"If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace. We ask not your counsels or your arms. Crouch down and lick the hands which feed you. May your chains set lightly upon you, and may posterity forget that you were our countrymen."

Thursday, 13 May 2010

PIIGS Pushing Paper

Back to the overview: this graphic shows how the 'money' goes round and round and who owes how much paper money to whom. You can see that all of them 'owe' money to the UK:
Click to enlarge
"Robert Mundell, 'the father of the euro' and one of the world’s most respected economists, also views crises as the starting point for change. In a May, 2007 lecture, Mundell related, “International monetary reform usual becomes possible only in response to a felt need and the threat of a global crisis.”

"To the internationalist, national sovereignty is the overriding obstacle. In order for a Global Central Bank and world currency to exist, some other political arrangements will have to be formed. Robert Mundell understood this political problem when giving a lecture in 2003 titled, “The International Monetary System and the Case for a World Currency.” His response was frank: “A global single currency could not be achieved without a global government. To enforce a single currency would involve big problems of organization.”
One World, One Money

Everything is linked and nothing is without a purpose:

Sorry, I meant to post this link about Chris Huhne, the new Secretary of State for Energy & Climate Change, at the same time as the above, but I was distracted by older posts on Hegel, the Frankfurt School and the Fabians again.


  1. Knowing Italian business a little, Paralat, Air Italia, Fiat etc, I always has a sneaking feeling that Italy would be right up there if the keich ever hit the fan.

    Thanks for that Merrygoround GV.

    There seen to be two keys fro it, I can see.

    Portugal is the domino that would tip Spain and then possibly the who Euro.

    Italy would be the real target but, so long as it is France which is holding the paper, the Germans would be 100% obliged to back them, unless the wanted a re-run of WWII this time, unfortunately for France, in reverse.

    Greece going down would put pressure on France (100% that IS going to happen)

    UK is equally in the merde but can at least devalue.

    Any talk from the Frogs about the £STG being under attack soon and without any support from the Euro is also merde. They are whistling in the dark and hoping to deflect the markets which will not work. The market reads the numbers, not French gossip. It may well happen but not because of what the French are saying.

    Tin foil helmets on, set the PP3 battery protector level to maximum.

  2. I can't begin to express how rude it is to coin and to USE such a derogatory acronymic name to design our countries. There is no guarantee that inhabitants of countries wealthier in this time of history would be any superior to others. Careful with hubris!

  3. You seem like a panda in the know, Bugger. What would happen if the debts were just written off? According to the graphic those 5 countries between them owe the UK $230bn, Germany $705bn and France, the most exposed, $912bn. No wonder their politicians and media are squawking at the Brits.

    All the nonsense about saving Greece is just that, nonsense - the Greek bailout hasn't solved anything but just postponed the inevitable. Everyone's just throwing good money after bad to no long-term effect. As you say, it's a merry-go-round and the markets will dictate the terms. It's as if we're locked into some macabre danse de la mort with the bankers.

  4. Welcome, Lina. PIIGS is an accepted acronym for Portugal, Italy, Ireland, Greece, Spain. I don't know what you think it means or how you manage to twist it into something 'derogatory'.

  5. Lina

    I was going to respond to your post but GV beat e to it.

    It ay well also be called PIGGS

    Portugal, Italy, Greece, Great Britain ans Spain but, with respect to the Euro it is PIGS. It has nothing to do with a description of the inhabitants. I would bet there are a lot more pigs in Englandshire than you realise. I love, as a Scot, annoying GV!!!!!!

    OK if you want it is GIPS?

    or a stuttering GGIPS, but that would be politically incorrect?


    Forgot about Ireland, easily done in the mist of Guinness.


    Tin Foil Helmet Fashion


    How to ake one at home.


  7. If you're including Great Britain, Bugger, (rather than UK), that would make it PIIGGS - probably not much better in Lina's eyes.

    If it were the UK, it could be PIIGUS - I quite like that :-)

  8. How about PIEGIS


    Remember, Scotland has the oil.

  9. You're in a provocative mood today :) What about an answer to my question above about write-offs?

  10. Somebody would have to pay.

    As the debt is in the hands of banks, remember not the sovereign governments, the banks would be stuffed, yet again. Meltdown in the Grande Rue and Hauch Strasse.

    Governments would then have to bail out the banks, yet again and I would wager Italian debt is way above your figure.

    It is the European version of the thing that started in America, you know, according to Broon but, this tie it is serious. No one gets out of this with their underwear unsoiled, except Goldman Sachs, maybe and anyone else with a field for growing carrots and potatoes.

    Like my tin foil helmet links?

  11. You know, that Italy as well as Greece has an unquantified, maybe unquantifiable, amount of Credit Default Swap thingies, similar to wot brought down RBS, Lehman Bros, HBOS, etc.

    Similar but much bigger?

  12. Yes - loved the article, v funny but I was disappointed to learn that tin foil as such no longer exists due to a nwo conspiracy to rid the planet of it and replace it with inferior aluminium :-)

    As for the paper chase, it looks as though we have no choice but to ride the storm. Thanks, Bugger.

  13. King World News conducted an interesting interview on Special Drawing Rights - the de facto world currency that most people have barely heard of. It is in effect now.

    Rickard reckons that Greece will never be able to pay back its debts. So we end up financing them twice - first via the loan, then via a bailout. Nice.

  14. Hi Fausty, thanks for that. SDRs "backed by the full faith and credit of IMF member countries". If only I was a mathematical genius I could invent a complicated formula for making money by moving money around. I could call it the steurling or dolleu and no one would realise it was a scam until it was too late.

    AE-P has been saying the same things about Greece as well. The only people saying it will be alright are the politicians!


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