The problem with the PIIGS, they just cant bail them out

Discussion in 'Economics' started by mahram, Feb 8, 2010.

  1. Ok the problem with the piigs is that the european union, monetary fund, etc just cant bail them out. First eu, mf, etc needs the country to cut their deficit meanfully as part as any deal. Its not a no string attach situation. But its easier said then done when your dealing with a very sociialistic country like greece, portuagal or spain. LOL you have their unions already planning massive strikes that will shut down the country. Theres no easy solution like you can with a third world country like telling them to lower rates or devalue their currency. They dont have control over them, and the eu wont let them leave the union without dissolveing the entire thing. theres going tobe blood in the street, literally. If you guys remember what happened in france, and that was just about alittle bit about race and trucking guys, it could destabilize the entire region.
  2. at least one of the these countries has a constitution that wont allow for salary cuts which accounts for more than 40% of total public expenditure.

    a constitution amendment requires 2/3 favorable vote on the parliament which will not happen for political reasons but even it does, the unions representing these targeted interests will put the whole country on halt until the the decision was reversed.

    i dont even see the police and army being able to tackle the civll agitation and most likely they'll be easily suck into joining the revolt rather than upholding the law.

    we'd see 50% or more population emigrating to the neighboring EU countries, something like 50mil refugees entitled to move within the EU borders without permit flooding their neighbors.

    i dont see EU not bailing out these countries if necessary. as soon as they realize what are the implications of not doing so for the sake of their own good.
  3. achilles28


    Lets take this as a lesson to not import Eurotrash one-Worldism to the Americas.

    A customs union doesn't necessitate a currency union. Free trade isn't a supranational Constitution, Courts, legislative, and common border.

    It's bogus. And obviously doesn't work.

    If anything, the EU will spin this crisis to dissolve what's left of member sovereignty and hand it over to Brussels. EU members forced to surrender their fiscal, monetary and legislative authority to "never imperil the Union again."

    The entire push for a common currency was ludicrous, anyway. Totally unnecessary and unworkable via the freeloaders.

    The push for super-states is a very bad, undemocratic idea.

    Our "elites" have planned North American integration for nearly a decade. No thanks. Lets flush that.