Euro Collpase?

[sailsmen]

Hope their wrong. Euro collpase equals World War.

Sunday 27 November 2011

UK Telegraph
Prepare for riots in euro collapse, Foreign Office warns
British embassies in the eurozone have been told to draw up plans to help British expats through the collapse of the single currency, amid new fears for Italy and Spain.
The Treasury confirmed earlier this month that contingency planning for a collapse is now under way

By James Kirkup, Deputy Political Editor

10:00PM GMT 25 Nov 2011

As the Italian government struggled to borrow and Spain considered seeking an international bail-out, British ministers privately warned that the break-up of the euro, once almost unthinkable, is now increasingly plausible.

Diplomats are preparing to help Britons abroad through a banking collapse and even riots arising from the debt crisis.

The Treasury confirmed earlier this month that contingency planning for a collapse is now under way.

A senior minister has now revealed the extent of the Government’s concern, saying that Britain is now planning on the basis that a euro collapse is now just a matter of time.

“It’s in our interests that they keep playing for time because that gives us more time to prepare,” the minister told the Daily Telegraph.


Greece has seen several outbreaks of civil disorder as its government struggles with its huge debts. British officials think similar scenes cannot be ruled out in other nations if the euro collapses.

Diplomats have also been told to prepare to help tens of thousands of British citizens in eurozone countries with the consequences of a financial collapse that would leave them unable to access bank accounts or even withdraw cash.

Fuelling the fears of financial markets for the euro, reports in Madrid yesterday suggested that the new Popular Party government could seek a bail-out from either the European Union rescue fund or the International Monetary Fund.

There are also growing fears for Italy, whose new government was forced to pay record interest rates on new bonds issued yesterday.

The yield on new six-month loans was 6.5 per cent, nearly double last month’s rate. And the yield on outstanding two-year loans was 7.8 per cent, well above the level considered unsustainable.

Italy’s new government will have to sell more than EURO 30 billion of new bonds by the end of January to refinance its debts. Analysts say there is no guarantee that investors will buy all of those bonds, which could force Italy to default.

The Italian government yesterday said that in talks with German Chancellor Angela Merkel and French President Nicolas Sarkozy, Prime Minister Mario Monti had agreed that an Italian collapse “would inevitably be the end of the euro.”

The EU treaties that created the euro and set its membership rules contain no provision for members to leave, meaning any break-up would be disorderly and potentially chaotic.

If eurozone governments defaulted on their debts, the European banks that hold many of their bonds would risk collapse.

Some analysts say the shock waves of such an event would risk the collapse of the entire financial system, leaving banks unable to return money to retail depositors and destroying companies dependent on bank credit.

The Financial Services Authority this week issued a public warning to British banks to bolster their contingency plans for the break-up of the single currency.

Some economists believe that at worst, the outright collapse of the euro could reduce GDP in its member-states by up to half and trigger mass unemployment.

Analysts at UBS, an investment bank earlier this year warned that the most extreme consequences of a break-up include risks to basic property rights and the threat of civil disorder.

“When the unemployment consequences are factored in, it is virtually impossible to consider a break-up scenario without some serious social consequences,” UBS said.

[1 Bad Merc]

Amazing how this whole thing is collapsing like a house of cards. The British sure look smart now for never joining on the Euro currency deal.

I remember when they were setting up the Euro as the primary currency and they told all the member countries that they had to give up all their gold reserves to the central bank and the English balked.

I remember the British PM saying that once the gold leaves England they would never get it back again! How right on the money was that prediction.

If the Euro crashes then we need to prepare for a global currency meltdown/ nightmare as it is going to hit us very hard to. Remember all those American companies that are now International Corporations and have investments all over the world -alot of their investments are in Europe.

[kernie]

"Hope their wrong, Euro collapse equals world war"


Who are they? Certainly not any world war talk in the article. ????

[RF Overlord]

The British sure look smart now for never joining on the Euro currency deal.

I was just thinking the same thing as I read the article. The pound sterling may be the only European currency left...

[F8LBITEva]

wow scary ****!

[BODYMAN]

It will become a worst case scenario if it a happens from here out on a time frame of 1 to 2 days. Problem is this like now are own are proped up value on paper. Similar to the Stock Market all those companies are simply valued anymore by there own co's financial officers with little if any real serious regulation in any form. This makes me worry how China may react to our ever increasing debt with them, They got a stake in europe also so it will hurt them to so pressure could be on us from them. Yea as for gold well we really dont have that anylonger & goverment will not let that out of the bag simply cause they know the dollar would end up in value that is slightly higher then the peso rather then whats it is and has been for basically ever. Then lets think about Russia. They now hold something like 65% of world gold, China surely has massed a fair percentage also. The most and only positive I can see (and still not good) is that the North American continent has some of the worlds largest natural resources so hopefully we would be able to rebuild ourselves although that would take a truly long time

[TooManyFords]

Amazing how this whole thing is collapsing like a house of cards. The British sure look smart now for never joining on the Euro currency deal.

I remember when they were setting up the Euro as the primary currency and they told all the member countries that they had to give up all their gold reserves to the central bank and the English balked.

Maybe they're just hiding the fact that they don't have any gold left and wouldn't that have been embarrassing!

[BODYMAN]

Maybe they're just hiding the fact that they don't have any gold left and wouldn't that have been embarrassing!

Same reason why we will never admit to the same thing. Dollar is associated with gold standard, that being said we in several ways can partly control the price of gold. Its all some crazy stuff. Cant imagine the things we know nothing about that goes on. It kinda sucks though cause even if major disaster is averted life as we have known it will be lost. Things will change

[sailsmen]

Gold and the dollar are not in any way related. Oil and the dollar are realted since oil is exclusively traded in the dollar.

[yjmud]

The gold standard was removed by FDR in 1933

[N40GL]

Unfortunately, this is the consequence of creating a multi-country currency, yet leaving each country the ability to set its own currency policies locally.

[babbage]

buy gold now.

[sailsmen]

You will need ammo, water and food before you will need gold.

[1 Bad Merc]

Gold technically should never lose it's value -when we are lighting our furnaces with dollar bills we should be able to barter for goods with the gold we have. I have been working on an emergency fund of gold coins just in case of just such a situation. Probably a good idea to stock up on the essentials-food, water, ammo, etc.

Who knows what will happen if people realize their money is worthless and wont buy them food to eat.

[Bigdogjim]

Gold and the dollar are not in any way related. Oil and the dollar are realted since oil is exclusively traded in the dollar.

This is true until the US dollar is removed from the standard of world money.

The US dollar replace the UK's pound in 1956.