this, and if the drop is due to inflation, as suggested here; Reuters, then this is just the start.

Inflation is going to continue, at least for the remainder of the year and much of the inflation has yet to find its way to retail customers.


Don't forget that those charts are very short term, this is a slightly longer view and we are generally in an uptrend since the start of the year. The major currencies all have their own problems and seem to be in a race to see who is the weakest.

Edit my chart isn't very clear but each bar represents 4 hours and the chart goes back to around christmas.

Puggit

48,541 posts

250 months

Thursday 24th March 2011
quotequote all
WW - that's the GBP:USD chart. I've shown GBP:EUR and USD:EUR charts wink

wolves_wanderer

12,415 posts

239 months

Thursday 24th March 2011
quotequote all
Puggit said:
WW - that's the GBP:USD chart. I've shown GBP:EUR and USD:EUR charts wink
hehe So it is, here are the same charts for the what you were actually talking about rather than what I assumed you were talking about wink


GBP EUR

EUR USD