Moody's, the ratings agency, issued a warning to France last night that it could face the loss of its coveted status as one of the world's most creditworthy nations after saying the euro debt crisis and slowing world economy left the country's AAA rating under pressure. It said that while the French economy remained able to absorb normal shocks, "the government's financial strength has weakened, as it has for other euro area sovereigns, because the global financial and economic crisis." The warning will come as a shock to many in France and is likely to unnerve markets already anxious at the prospect of the euro debt crisis spreading to the US and Asia. Germany's finance minister, Wolfgang Schäuble, added to the uncertainty earlier in the day when he said detailed talks to solve the crisis were likely to go beyond a self-imposed deadline set for this weekend. He also hinted that a rescue deal will fall short of the "big bazooka" that markets believe is needed to prevent the currency club breaking up. Schäuble said a final package would not be in place until the G20 world leaders' summit in Cannes next month. His comments dismayed investors concerned that Berlin and Paris have failed to grasp the magnitude of the eurozone's debt crisis. Stock markets in London, Paris and Frankfurt fell, while in New York the Dow Jones industrial average plummeted 247 points by the close of trading. A two-month flight of cash from European banks accelerated, according to analysts, while fears grew earlier that ratings agencies were poised to downgrade French sovereign bonds, increasing the difference between France's borrowing costs and those of Germany to the highest level since 1995. Oil prices, which had steadied after recent falls, turned downwards again and the euro fell against the dollar as investors sought safe havens. David Jones, chief market strategist at IG Index, said: "German officials clearly decided that a degree of expectation management was needed, and a statement was made warning that if anyone expected a package to be in place by next Monday then they were setting themselves up for disappointment." Markets were at fever pitch after the French president, Nicolas Sarkozy, and German chancellor, Angela Merkel, said at the weekend that they would reveal a rescue plan this Sunday at a crucial European council meeting. The US treasury secretary, Tim Geithner, warned at the weekend it was crucial to agree a package of measures that would reassure markets and end 18 months of wrangling over how to deal with Greek debts. EU policymakers are due to meet this weekend in Brussels ahead of the G20 conference in Cannes on 4 November hosted by Sarkozy. The chancellor, George Osborne, said the Cannes meeting would be crucial in determining whether the global economy could maintain growth. "The biggest boost to growth across the world – and for Britain – would be a resolution to the crisis in the eurozone. Maintaining the momentum towards that will be the focus of my discussion with my international counterparts." Britain has ruled out participating directly in funding any scheme, though it is likely to become involved in a broader backstop plan put forward by the International Monetary Fund.
Access Investments-Building Awareness - European Union-ROMANIA
Tuesday, October 18, 2011
Moody's, the ratings agency, issued a warning to France last night that it could face the loss of its coveted status as one of the world's most creditworthy nations after saying the euro debt crisis and slowing world economy left the country's AAA rating under pressure. It said that while the French economy remained able to absorb normal shocks, "the government's financial strength has weakened, as it has for other euro area sovereigns, because the global financial and economic crisis." The warning will come as a shock to many in France and is likely to unnerve markets already anxious at the prospect of the euro debt crisis spreading to the US and Asia. Germany's finance minister, Wolfgang Schäuble, added to the uncertainty earlier in the day when he said detailed talks to solve the crisis were likely to go beyond a self-imposed deadline set for this weekend. He also hinted that a rescue deal will fall short of the "big bazooka" that markets believe is needed to prevent the currency club breaking up. Schäuble said a final package would not be in place until the G20 world leaders' summit in Cannes next month. His comments dismayed investors concerned that Berlin and Paris have failed to grasp the magnitude of the eurozone's debt crisis. Stock markets in London, Paris and Frankfurt fell, while in New York the Dow Jones industrial average plummeted 247 points by the close of trading. A two-month flight of cash from European banks accelerated, according to analysts, while fears grew earlier that ratings agencies were poised to downgrade French sovereign bonds, increasing the difference between France's borrowing costs and those of Germany to the highest level since 1995. Oil prices, which had steadied after recent falls, turned downwards again and the euro fell against the dollar as investors sought safe havens. David Jones, chief market strategist at IG Index, said: "German officials clearly decided that a degree of expectation management was needed, and a statement was made warning that if anyone expected a package to be in place by next Monday then they were setting themselves up for disappointment." Markets were at fever pitch after the French president, Nicolas Sarkozy, and German chancellor, Angela Merkel, said at the weekend that they would reveal a rescue plan this Sunday at a crucial European council meeting. The US treasury secretary, Tim Geithner, warned at the weekend it was crucial to agree a package of measures that would reassure markets and end 18 months of wrangling over how to deal with Greek debts. EU policymakers are due to meet this weekend in Brussels ahead of the G20 conference in Cannes on 4 November hosted by Sarkozy. The chancellor, George Osborne, said the Cannes meeting would be crucial in determining whether the global economy could maintain growth. "The biggest boost to growth across the world – and for Britain – would be a resolution to the crisis in the eurozone. Maintaining the momentum towards that will be the focus of my discussion with my international counterparts." Britain has ruled out participating directly in funding any scheme, though it is likely to become involved in a broader backstop plan put forward by the International Monetary Fund.
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Europe, like the US and Canada, have been stealing from children for decades, through their ever increasing debts, to fuel their fake economies for ~45 years.
Europe will try to solve a debt crisis with more debt.
With the EFSF, they will bring their over-borrowing up another notch, by borrowing more to give to the incompetent countries that borrowed too much and the incompetent banks.
This means that they will steal even more from their children.
Read:
Europe's "Stealing from Children" goes into Overdrive
http://www.newworldparty.org/2011/10/europes-stealing-from-children-goes.html
IMF might give more good money after bad to Europe, as well. Since the U.S., UK, Canada, Australia and other countries fund the IMF, IMF may join in the "stealing" from your children.
Before we agree to this, somebody needs to present a clear analysis and explanation, showing the long term, quantified advantages and disadvantages and cost / savings to the different parties, of the following scenarios:
1. Stop giving money to Greece. Let them default or restructure.
a. Let Greece stay in the Euro Zone. What is the cost of this to the current generation and to which countries?
b. Let Greece exit the Euro Zone and go back to the Drachma. What is the cost of this to the current generation and to which countries?
c. Let the other European countries save their banks. What is the cost to the current generation and to which countries?
d. Let the banks fail. What is the cost to the current generation and to which countries?
2. Continue giving money to Greece and watch them continue to waste it. What is the cost of this to the future generations and to which countries?
Where is this analysis from the EU, Euro Zone, European Commission, ECB or IMF?
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