DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - World bankers meet in Sydney as recovery fears intensify

**poekfpojoibien** · 08-03-2010, 05:32 AM

I'm not sure exactly why US shares are going down over this. We' are (Uncle Sam) still going to keep our AAA Moody's rating no matter what since we're the "currency of last resort" in international settlements, even if it's fiat.

The Euro is going to be put under extremely tight pressure because there's a huge bureaucratic mess with dealing with a Eurozone member that's about to default on its bonds. Greece will be bailed out. The Euro countries are going to pass a bunch of laws to make it happen. You better believe it. If they don't, then the Eurozone banking system will fracture and split apart, and the Euro currency will fall into a monetary crisis. Greece's debt is large enough to cause a cascade of problems all over Europe and leave France & Germany paying for all of the aftermath.

But the only US banks that are going to hurt badly are the ones with heavy exposure to EU bonds and EU-denominated assets.

No matter what happens, the Euro is going to devalue monetarily whether they like it or not.

Japan's debt is also screaming upwards so high and so fast that they might run into the same situation as well. I give them about another 2 years before they're in the same boat as Greece.

But I think we will be lending money to Japan to help them refinance their debt.

08-03-2010, 05:32 AM	#2
poekfpojoibien Join Date Oct 2005 Posts 501 Senior Member	I'm not sure exactly why US shares are going down over this. We' are (Uncle Sam) still going to keep our AAA Moody's rating no matter what since we're the "currency of last resort" in international settlements, even if it's fiat. The Euro is going to be put under extremely tight pressure because there's a huge bureaucratic mess with dealing with a Eurozone member that's about to default on its bonds. Greece will be bailed out. The Euro countries are going to pass a bunch of laws to make it happen. You better believe it. If they don't, then the Eurozone banking system will fracture and split apart, and the Euro currency will fall into a monetary crisis. Greece's debt is large enough to cause a cascade of problems all over Europe and leave France & Germany paying for all of the aftermath. But the only US banks that are going to hurt badly are the ones with heavy exposure to EU bonds and EU-denominated assets. No matter what happens, the Euro is going to devalue monetarily whether they like it or not. Japan's debt is also screaming upwards so high and so fast that they might run into the same situation as well. I give them about another 2 years before they're in the same boat as Greece. But I think we will be lending money to Japan to help them refinance their debt.
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