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View Full Version : Do Euro Bonds = USE?



edao
14-08-11, 17:01
"Issuance of Eurobonds (by Eurobonds I mean euro-denominated bonds issued by the ECB and guaranteed by all the member nations, not the traditional understanding of ‘Eurobond’, which is a bond issued in a non-domestic currency): This would spread the credit risk around the eurozone and, due to the currency in which the bonds are denominated and the underlying support from member nations, the market is likely to react positively to them.

Needless to say, the core countries (especially Germany, which has been firmly against the idea for a while now) would not be happy – and rightly so. It is like guaranteeing your prodigal sibling’s debts. It doesn’t give the wayward sibling any incentive to mend their ways. The proposal is likely to spark fierce political debate and public protest in the core nations and would be a tough one to get a consensus on." source
(http://www.risk.net/credit/opinion/2101083/-eurobond-eurozone-s-hope)
"The German government no longer rules out agreeing to the issuance of euro zone bonds as a measure of last resort to save the single currency, conservative newspaper Welt am Sonntag reported on Sunday." article reuters (http://www.reuters.com/article/2011/08/14/us-eurozone-bonds-germany-idUSTRE77D10T20110814)

"Mr Tremonti advocated proposals for the eurozone to issue new bonds backed by all 17 member countries, so-called euro bonds, which can be used to finance loans to financially stretched member states." bbc article (http://www.bbc.co.uk/news/business-14520895)

Do you think the issuing of Eurobonds will be the beginning of a Federal Europe?

Reinaert
14-08-11, 19:33
I will never spend 1 euro in bonds, shares, options or whatever capitalistic bubble money.

Hmm.. PERIOD.

I have an account on a special bank, that is investing in good projects in poor countries.
It doesn't give much profit, but it works in the long run.

And what is money? You don't have it with you when you die.
Make the world a better place.
Invest in a better world.
Invest in peace and prosperity.

There will never be a Federal Europe.
We Dutch can't even agree with each other, the Belgians even less!
Even the left side political parties in The Netherlands are fighting each other, the right wing parties even more between each other! It's a hopelessly divided situation.

Forget about it!

Cimmerianbloke
25-08-11, 03:45
Eurobonds guaranteed by states that are overendebted and on the verge of bankrupcy. Only an idiot would buy them. The price of gold skyrockets, there is a reason: gold is the only valuable currency on the market. Currencies are paper money, just like Monopoly...

LeBrok
25-08-11, 08:29
It's only psychology, mirage, tradition, or whatever. Gold have same fictional value as paper money. Can you eat gold or live in it? Same with paper money. If you oversupply gold, value of gold will fall down. If you keep printing money, its value will drop too.
For some reason people think that buying something rare like gold will save or make them money. Mostly they are buying because others are buying gold too.
I'm not arguing, it's just a thought.

Antigone
25-08-11, 11:25
Over the last year or so the Chinese have sold about 60% of US bonds or whatever it was they had there and bought gold instead. So I suppose there must be some value in investing in gold. Not that I have a clue about any of this stuff of course, but if the Chinese recognised the US was hitting rock bottom that long ago why didn't anyone else?

Cimmerianbloke
26-08-11, 00:49
The Chinese have so many US bonds that they could bring the US economy down if they would sell them in one go or swap them for euros or gold. Why do you think they allowed themselves to openly criticize the US borrowing policy and told Obama to start living within his means. They have the US (and the world's...) economy by the [email protected], and they know it.

edao
26-08-11, 19:03
The Chinese have so many US bonds that they could bring the US economy down if they would sell them in one go or swap them for euros or gold. Why do you think they allowed themselves to openly criticize the US borrowing policy and told Obama to start living within his means. They have the US (and the world's...) economy by the [email protected], and they know it.

It would seem that the Americans are determined to undermine Europeans efforts to stabalize the Eurozone. The rating agencies are American and are on the payroll of the large american investment banks. The former heads of these investment banks practically run Washington. When Eurozone countries are being bailedout they talk about a European contribution and the IMF. A large chunk of that IMF bailout will be from the US. Being outside the Euro and having a country heavily in your debt offers alot of political power, and America are clinging desperately to as much power they can. Remeber that Goldman Sachs were instrumental in helping Greece hide their huge debt problem until it was too late.

Reinaert
26-08-11, 21:54
The Chinese have so many US bonds that they could bring the US economy down if they would sell them in one go or swap them for euros or gold. Why do you think they allowed themselves to openly criticize the US borrowing policy and told Obama to start living within his means. They have the US (and the world's...) economy by the [email protected], and they know it.

Not true.
The Chinese are also dependent on the value of the American dollar.
If the dollar goes up in thin air, the American debt to the Chinese also vanishes.

To say it like it is.. The Chinese and Americans have each other grabbing the balls.
If the Chinese squeeze a bit, the Americans let go drop the dollar into a deep pit.

Advantage for the USA.

Americans don't have to squeeze Chinese balls. China is on a fascist road to nowhere.
Own people working like hell for very low wages.
Meanwhile some opportunists get very rich in China.
It may take some years and than China will see a new revolution..
Against the fascist capitalist opportunists that rule China today.

Free Tibet!
Free China!

edao
05-10-11, 08:39
Italy credit rating slashed by Moody's from Aa2 to A2

The ratings agency blamed a "material increase in long-term funding risks for the euro area", due to lost confidence in eurozone government debts.
Despite Rome's low current borrowing needs, and low private-sector debt levels in Italy, Moody's said market sentiment had turned against the euro.


source (http://www.bbc.co.uk/news/business-15176947)




Should we all withdraw all our money from the banks and start stuffing it under the mattress?:petrified:

Mzungu mchagga
05-10-11, 14:56
Should we all withdraw all our money from the banks and start stuffing it under the mattress?:petrified:

A friend of mine just moved into the forests of Michigan with a gun and cans of pre-cooked food. That's what we probably all should do!

edao
23-11-11, 17:03
EU chief Barroso unveils controversial eurobonds plan

European Commission (EC) president Jose Manuel Barroso has unveiled plans for eurobonds,
in the face of German opposition.

http://www.bbc.co.uk/news/business-15854116

Germany are not coming out well from this crisis as leaders of Europe in my opinion.

Cimmerianbloke
26-11-11, 12:32
Barroso's career is over anyway, Merkel and Sarkozy can not stand him anymore. The sad truth is that he doesn't want to be remembered as the one in charge when Europe collapsed. Germany should be the one country ruling de facto or at least overseeing the financial health of the Union, but you all surely read in your respective countries articles about "German Europe" and how Merkel achieves with politics what Hitler hasn't done with his armies... Better for governments to blame Germany than admitting their mistakes...

Canek
29-11-11, 15:18
Why should the northern europeans pay for the southerner corruption, lazyness and fiesta? It wouldn't be fair.