The future of the Euro and EU.

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Originally Posted by Malbec

Just as if not more importantly though, London and the South East is entirely dependent on the financial sector and contributes to 40% of the British economy, subsidising other parts of the UK. If the City stumbles, London falls and it will take the rest of Britain with it.

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Is that caused by a feedback loop as a result of Tory policies during the 1980s though which Labour didn't bother to change during the 90s and 00s? Has "The City" sucked the capital from the rest of the country?
The City is generally opposed to so called "Robin Hood" taxes anyway but considering that the GFC itself was largely caused by the City and was propped up by the Government anyway, I rather think that this counts as rank hypocrisy.

Why Britian should care what a failed EU says about it I don't know :crazy:

Other than the powerful 'City' engine driving GB Plc, what is left?

Nothing.

It was all either sold off, privatised or run into the ground by moronically flawed management.

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Originally Posted by ioan

With Knockie and Wilko doing their best to support Cameron's views, not sure what your chances are.

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I'll support my own views thanks very much. Whether you agree with them or not is your lookout Sonny Jim.

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Originally Posted by Rollo

Is that caused by a feedback loop as a result of Tory policies during the 1980s though which Labour didn't bother to change during the 90s and 00s?

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Labour reinforced Tory policies regarding the City. The rise of the City took place for a variety of different reasons including government reform and Britain's proximity to the Eurozone without being part of it. That was accompanied by a decline in traditional economic sectors elsewhere in the country.

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Originally Posted by Rollo

Has "The City" sucked the capital from the rest of the country?

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Debatable, British industry self-destructed without the need for anyone else to damage it. You could argue that the City has provided a lot of cheap credit/capital which has helped the British economy develop over the past few years. Tax revenue from the City has mostly been spent elsewhere in the UK to keep economic activity going away from London.

As Malbec says, this is really just an opening gambit. Sometimes it's better to draw a line in the sand straight off rather than fanny about. Then we can start really negotiating. Anyone watching formula 1 for the last 30 years must recognise this ;)

What really worries me is the civil unrest that this pact will unleash. They are still trying to force a huge round peg into a rapidly shrinking square hole.

Pat is spot on as per normal.

The gathering storm - YouTube

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Originally Posted by Malbec

That is a pity indeed.

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You might want to to explain that.

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Originally Posted by Malbec

You're having kittens about how unfair it is that Germany is threatened by a credit rating downgrade from AAA to AA+ by S and P.

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And rightly so.

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Originally Posted by Malbec

Do you know what Romania's credit rating is?

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Depends on the rating agency, but it's more or less BBB, BBB- or BB+ and stable, a tad better than Portugal's rating.
Which is about fair, especially if you consider how low Romania's debt is.

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Originally Posted by Malbec

It was a mistake to let Greece in and it will be a mistake to let in other weak poorly run states that may endanger the Euro in the future. Romania and Bulgaria are as corrupt as Greece and I do not trust that their book aren't cooked to enter the Euro just as the Greeks did.

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The mistake was not to let them in, the mistake was not to strictly control what they were doing. The funniest part was about having criteria to accept someone in the EURO zone but no criteria or rules to punish them or throw them out in case they cheat.

Anyway you're mixing the cause and the symptoms.

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Originally Posted by SGWilko

I'll support my own views thanks very much. Whether you agree with them or not is your lookout Sonny Jim.

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Will talk again in a couple of years. The question is if you will pay in Euro or USD at that time.

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Originally Posted by Malbec

You could argue that the City has provided a lot of cheap credit/capital which has helped the British economy develop over the past few years. Tax revenue from the City has mostly been spent elsewhere in the UK to keep economic activity going away from London.

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So Cameron did what he did in order to protect UK's financial motor.
The question is what if the City will fall if the Euro can't be saved due to UK's lack of unity?
Called me old fashioned but I'm rather sure that the City with it's perceived financial glow is creating more debts than added value for the economy.
Anyway, we will see what happens in due time.

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Originally Posted by Malbec

Labour reinforced Tory policies regarding the City. The rise of the City took place for a variety of different reasons including government reform and Britain's proximity to the Eurozone without being part of it. That was accompanied by a decline in traditional economic sectors elsewhere in the country.



Debatable, British industry self-destructed without the need for anyone else to damage it. You could argue that the City has provided a lot of cheap credit/capital which has helped the British economy develop over the past few years. Tax revenue from the City has mostly been spent elsewhere in the UK to keep economic activity going away from London.

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Does this take into account that bailing out the financial sector could have cost us £1.2trillion (Reality check: how much did the banking crisis cost taxpayers? | Politics | guardian.co.uk), while tax revenues from the finacial sector only amount to £53billion or 11% of GDP (http://217.154.230.218/NR/rdonlyres/...inalForWeb.pdf).

I am sceptical of these figures, but if they are true then the city might be costing us money :(