Please explain to me - euro collapse

[sleep envy]

Can anyone explain to me the repercussions of the doomsday senario if euro were to collapse?

[anonymous-user]

Jordan's tits will explode.

Edited by anonymous-user on Tuesday 30th November 21:59

[FourWheelDrift]

Would one of the scenarios involve countries going back to their old currencies at highly inflated rates trying to get their economy back on track (eg 1 Irish Punt = equivalent of 100€) so that they can then trade against the pound and dollar at more favourable rates which would screw us if they owed us billions. Each country hiking up their new currency rates against the pound & dollar trying to wipe out their Euro debt until it reaches a state of hyper-inflation like that of post-WWI Germany for us as we try to reign them in?

£100 for a loaf of bread. Savings worthless etc....If it's not controlled properly.

Edited by FourWheelDrift on Tuesday 30th November 21:46

[sidicks]

sleep envy said:

Can anyone explain to me the repercussions of the doomsday senario if euro were to collapse?

A new Porsche 911 Turbo will cost £1,500 GBP equivalent??

Sidicks

[sleep envy]

FourWheelDrift said:

Would one of the scenarios involve countries going back to their old currencies at highly inflated rates trying to get their economy back on track (eg 1 Irish Punt = equivalent of 100€) so that they can then trade against the pound and dollar at more favourable rates which would screw us if they owed us billions. Each country hiking up their new currency rates against the pound & dollar trying to wipe out their Euro debt until it reaches a state of hyper-inflation like that of post-WWI Germany for us as we try to reign them in?

£100 for a loaf of bread. Savings worthless etc....If it's not controlled properly.

Edited by FourWheelDrift on Tuesday 30th November 21:46

are you asking or suggesting?

Interesting thought about highly inflated rates

[Ribol]

Italy will go back to the Lira, you will need a skip of Lira notes to buy a bag of crisps and they will give you a wheelbarrow full of sweets for change because they will go back to having no coins again

[sleep envy]

You reckon they'll accept sweets for a paper or coffee this time?

[Ribol]

sleep envy said:

You reckon they'll accept sweets for a paper or coffee this time?

It never worked that way round, they were never daft

[grumbledoak]

Massive inflation, mostly.

[FourWheelDrift]

sleep envy said:

FourWheelDrift said:

Would one of the scenarios involve countries going back to their old currencies at highly inflated rates trying to get their economy back on track (eg 1 Irish Punt = equivalent of 100€) so that they can then trade against the pound and dollar at more favourable rates which would screw us if they owed us billions. Each country hiking up their new currency rates against the pound & dollar trying to wipe out their Euro debt until it reaches a state of hyper-inflation like that of post-WWI Germany for us as we try to reign them in?

£100 for a loaf of bread. Savings worthless etc....If it's not controlled properly.

Edited by FourWheelDrift on Tuesday 30th November 21:46

are you asking or suggesting?

Interesting thought about highly inflated rates

Suggesting, but asking as well as I'm not sure if there are any safeguards in place to stop it happening. All I remember was someone saying "once you are in the Euro you can't get out" but if it collapses Germany will want out as they don't want to be dragged down by the PIGS, then the rest will follow.

[sleep envy]

Ribol said:

sleep envy said:

You reckon they'll accept sweets for a paper or coffee this time?

It never worked that way round, they were never daft

I know, my nonno still moans about the tobacconist...

[sleep envy]

FWD- does that mean the big boys will jump first then followed by the laggers?

[EDLT]

FourWheelDrift said:

sleep envy said:

FourWheelDrift said:

Would one of the scenarios involve countries going back to their old currencies at highly inflated rates trying to get their economy back on track (eg 1 Irish Punt = equivalent of 100€) so that they can then trade against the pound and dollar at more favourable rates which would screw us if they owed us billions. Each country hiking up their new currency rates against the pound & dollar trying to wipe out their Euro debt until it reaches a state of hyper-inflation like that of post-WWI Germany for us as we try to reign them in?

£100 for a loaf of bread. Savings worthless etc....If it's not controlled properly.

Edited by FourWheelDrift on Tuesday 30th November 21:46

are you asking or suggesting?

Interesting thought about highly inflated rates

Suggesting, but asking as well as I'm not sure if there are any safeguards in place to stop it happening. All I remember was someone saying "once you are in the Euro you can't get out" but if it collapses Germany will want out as they don't want to be dragged down by the PIGS, then the rest will follow.

The "you can't get out" bit can't possibly be true can it, if one of the bigger countries (Germany or France for example) went back to their own currency what could the rest of the EU do realistically?

[grumbledoak]

EDLT said:

The "you can't get out" bit can't possibly be true can it, if one of the bigger countries (Germany or France for example) went back to their own currency what could the rest of the EU do realistically?

They (we) would have to secede. No way for war, the EU has no army. Except economically.

Not many can currently afford this.

[ShadownINja]

Do you think many MEPs would commit suicide?

[JensenA]

ShadownINja said:

Do you think many MEPs would commit suicide?

Nah - The pensions are too good.

[smifffymoto]

The Euro will not collapse as there are too many people with vested interests in it's survival,monetarily and politicly

[ringram]

Why would it collapse?

Its under stain yes, but its very easy for the ECB to buy up dodgy govt bonds. Afterall thats what the UK, JP and US have done.
I wouldn't be surprised to see that happen shortly if things get untenable in the present state. In effect there is unlimited funding available in Euro's from the ECB.

Arguably they havnt done so already because the PIIGS need to reform and sort their st out to prevent being permanent parasites.
Probably needs some major changes in constitutions etc. But I think there is a liquidity scheme where banks can borrow unlimited funds that can be rolled over. If the banks then use those funds to buy govt bonds etc perhaps that would work as a get around.

Anyway we will see. I cant see the Euro dying with the ECB able to print money to buy bonds as per US/JP/UK QE.

[Bing o]

ringram said:

Anyway we will see. I cant see the Euro dying with the ECB able to print money to buy bonds as per US/JP/UK QE.

And maybe then they will stop bhing at the Chinese for keeping the Renmimbi low....

[sleep envy]

Unlimited funds for govt bonds?

If they kept on buying bonds wouldn't that devalue the currency?