Two Questions

Dotsie~tmp

Out of interest what does anyone think are the chances that the UK's side deal will be funded by QE money? They know we lack the ability to devalue and ultimately later some arrangement of forgiveness will be worked out. CT forum maybe?

Secondly would anyone agree with the following opinion. Europe will not get ahead of this problem until it begins to see it as EU not just "PIIGS" problem. By that I mean all this debt thats being shoved around (the bill for the bust) is going to land somewhere. Is there any point in Ireland assuming a level of debt that no amount of growth can get us out from under. It would merely postone a default till later when we realise we just cant pay it, exit and devalue.

The defaults are eventually going to arrive at UK and EU banks doors anyway in that case. If the bill and the pain cannot be avoided (I dont think it can) does it not make sense to spread it as wide and as thinly as possible? In other words haircuts all round but no shaved heads. This exercise I think would have to be coupled with some of the debt being monetised, QE, competetive devaluation whatever you want to label it. Im talking about turning on the printing presses and debasing the currency. Dangerous I know but so is a banking collapse and so is a Europe un-united as the last century has shown us.

Now I understand a plan like this might make Germans choke on their cabbage initally, but there is plenty of blame for this mess to go around. If their banks loaned huge money into asset bubbles on Europes periphery they made some bad bets and have to pay. Not to mention monetary policy (rates obv.) that suited Europe and was turbo cocaine to Ireland. Even if they refused a default would bring the problem to their doorstep no matter how much they dont like it. They cant get away from the problem even if they themselves exited, the red ink is there its just gonna take time to show up.

Bob_Latchford

Could well be QE money. Isnt the whole point of QE money is that it is indistinguisable from non QE money?

Think your right. Ireland is europe, its a EU problem. If its not EU problem then Ireland has no place in the euro.

Think QE by ECB will come down the line, but think they would rather leave that till another country (Spain?) came under pressure.

ECB cranking up the printing presses and buying Irish debt, spreads the pain across all of eurozone. They would like localised solution at the moment, its not helping the situation imo, but its all political for benefit of their own audiences.