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View Full Version : Euro zone woes deepen



Ray Frechette Jr
11-29-2011, 02:42 AM
http://news.yahoo.com/eurozone-ministers-meet-amid-fears-euro-breakup-041312373.html

Ray Frechette Jr
11-29-2011, 02:58 AM
http://news.yahoo.com/europe-scrambles-save-euro-markets-surge-143952837.html

Waddie
11-29-2011, 03:09 AM
They really are between a rock and a hard place. The Euro is a currency union but not a fiscal union. Each separate country wants control over their own budgets and borrowing (fiscal) but all the Euro has to work with is money supply (monetary policy). So all they can do right now is crank up the printing presses and issue some Euro bonds. The Germans fear runaway inflation, and they're reluctant to take that risk without some controls put in place over the problem nations fiscal policy. Otherwise, even huge bailouts become temporary. I sure hope they can resolve it, but national leaders in general hate giving up fiscal control, it's how they win elections.

regards,
Waddie