Sunday, 18 December 2011

A spiral argument

Why was Greece in so much trouble? Because she had debts which the markets thought she might have difficulty repaying.

Why is the euro in danger? Because it is the currency in Greece.

Why is Italy in danger? Because it is in the eurozone.

Why is the euro under threat? Because it is the currency in Greece and Italy.

Why is France in danger? Because it is in the eurozone.

Why is the euro near to collapse? Because it is the currency in France, Greece, Italy, Spain, Portugal ...

Why is the (French) managing director of the (US-based) International Monetary Fund predicting global economic disaster? Because the euro is under attack.

Apparently, economists in South-east Asia and the Far East, where nations are still enjoying growth of over 4%, are bemused by the apocalyptic language emanating from transatlantic discussions. They see our current economic difficulties as a local European & North American concern. One imagines that the oil sheikhs are equally unconcerned.

1 comment:

Frank H Little said...

I forgot to add: in the 1930s depression, even major industrial concerns went under, not just merchant bankers, and stock markets collapsed. That is not the case now.