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Geithner Plan for Europe is last chance to avoid global catastrophe
the Telegraph (UK) ^ | 25 September 2011 | Ambrose Evans-Pritchard

Posted on 09/25/2011 1:53:55 PM PDT by Comparative Advantage

Europe, the G20, and the global authorities have one last chance to contain the EMU debt crisis with a nuclear solution or abdicate responsibility and watch as the world slides into depression, endangering the benign but fragile order that has taken shape over the last three decades.

The threat of cascading default, bank runs, and catastrophic risk must be taken off the table," said US Treasury Secretary Tim Geithner over the weekend.

"Sovereign and banking stresses in Europe are the most serious risk now confronting the world economy. Decisions cannot wait until the crisis gets more severe."

Euroland's dysfunctional arrangements are no longer a local affair. As the European Central Bank's Jean-Claude Trichet said in Washington, EMU is at the epicentre of a global sovereign debt crisis that risks engulfing all, and is more intractable than 2008 because governments themselves are now crippled.

China, India, Brazil and the world's rising powers will not escape lightly this time if leaders let events spiral out of control. European banks have lent $3.4 trillion to emerging markets (BIS data), or three quarters of external loans to these countries.

The International Monetary Fund warned last week that emerging markets face the risk of "sharp reversals" or even a "sudden stop" if there is further spill-over from Europe. This comes at a time when Asia and parts of Latin America are already in the topping phase of a credit boom, one of epic proportions in China where loans have doubled to almost 200pc of GDP over the last five years.

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: emu; eu; eunuchs; geithner; timmy

1 posted on 09/25/2011 1:53:58 PM PDT by Comparative Advantage
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To: Comparative Advantage

‘splain to me again, the blessings of a “Global Economy”.


2 posted on 09/25/2011 1:57:02 PM PDT by Oatka ("A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
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To: Comparative Advantage
Photobucket

3 posted on 09/25/2011 1:58:09 PM PDT by Dick Bachert (The 2012 election is coming. Seems we have MORE TRASH TO REMOVE!)
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To: Comparative Advantage
Geithner Plan for Europe...

Turbo Tax Timmy (T3) is on the case. Sorry Europe!

4 posted on 09/25/2011 1:58:38 PM PDT by FlingWingFlyer (Barry gives them $535 million and they take "the fifth" when asked where it went.)
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To: Comparative Advantage

What utter rubbish.

As if we can turn off Niagara Falls with a mandate from bureaucrats.


5 posted on 09/25/2011 1:58:38 PM PDT by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: Oatka

Their isn’t one. We are the economy mover. Obama’s Marxism is trying to crush it.


6 posted on 09/25/2011 2:00:03 PM PDT by eyedigress ((Old storm chaser from the west)?)
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To: Comparative Advantage
I cannot imagine anyone with a couple of brain cells paying one bit of attention to anything Geithner has to say about money, banking, or economy.
7 posted on 09/25/2011 2:01:48 PM PDT by Just mythoughts (Luke 17:32 Remember Lot's wife.)
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To: Comparative Advantage

Did Little Timmy check his numbers on Turbo Tax before telling the Europeans how to solve their problems?

(Pot, kettle)


8 posted on 09/25/2011 2:02:47 PM PDT by Rocky (REPEAL IT!)
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To: Oatka
Delaying the day of reckoning just ensures the final collapse will be bigger than if they fixed things now.

"Fixing things now" involves one major step: immediately stop all further credit to European governments, so that spending is limited to what tax revenues are brought in. Fire half the public employees, and tell the other half that they will not be retiring at 50, but more like 65 or 70, and telling current under-70 retirees to report back to work or lose all benefits.

Then machine-gun any rioters that are too upset with this.

9 posted on 09/25/2011 2:03:39 PM PDT by PapaBear3625 (When you've only heard lies your entire life, the truth sounds insane.)
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To: Comparative Advantage

These fools are the problem! They need to get the Hell out of the way and let Capitalism work.


10 posted on 09/25/2011 2:04:26 PM PDT by SatinDoll (NO FOREIGN NATIONALS AS OUR PRESIDENT!)
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To: Comparative Advantage

Since nothing Geithner’s done has helped at all, prepare for the global economic collapse to be even WORSE after he ‘helps.’


11 posted on 09/25/2011 2:06:50 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Oatka
Hey G!....


12 posted on 09/25/2011 2:09:05 PM PDT by Dallas59 (President Robert Gibbs 2009-2011)
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To: Comparative Advantage

So tax cheat Gietner who could not figure out turo tax which caused him to not pay his taxes is going to save the world, funny!


13 posted on 09/25/2011 2:10:53 PM PDT by ronnie raygun (t)
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To: Comparative Advantage
last chance to avoid global catastrophe.

Forgive me for being confused. Can someone tell me which global catastrophe this is the last chance to avoid?

Is it global catastrophe number 482,156, sub-catastrophe D dash 409, section 3? Or is it global catastrophe number 459,112 sub-catastrophe M, section A4?

14 posted on 09/25/2011 2:14:15 PM PDT by C210N (0bama, Making the US safe for Global Marxism)
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To: C210N

... and which last chance for that catastrophe? LC#1343998 (LC=Last Chance), LC#ab739gff, or LC#13232? Its hard to keep up with Cloward-piven crisis, last chances, catastrophes and the like...


15 posted on 09/25/2011 2:16:21 PM PDT by C210N (0bama, Making the US safe for Global Marxism)
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To: ronnie raygun
I know reading the article is against the rules, but the article does not actually match the headline:

Even if the €2 trillion "Geithner Plan" does get off the ground, it can do no more than buy time - not to be sneezed at, for sure. The root of the euro crisis is a 30pc intra-EMU currency misalignment between North and South. That structural flaw cannot be solved with debt guarantees or bank rescues.

16 posted on 09/25/2011 2:16:50 PM PDT by Borough Park
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To: Comparative Advantage
"Sorry Deutschland. History has conspired against you, again. You must sign away €2 trillion, and debauch your central bank, and accept 5pc inflation, or be blamed for Götterdämmerung. It is not fair but that is what monetary union always meant. Didn't they tell you?

This crap won't fly in Germany. The German people will unelect any coalition that votes for it and will eventually negate it...even if the current government signs on.

Germany has been burdened with these long, expensive payouts in the past...and it always ended badly.

They will not take the screwing this time.

17 posted on 09/25/2011 2:18:10 PM PDT by Mariner (War Criminal #18)
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To: Comparative Advantage

Basically, there are only two routes out of this situation: Japan or Iceland.

Iceland involves a quick collapse of the economy, where those who hold bad loans simply lose out whatever it is they hold. Very painful.

Japan involves a long and drawn out process, where the bad money slowly gets filtered out over a period of time. One method of doing this would be, as bonds mature, to sell more bonds, but at lower interest rates than previous bonds.


18 posted on 09/25/2011 2:19:18 PM PDT by Jonty30
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To: Comparative Advantage

Will he nudge them faster on their current course just as he has been doing to us?


19 posted on 09/25/2011 2:20:37 PM PDT by MtnClimber (Obama unemployment equals dependence on government.)
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To: Comparative Advantage
Together they hold $10 trillion in foreign bonds. If they agreed to rotate just 4pc of these holdings ($400bn) into Spanish, Italian, and Belgian debt over the next two years, they could offer a soothing balm.

The sticking point is that there is nothing in place that would stop the PIGS from running up another tab.

They had some definitions in place for admission to the Euro but those were almost universally ignored.

20 posted on 09/25/2011 2:21:54 PM PDT by glorgau
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To: eyedigress

So true. We are still the hub and that ain’t going to change unless we get another term of Obama or a comparable muslo- marxist - antithetical idiot.


21 posted on 09/25/2011 2:22:06 PM PDT by himno hero (Obamas theme...Death to America...The crusaders will pay!)
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To: Comparative Advantage

Why does this guy have any credibility? Why do people keep listening to him?

And what makes him think he has all the answers.

Answer. Because the people who think he has credbility are the people who listen to him which is why he thinks he has all the answers.

A big incestuous circle jerk.
Its the sequel to Deliverence


22 posted on 09/25/2011 2:22:44 PM PDT by barstoolblues (proud member of the sunzab itches club)
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To: Comparative Advantage

Why does this guy have any credibility? Why do people keep listening to him?

And what makes him think he has all the answers.

Answer. Because the people who think he has credbility are the people who listen to him which is why he thinks he has all the answers.

A big incestuous circle jerk.
Its the sequel to Deliverence


23 posted on 09/25/2011 2:23:03 PM PDT by barstoolblues (proud member of the sunzab itches club)
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To: Comparative Advantage

Fantastic.

Little Timmy has put on his SUPERMAN suit and will save the world!

I feel so secure.


24 posted on 09/25/2011 2:23:24 PM PDT by old curmudgeon
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To: Comparative Advantage

Had to go through the comments to figure this all out, and a better article is here;
http://www.telegraph.co.uk/finance/comment/8787064/Eurozone-leaders-comedy-of-errors-brings-monetary-union-to-the-brink.html

here’s one comment that tries to break it down;

elvishasleftthebuilding
Today 12:51 AM
Recommended by
38 people
There’s been so much posturing via the media this week, it’s hard for ordinary folk like me to figure out what’s really going on (or about to happen...)

Is far as I can tell:

1) Greece, Portugal and Ireland are already bankrupt, soon to be official.
2) Southern Europe will soon be bankrupt.
3) Northern Europe, UK, and US will then be a lot poorer.
4) The US is asking Germany to make sure it gets its money back, just like China was asking the same of the US last year.
5) Everyone has forgotten the the US is really bankrupt, as this won’t be official for some time yet.
6) When the US goes bankrupt, China will be a lot poorer.

Japan must figure in here somewhere too.


25 posted on 09/25/2011 2:25:05 PM PDT by Son House (The Economic Boom Heard Around The World => TEA Party 2012)
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To: barstoolblues
Its the sequel to Deliverance...

American taxpayer = Ned Beatty.

26 posted on 09/25/2011 2:28:07 PM PDT by who knows what evil? (G-d saved more animals than people on the ark...www.siameserescue.org.)
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To: Comparative Advantage

Another comment I liked;

Now how soon will it take for a political party to be formed in Germany which appeals to the their taxpayers ie we will make our own way in life and any growth will be shared with our own people. The old Deutschmark kept appreciating but in essence and relative terms it basically made the Germans wealthier, now that sounds much more tempting than a fiscal union in which you are forever subsidising not even your own brothers even cousins but in laws twice removed!


27 posted on 09/25/2011 2:28:10 PM PDT by Son House (The Economic Boom Heard Around The World => TEA Party 2012)
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To: Oatka

I know you know why and how the “global economy” came about.

But is the the mother of all examples of the law of unintended consequences.

If a nuclear war would destroy all economies and thus rule nuclear wars so destructive to all that no nation would consider it, it should have been obvious and certainly is today that any risk to the global economy would be unacceptable to any member of the civilized world.

The answer is that when this mess is all over, the USA should shun any effort to rebuild a global banking system. We should be totally independent. That independence would serve as a firewall against a lesser economy poisoning ours.


28 posted on 09/25/2011 2:31:17 PM PDT by old curmudgeon
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To: Comparative Advantage

last chance for the elites to delay dealing with the reality of the consequences their narcissism...


29 posted on 09/25/2011 2:31:29 PM PDT by mo
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To: Comparative Advantage
Hmmm! Seems to me that this marxist moron is the global catastrophy.
30 posted on 09/25/2011 2:32:32 PM PDT by SuperLuminal (Where is another agitator for republicanism like Sam Adams when we need him?)
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To: Comparative Advantage
Sorry Deutschland. History has conspired against you, again. You must sign away €2 trillion, and debauch your central bank, and accept 5pc inflation, or be blamed for Götterdämmerung. It is not fair but that is what monetary union always meant. Didn't they tell you?

That's what happens when you a nation without a currency, and a currency without a nation.

31 posted on 09/25/2011 2:42:04 PM PDT by Hugin ("A man'll usually tell you his bad intentions if you listen andY let yourself hear it"--- Open Range)
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To: who knows what evil?

with Algore as the banjo player.


32 posted on 09/25/2011 2:42:54 PM PDT by barstoolblues (proud member of the sunzab itches club)
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To: who knows what evil?

with Algore as the banjo player.


33 posted on 09/25/2011 2:43:07 PM PDT by barstoolblues (proud member of the sunzab itches club)
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To: mo

It’s all about saving Goldman Sachs and JPM-Chase from their bad loans. Geithner knows who he will be working for when BHO leaves office.


34 posted on 09/25/2011 2:44:41 PM PDT by Hugin ("A man'll usually tell you his bad intentions if you listen andY let yourself hear it"--- Open Range)
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To: Comparative Advantage

Another comment at this article;

petrifiedobserver
1 minute ago
‘Such a strategy must
slowly eat away at Italian and Spanish society’

Well, I guess it all seemed OK when the EU was investing billions into building nice shiny new high speed railways and motorways for them. Shame it didn’t work out.


35 posted on 09/25/2011 2:48:21 PM PDT by Son House (The Economic Boom Heard Around The World => TEA Party 2012)
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To: Comparative Advantage
Geithner Plan for Europe is last chance to avoid global catastrophe

In other words, Europe and the global economy are doomed.

36 posted on 09/25/2011 2:49:06 PM PDT by GreenHornet
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To: GreenHornet

I find it both sad and funny that the only thing that is stopping the world from progressing is Obamacare and the EPA.


37 posted on 09/25/2011 3:10:29 PM PDT by EQAndyBuzz (Sarahcuda in 2012. Nothing but Net!!!)
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To: Comparative Advantage

Catastrophes happen. Timmy was one of them.


38 posted on 09/25/2011 3:35:57 PM PDT by pallis
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To: Comparative Advantage

If Tim Geitner is your last hope then you’re screwed anyway, just relax and let it all collapse.


39 posted on 09/25/2011 3:45:13 PM PDT by Vince Ferrer
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To: Just mythoughts
Pardon, can't help myself.

I cannot imagine anyone with a couple of brain cells paying one bit of attention to anything Geithner has to say about money, banking, or economy ANYTHING.

40 posted on 09/25/2011 3:45:16 PM PDT by upchuck (Rerun: Think you know hardship? Wait till the dollar is no longer the world's reserve currency.)
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To: PapaBear3625

“Delaying the day of reckoning just ensures the final collapse will be bigger than if they fixed things now.”

You’re not supposed to give away the ending! ;>

True, though.


41 posted on 09/25/2011 3:57:12 PM PDT by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spiritui Sancto.)
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To: Comparative Advantage

“contain the EMU debt crisis with a nuclear solution”

Yeppers. That’ll do it.


42 posted on 09/25/2011 4:23:01 PM PDT by Brilliant
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To: Comparative Advantage

There is only one solution here - stop printing so much money and force governments to learn to live within their means. So far, the approach has been akin to treating a heroin junkie with methadone - at the end of the day, you still have an addict and the methadone has its own nasty side effects.


43 posted on 09/25/2011 4:27:34 PM PDT by dirtboy
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To: Comparative Advantage
Geithner Plan for Europe is last chance to avoid global catastrophe

Geithner!!??? That's sad. It means Europe and the US are hosed!!

44 posted on 09/25/2011 4:54:52 PM PDT by DustyMoment (Go green - recycle Congress in 2012!!)
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To: FlingWingFlyer
Turbo Tax Timmy (T3) is on the case. Sorry Europe!

They listen closely to him - just look at what he has accomplished in America.


45 posted on 09/25/2011 5:46:10 PM PDT by Iron Munro (Muslims who advocate, support, or carry out Jihad give the other 1% a bad name)
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