Tim Worstall

5 responses so far ↓

• 1 Kay Tie // May 8, 2008 at 6:39 pm

  He’s not very precise about what actually happens if it goes pop. With the ejection of the latin countries, does the Euro gain strength or weaken in the crisis? Do the latin governments default on their Euro bonds?

• 2 Jim Winfield // May 8, 2008 at 8:38 pm

  In 1999 I rea dup on this, Connolly and so on, and worked through what would happen.
  The bonds issued by different governments would become, I thought, a parallel currency with the bond yields indicating a suppressed tendency for devaluation.
  At present, the spreads are widening between the north and south.
  The other conclusion was more succint: The workers will be screwed. By umemployment, inflation, downward wage-pressure, taxation, etc. Yup, the workers will be royally screwed.

• 3 MikeinAppalachia // May 9, 2008 at 11:12 am

  Interesting article. I think it is time for me to exchange my 2002 Euroes for USD and be happy with the gain.
  From the link-”Pennsylvania will not let California fail.” Ummm……..maybe not, but Ohio, Mich., et al would not be all that saddened. As California drifts further into debt, becomming more and more dependent upon other states for its utility supplies, and its politics lean toward La Raza, it might be time to cut them loose and avoid a future Bosnia. It may be that Europeans over-estimate the solidarity of the USA.

• 4 john b // May 9, 2008 at 3:32 pm

  “As California drifts further into debt, becomming more and more dependent upon other states for its utility supplies, and its politics lean toward La Raza, it might be time to cut them loose and avoid a future Bosnia.”

  And I’m sure that the most prosperous state in the Union would be glad to stop paying federal subsidies to bail out the comedians in the rust belt, too…

• 5 dearieme // May 9, 2008 at 5:03 pm

  All they need do is attack Fort Sumter……

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