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[Dishevelled Den]

He who sows the wind reaps the whirlwind. 

Sounds like its time to batten down hatches, no new financial commitments, keep your head down and hope the P45 doesn't appear.

My company has recently been taken over by Bosch, who are busy getting our machines made in a chinese factory " so as they can attack the chinese market". Ummm, they will have sets of all our components plus how to build them, plus Bosch control all our patents. How long will we last ?.  And have you noticed how service organisations are all putting up their prices, bus fares in Leicester up by 30%, train fares up, people will take to the roads, and so petrol will go up, etc. A car tyre that cost me £70 a couple years ago is now over £100. Etc, etc, lots of examples everywhere.

Its looking cold out there.

Ken

Unfortunately, UK firms being taken over is part of the cost of out trade deficit with the rest of the world. £9bn in the last Q11, as the inward flow of money has to come from somewhere to balance the books. Germany have a positive trade deficit so their companies have much money to spend on investment, including foreign investment. UK industry needs investment, so get taken over and then in many cases shut down and even if they are kept their profits are repatriated to overseas HQ. This has been happening a lot since the balance of payments really started deteriorating from 1997. Everything from Premier football clubs, to BL, British Steel, ICI etc etc. The reverse has not been happening on the same scale, the only major players I'm aware of have been BAE, Vodafone, Barclays and of course RBS where they bought Duff[/s] ABRN Bank. 

Interesting theory. BUT how come Eurozone countries like Spain don't have their companies being invested in or taken over by foreigners.? I am sorry to say but I have long held the belief that Brits are stupid in allowing their key infrastructure or indeed other companies to be taken over by foreign interests. It would be a cold day in hell before the likes of Spain, France, Germany let their family silver fall into the hands of Johnny Foreigner.

Brits are stupid in allowing their key infrastructure or indeed other companies to be taken over by foreign interests

I certainly agree with that one V and I'll go further by saying that we still have to face the full ramifications of this flawed policy.

[Rods2]

An orderly exit from the Euro is still possible for Greece, but time is fast running out for it to do so. I don't think it will happen as it is not on the Merkosy agenda and therefore the Greek Puppet Prime Minister will not consider it as an option.

Argentina in the 1980's and more recently Iceland in 2008, both recovered quite quickly once they had defaulted. Iceland did their first issue of bonds about 4 months ago at a reasonable interest rate, so by an orderly default and exit from the Euro it would probably take about 2 years to start recovering. If they stay in the Euro then I'm not sure they will be anything but a very poor country as their country will never be competitive on a Euro fixed currency exchange rate. If there is a disorderly exit and a Eurozone financial meltdown with bank contagion then who knows how it will end, but I think we all know it will not be good. 

I see the French cheese eating surrender moneys are already bleating over losing their AAA rating and saying that the UK should have also lost there AAA rating as well. BUT there is a big difference in out economies. If France runs out of money it defaults, if the UK runs out of money we print more. Higher inflation will debase the currency like it already is, but debts shrink, savers and those of fixed incomes are gradually wiped out and if wages don't go up at the same rate or more, we all get gradually poorer, this is what is happening now, but the country will not default or go bankrupt, so we keep our AAA rating.

And just to cheer the French up, here is a quiz question for them to ask Sarkozy: What begins with A that you have not longer got, contains another letter A, but not a third A as you seem to have carelessly lost that one? 

[Nickbat]

You could almost imagine the current political climate as an episode of 'Allo 'Allo....

http://www.youtube.com/watch?feature=player_embedded&v=obrxLu8quhQ

 

[Johnny English]

An orderly exit from the Euro is still possible for Greece, but time is fast running out for it to do so. I don't think it will happen as it is not on the Merkosy agenda and therefore the Greek Puppet Prime Minister will not consider it as an option.

Argentina in the 1980's and more recently Iceland in 2008, both recovered quite quickly once they had defaulted. Iceland did their first issue of bonds about 4 months ago at a reasonable interest rate, so by an orderly default and exit from the Euro it would probably take about 2 years to start recovering. If they stay in the Euro then I'm not sure they will be anything but a very poor country as their country will never be competitive on a Euro fixed currency exchange rate. If there is a disorderly exit and a Eurozone financial meltdown with bank contagion then who knows how it will end, but I think we all know it will not be good. 

I see the French cheese eating surrender moneys are already bleating over losing their AAA rating and saying that the UK should have also lost there AAA rating as well. BUT there is a big difference in out economies. If France runs out of money it defaults, if the UK runs out of money we print more. Higher inflation will debase the currency like it already is, but debts shrink, savers and those of fixed incomes are gradually wiped out and if wages don't go up at the same rate or more, we all get gradually poorer, this is what is happening now, but the country will not default or go bankrupt, so we keep our AAA rating.

And just to cheer the French up, here is a quiz question for them to ask Sarkozy: What begins with A that you have not longer got, contains another letter A, but not a third A as you seem to have carelessly lost that one? 

It can be done by the Bank of England only being an independent national financial organ and that's why you will keep your AAA rating TILL this crisis is running. And after? I'm not sure. Debt of England is huge looked both the private and public sector and seems  it's not really decreasing. Debt is slavery of new age.

[Varche]

An orderly exit from the Euro is still possible for Greece, but time is fast running out for it to do so. I don't think it will happen as it is not on the Merkosy agenda and therefore the Greek Puppet Prime Minister will not consider it as an option.

Argentina in the 1980's and more recently Iceland in 2008, both recovered quite quickly once they had defaulted. Iceland did their first issue of bonds about 4 months ago at a reasonable interest rate, so by an orderly default and exit from the Euro it would probably take about 2 years to start recovering. If they stay in the Euro then I'm not sure they will be anything but a very poor country as their country will never be competitive on a Euro fixed currency exchange rate. If there is a disorderly exit and a Eurozone financial meltdown with bank contagion then who knows how it will end, but I think we all know it will not be good. 

I see the French cheese eating surrender moneys are already bleating over losing their AAA rating and saying that the UK should have also lost there AAA rating as well. BUT there is a big difference in out economies. If France runs out of money it defaults, if the UK runs out of money we print more. Higher inflation will debase the currency like it already is, but debts shrink, savers and those of fixed incomes are gradually wiped out and if wages don't go up at the same rate or more, we all get gradually poorer, this is what is happening now, but the country will not default or go bankrupt, so we keep our AAA rating.

And just to cheer the French up, here is a quiz question for them to ask Sarkozy: What begins with A that you have not longer got, contains another letter A, but not a third A as you seem to have carelessly lost that one? 

It can be done by the Bank of England only being an independent national financial organ and that's why you will keep your AAA rating TILL this crisis is running. And after? I'm not sure. Debt of England is huge looked both the private and public sector and seems  it's not really decreasing. Debt is slavery of new age.

Well therein lies the rub as Shakespear so elequetly put it. The Bank of England can just keep on printing money (quantative Easing) BUT the Eurozone countries cannot. You are right that debt is the new slavery.