safe in the knowledge that with a population of only 4.5 million, the Irish loans will never be paid back.)
They will. But "paid back" in the sense that we have only managed to recently "Pay back" loans post WW2...
The problem is, the cost to the UK, in terms of state owned bank asset writedowns, would cause a serious contagion and the whole eurozone could collapse.
What amazes me, we have politicians arguing business shouldnt be allowed to become "too big to fail", yet they have created a political construct and a single currency that is exactly that.
The Eurozone quite simply is going to have to change their constitution to allow for QE, rather than loans. Its the only way out. Getting all romantic about post WW2 hyperinflation isnt going to stop the PIIGS defaulting and brining the whole sorry mess down with it.
Niggel Farage had a good innings the other day in brussels:
YouTube - Nigel Farage - 'The Euro Game Is Up! Who the hell do you think you are ?'
Interesting to see the sorts of advertising that is prevailing in the us at the mo....
YouTube - US national debt commercial