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Old 15th December 2008, 02:30 PM   #13
greytop
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Join Date: Apr 2006
Location: Pego, Spain
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Quote:
Originally Posted by Legazpi View Post
.... For example, Spain's currency has been strengthening against the pound for over a year now. However it's difficult to say that Spain's economy has been performing better than that of the UK.
This is because it is not just Spain's currency - the Euro is that of the whole EU (Britain excepted for reasons not even most of them understand )
This makes the EU member countries cut back on excesses to some extent, again Britain being an exception so that over the last 5 or 6 years the British government has been able to spend more than it should and has kept interest rates higher than would have happened otherwise. When the world banking system went belly up it therefore left Britain in a very exposed position, which is what we are seeing the effect of now.
And today's news of the multi billion $ swindle, set up by a hedge fund manager and colluded in by the banks, is not going to help anyone much.
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