Eurozone crisis live: Unemployment rate hits new high of 11.1%

[Audio]

One day soon, however, Europe will have to face reality. Either the EU is turned into a fiscal and political union, a genuine superstate where national debts are shared. Or the euro and possibly the EU disintegrate.

ECB starts buying government bonds which they fail to sell in the open market in October.

though i do not see it as a good strategy, but it is necessary right now. It could however backfire with the lower productivity countries starting to rely on ECB financing and not amending all the problems which have led them so far.

Rest of the article is just doom and gloom, you're usual, not worthy of responding too. Germany is the biggest benefactor of the euro, highly unlikely they will leave, but somehow your biased article neglects to take that into account.
Like i said, you're usual one sided stuff.

 

[notorious_eagle]

ECB starts buying government bonds which they fail to sell in the open market in October.

though i do not see it as a good strategy, but it is necessary right now. It could however backfire with the lower productivity countries starting to rely on ECB financing and not amending all the problems which have led them so far.

Rest of the article is just doom and gloom, you're usual, not worthy of responding too. Germany is the biggest benefactor of the euro, highly unlikely they will leave, but somehow your biased article neglects to take that into account.
Like i said, you're usual one sided stuff.

I agree with your point of view to a certain extent

Casting aside all these doom day scenario, there is no doubt that Europe has the resources to pull herself out of this mess. Europe is still home to some of the most productive and innovative companies. We are still not seeing the structural solutions that are required from across the board to fix Europe's economy. There is still a lack of political consensus and the political leaders are still engaged in their usual bickering. The South is blaming the North for being greedy while the North blames the South for being lazy. There is an element of truth among both the accusations, but this bickering is not helping anyone and is hurting Europe.

Instead of being proactive, it does appear that the ECB and especially the Germans are reactive. Instead of forecasting the problems earlier and launching a solution for it, they wait until the sh** hits the fan and than launch a relief program. Without an aggressive plan, a speedy recovery is very unlikely. There needs to be structural solutions across the board along with political consensus and that needs to happen fast.

 

[Hello_10]

ECB starts buying government bonds which they fail to sell in the open market in October.

though i do not see it as a good strategy, but it is necessary right now. It could however backfire with the lower productivity countries starting to rely on ECB financing and not amending all the problems which have led them so far.

Rest of the article is just doom and gloom, you're usual, not worthy of responding too. Germany is the biggest benefactor of the euro, highly unlikely they will leave, but somehow your biased article neglects to take that into account.
Like i said, you're usual one sided stuff.

Eurozone unemployment at fresh high

Unemployment in the eurozone hit a fresh high of 18.2 million in August, the EU statistics agency has said.

The number out of work rose by 34,000, but after the July data was revised up, it meant the unemployment rate remained stable at a record high of 11.4%.

The highest unemployment rate was recorded in Spain, where 25.1% of the workforce is out of a job, and the lowest of 4.5% was recorded in Austria.

The unemployment rate in Germany was 5.5%, Eurostat said.

'Lost generation'

Last week, the European Commission warned of the existence of "a real social emergency crisis" due to the fall in household income and growing household poverty.

Youth unemployment remains a particular concern, with the rate among under-25s hitting 22.8% across the eurozone, and 52.9% in Spain.

The commission repeated its call to governments and businesses to act to try to avoid the "disaster" of "a lost generation".

In Greece, the most recent figures recorded in June show that more than 50% of the young workforce has no job.

These two countries have by far the highest unemployment rate in the eurozone, as both governments look to cut spending and raise taxes to try and cut high debt levels.

These actions, which are needed in Greece to meet the terms of two huge bailouts and in Spain to restore confidence among international investors in Madrid's ability to repay its debts, have exacerbated the unemployment problem.

The eurozone as a whole is also struggling to generate the economic growth needed to stimulate employment. Its economy shrank by 0.2% between April and June, with Italy and Spain stuck in recession and France registering no growth for the past three quarters.

The notable exception is the German economy, Europe's biggest, which grew by 0.3% in the second quarter.

Across the wider 27-nation European Union, unemployment rose by 49,000 to 25.5 million people, Eurostat said, with the unemployment rate stable at 10.5%.

A commission spokesman said the total was "clearly unacceptable".

Compared with a year earlier, the unemployment rate rose in 20 countries, fell in six and remained stable in the UK.

By way of comparison, the unemployment rate in the US was 8.1% in August and 4.1% in Japan.

Child poverty fears

The European Commission said last week that disparities between the best and worst performing economies had continued to widen in the second quarter of the year.

It also expressed concern about the social situation, which remained "very serious".

The number of people experiencing financial stress remains historically high, it said in its latest quarterly review of the jobs situation across the European Union.

Household incomes had declined dramatically in Greece, where disposable incomes had dropped by 15.7% between 2009 and 2011, the commission said. Households in Ireland were living on 9% less.

Child poverty was also becoming an issue for an increasing number of households, particularly in countries where child benefits are inadequate.

Almost a fifth of families are at risk of poverty in Spain, Greece, Italy and Portugal, the review said.

August unemployment rates

Spain: 25.1%
Portugal: 15.9%
Ireland: 15%
Italy: 10.7%
France: 10.6%
Germany: 5.5%
Eurozone: 11.4%
US: 8.1%
Japan: 4.1%

http://www.******************/forums/world-affairs/21209-uk-eurozone-crisis-live-3.html

http://www.******************/forums/world-affairs/21209-uk-eurozone-crisis-live-3.html

 

[Hello_10]

Eurozone unemployment at fresh high

Unemployment in the eurozone hit a fresh high of 18.2 million in August, the EU statistics agency has said.

The number out of work rose by 34,000, but after the July data was revised up, it meant the unemployment rate remained stable at a record high of 11.4%.

The highest unemployment rate was recorded in Spain, where 25.1% of the workforce is out of a job, and the lowest of 4.5% was recorded in Austria.

The unemployment rate in Germany was 5.5%, Eurostat said.

'Lost generation'

Last week, the European Commission warned of the existence of "a real social emergency crisis" due to the fall in household income and growing household poverty.

Youth unemployment remains a particular concern, with the rate among under-25s hitting 22.8% across the eurozone, and 52.9% in Spain.

The commission repeated its call to governments and businesses to act to try to avoid the "disaster" of "a lost generation".

In Greece, the most recent figures recorded in June show that more than 50% of the young workforce has no job.

These two countries have by far the highest unemployment rate in the eurozone, as both governments look to cut spending and raise taxes to try and cut high debt levels.

These actions, which are needed in Greece to meet the terms of two huge bailouts and in Spain to restore confidence among international investors in Madrid's ability to repay its debts, have exacerbated the unemployment problem.

The eurozone as a whole is also struggling to generate the economic growth needed to stimulate employment. Its economy shrank by 0.2% between April and June, with Italy and Spain stuck in recession and France registering no growth for the past three quarters.

The notable exception is the German economy, Europe's biggest, which grew by 0.3% in the second quarter.

Across the wider 27-nation European Union, unemployment rose by 49,000 to 25.5 million people, Eurostat said, with the unemployment rate stable at 10.5%.

A commission spokesman said the total was "clearly unacceptable".

Compared with a year earlier, the unemployment rate rose in 20 countries, fell in six and remained stable in the UK.

By way of comparison, the unemployment rate in the US was 8.1% in August and 4.1% in Japan.

Child poverty fears

The European Commission said last week that disparities between the best and worst performing economies had continued to widen in the second quarter of the year.
It also expressed concern about the social situation, which remained "very serious".

The number of people experiencing financial stress remains historically high, it said in its latest quarterly review of the jobs situation across the European Union.

Household incomes had declined dramatically in Greece, where disposable incomes had dropped by 15.7% between 2009 and 2011, the commission said. Households in Ireland were living on 9% less.

Child poverty was also becoming an issue for an increasing number of households, particularly in countries where child benefits are inadequate.

Almost a fifth of families are at risk of poverty in Spain, Greece, Italy and Portugal, the review said.

http://www.******************/forums/world-affairs/21209-uk-eurozone-crisis-live-3.html

Correct link for the above news is as below:

BBC News - Eurozone unemployment at fresh high
1 October 2012


Eurozone in deepening recession, says PMI survey

LONDON: Europe appears headed for a deepening economic recession despite a recent easing in market concerns over the three-year debt crisis, a closely-watched survey found Thursday.

Financial data company Markit said its purchasing managers' index - a gauge of business activity - for the 17-country eurozone fell to 45.9 in September from 46.3 the previous month.

The decline was a surprise as the consensus in the markets was for a modest improvement. Anything below 50 indicates a contraction in economic activity.

September's rate was the lowest in over three years and came despite an easing in the rate of economic contraction in Germany, the eurozone's largest economy.

The decline also highlights the scale of the challenge facing European policymakers as they seek to get a grip on the debt crisis and may fuel hopes that the European Central Bank will cut its main interest rate further from the record low of 0.75 percent.

Over recent weeks, stocks in Europe have pushed up to multi-month highs, while the euro has reversed course and headed above $1.30 for the first time since the spring.

Markets were driven by a series of apparent breakthroughs in European leaders' efforts to solve the debt crisis.

Most importantly, the ECB announced a new bond-buying plan that would keep a lid on the borrowing costs of countries like Spain and Italy. Expectations that countries would sign up for the plan, which comes with terms attached, have helped bring down bond yields.
But while markets may have improved, economic activity is still on the wane.

``The fall in the PMI in September is another reminder that the ECB's new asset purchase programme is not an answer to all of the region's problems,'' said Ben May, European economist at Capital Economics.

The euro was down 0.8 percent at $1.2940 an hour after the survey's release.

Analysts said the figures suggest the eurozone economy is contracting at a sharper rate than the 0.2 percent quarterly decline recorded in the second quarter of 2012. Conditions in both the manufacturing and services sector worsened.

``The latest readings not only suggest that the euro area has been in recession over the past six months, but also augur ill for the final quarter of the year,'' said James Ashley, senior European economist at RBC Capital Markets.

Ashley said the PMI readings suggest economic output may have fallen by 0.5 percent in the third quarter, equivalent to an annualized decline of just over 2 percent.

He said, however, that he remains ``comfortable'' with his existing forecast of a 0.3 percent quarterly decline.

Eurozone in deepening recession, says PMI survey - Economic Times

 

[Hello_10]

BBC News - Eurozone unemployment at fresh high

Eurozone in deepening recession, says PMI survey

LONDON: Europe appears headed for a deepening economic recession despite a recent easing in market concerns over the three-year debt crisis, a closely-watched survey found Thursday.

Financial data company Markit said its purchasing managers' index - a gauge of business activity - for the 17-country eurozone fell to 45.9 in September from 46.3 the previous month.

The decline was a surprise as the consensus in the markets was for a modest improvement. Anything below 50 indicates a contraction in economic activity.

September's rate was the lowest in over three years and came despite an easing in the rate of economic contraction in Germany, the eurozone's largest economy.

The decline also highlights the scale of the challenge facing European policymakers as they seek to get a grip on the debt crisis and may fuel hopes that the European Central Bank will cut its main interest rate further from the record low of 0.75 percent.

Over recent weeks, stocks in Europe have pushed up to multi-month highs, while the euro has reversed course and headed above $1.30 for the first time since the spring.

Markets were driven by a series of apparent breakthroughs in European leaders' efforts to solve the debt crisis.

Most importantly, the ECB announced a new bond-buying plan that would keep a lid on the borrowing costs of countries like Spain and Italy. Expectations that countries would sign up for the plan, which comes with terms attached, have helped bring down bond yields.
But while markets may have improved, economic activity is still on the wane.

``The fall in the PMI in September is another reminder that the ECB's new asset purchase programme is not an answer to all of the region's problems,'' said Ben May, European economist at Capital Economics.

The euro was down 0.8 percent at $1.2940 an hour after the survey's release.

Analysts said the figures suggest the eurozone economy is contracting at a sharper rate than the 0.2 percent quarterly decline recorded in the second quarter of 2012. Conditions in both the manufacturing and services sector worsened.

``The latest readings not only suggest that the euro area has been in recession over the past six months, but also augur ill for the final quarter of the year,'' said James Ashley, senior European economist at RBC Capital Markets.

Ashley said the PMI readings suggest economic output may have fallen by 0.5 percent in the third quarter, equivalent to an annualized decline of just over 2 percent.

He said, however, that he remains ``comfortable'' with his existing forecast of a 0.3 percent quarterly decline.

Eurozone in deepening recession, says PMI survey - Economic Times

Oct 1, 2012 10:05am BST

LONDON (Reuters) - Euro zone manufacturing put in its worst performance in the three months to September since the depths of the Great Recession, with factories hit by falling demand despite cutting prices, a business survey showed on Monday -- pointing to a new recession.

Factories helped lift the 17-nation bloc out of its last recession but the survey suggests a downturn that began in smaller periphery countries has taken root in core members Germany and France.

Euro zone September factory data flags new recession - PMI | Reuters

 

[Hello_10]

Switzerland arming in preparation for European meltdown
12 October, 2012

The Swiss Army is preparing contingency plans for violent unrest across Europe. A nation mostly famous for its banks, watches and chocolate fears it may face a massive influx of European refugees in the near future.

One of the world’s richest nations openly expressed concerns over the possible outcome of Europe’s continuing financial troubles, and is currently conducting army exercises against the possibility of riots along its borders.

In September, the Swiss military conducted exercises dubbed ‘Stabilo Due,’ with scenarios involving violent instability across the EU.

Switzerland has maintained an avowedly neutral stance for decades, and refused to join the eurozone when presented with the opportunity.

Bern’s biggest fear is likely the disorganization of neighboring nations’ armies that would follow general instability; the eurozone crisis and the severe austerity measures in the EU are forcing member-states to significantly slash their military budgets. If protest continues to spread across Europe, police and armed forces may find themselves ill-equipped to manage the unrest.

"I will not rule out that we will need the army in the coming years,” Swiss Defense Minister Ueli Maurer said last Sunday.

The Swiss Defense Ministry has pressed ahead to modernize the country’s army despite political opposition. With its multibillion-Franc military budget and an army of around 200,000 soldiers, the country also plans to purchase new ‘Saab Gripen’ jet fighters.

Switzerland arming in preparation for European meltdown? — RT

 

[Developereo]

The EU and Euro are artificial constructs propped up by France and Germany.

The EU's only objective is to give global political muscle to these two countries.

The Euro is essentially a fancy currency manipulation tactic by France/Germany to keep their exports competitive since, by themselves, the FF and the DM would be higher than the Euro.

The price for all this, of course, is that French/German taxpayers have to keep propping up the economic laggards in the Union.

 

[Audio]

The EU and Euro are artificial constructs propped up by France and Germany.

The EU's only objective is to give global political muscle to these two countries.

The Euro is essentially a fancy currency manipulation tactic by France/Germany to keep their exports competitive since, by themselves, the FF and the DM would be higher than the Euro.

The price for all this, of course, is that French/German taxpayers have to keep propping up the economic laggards in the Union.

ofcourse, you have it all figured out. As always! lol, nevermind the fact that French economy is pretty much tanking right now. but, you conveniently glossed over it as it doesnt fit in your vocal spasms.


yo and dummy, lol, i just remembered. DM was never higher that $, neither was the frank. Euro is higher then $ since its creation. You score again with your stupidity?

Where's the joos in this grand theory? lol, fuckin amateur speaker for the unwashed masses.

 

[Audio]

Switzerland arming in preparation for European meltdown? — RT[/url]

lol, doom and gloom from the stupid Indian who says he knows politicians. RT bot pro!

oi, you immigrants will pull us out , right? i mean, you guys are the motor of our economies, correct? i wonder why India is in such a bad shape then. 1.2 billion potential saviors of failed western economies.

Let me remind you why you are in Australia and not back in incredible India filled with geniuses.


Supapowa, all with Harvard economics degree

Even the cows are skinny!

 

[xuxu1457]

even the people without job can get more more money than 90% other country people, so nothing worry about them

 

[Hello_10]

in fact, if Euro collapse then it will bring down USD with the same rate. but Im mainly worried for Chinese export to GDP ratio, which is still high and we are scared that a sudden fall of EU+US will bring down those economies which are heavily dependent on export to EU+US. we want US+EU to borrow debt for at least 3-4 years so that chinese export industries may have made enough domestic consumers till then. remember, its the China who has coped with the Western technologies to its current level, why all the developing countries can now enjoy these technologies 'easily' otherwise there were heavy sanctions on copying those western techs till 90s. (its a disaster for the country like India that their professionals developed those technologies for US but India itself found it always hard to get those techs until China copy them.... )

and if the Euro+USD together collapse by 2015, say, then there will be a serious sex for the Indian Economy. the oil prices will fall to hardly under $40/barrel, similar to the recession period of 2009, reducing india's inflation to below 0% silimar to that time. and at the same time import from EU will become very cheap for India. there will be a heavy saving on the import side from EU when Euro fall. like the news for 2011 as below. here, if Euro suddenly falls by even 50%, say, then you will have to then pay hardly around $46bil to import the same products from EU, with around $40bil saving on trade deficit side from EU alone
(but yes there will be a loss on the export side also but we do know that export to GDP ratio of India is very less so the losses on export side can easily be covered by increased domestic consumptions.)

India's exports to European countries increased by about 16 per cent to USD 57.7 billion in 2011-12, while imports rose by about 29 per cent year-on-year to USD 91.5 billion.

Exports to Europe up 16%; imports 29%

even the people without job can get more more money than 90% other country people, so nothing worry about them

but its hard to feed yourself as per the prices in US. even a coffee cost $3.5 on street, the minimum (flat white, medium size). you can't really survive on the money they give on the name of Welfare there

 

[R0H1T]

The EU and Euro are artificial constructs propped up by France and Germany.

The EU's only objective is to give global political muscle to these two countries.

The Euro is essentially a fancy currency manipulation tactic by France/Germany to keep their exports competitive since, by themselves, the FF and the DM would be higher than the Euro.

The price for all this, of course, is that French/German taxpayers have to keep propping up the economic laggards in the Union.

Oh well pretty similar to what the PRC does with its yuan, nothing new here

 

[Developereo]

ofcourse, you have it all figured out. As always! lol, nevermind the fact that French economy is pretty much tanking right now. but, you conveniently glossed over it as it doesnt fit in your vocal spasms.


yo and dummy, lol, i just remembered. DM was never higher that $, neither was the frank. Euro is higher then $ since its creation. You score again with your stupidity?

Where's the joos in this grand theory? lol, fuckin amateur speaker for the unwashed masses.

I should know better than to waste time on an imbecile like you, but

a) French economy 'tanking' has nothing to do with the discussion. Economies rise and fall. Even now, France and Germany remain the main economic engines of the Eurozone.

b) For exchange rates, what matters is not the actual number, but the purchasing value. By your mickey mouse logic, since 1USD = 80JPY, this must mean that the US economy is 80 times stronger than Japan's.

German exports were adjusted to be priced in Euros so a German machine that used to cost DM 1000 was repriced at EU 500. To help your mind understand the concept, imagine that Germany didn't join the EU but replaced all DM with a new currency note Deutche X (DX) where each DX was worth 2 DM. Now, the DX would be 'worth' more than a USD by a long shot and, more importantly, its value wouldn't be weighed down by the economic liabilities of the PIIGS laggards.

Here's some reading for if you ever manage to graduate past the above two points and are ready to tackle more info.

Why Germany needs the euro - The Term Sheet: Fortune's deals blog Term Sheet

It's probably because of a truth that no one likes to talk about: Germans have benefitted greatly from the euro -- it's given them an artificially weak currency.
[...]
While there is no doubt that the Germans make quality stuff, the reason they are able to export so much at competitive price points is because they are operating with a relatively cheap currency.

Euro Crisis Helps Germany by Lowering Borrowing Costs - SPIEGEL ONLINE

 

[Audio]

I should know better than to waste time on an imbecile like you, but

a) French economy 'tanking' has nothing to do with the discussion. Economies rise and fall. Even now, France and Germany remain the main economic engines of the Eurozone.

b) For exchange rates, what matters is not the actual number, but the purchasing value. By your mickey mouse logic, since 1USD = 80JPY, this must mean that the US economy is 80 times stronger than Japan's.

German exports were adjusted to be priced in Euros so a German machine that used to cost DM 1000 was repriced at EU 500. To help your mind understand the concept, imagine that Germany didn't join the EU but replaced all DM with a new currency note Deutche X (DX) where each DX was worth 2 DM. Now, the DX would be 'worth' more than a USD by a long shot and, more importantly, its value wouldn't be weighed down by the economic liabilities of the PIIGS laggards.

Here's some reading for if you ever manage to graduate past the above two points and are ready to tackle more info.

Why Germany needs the euro - The Term Sheet: Fortune's deals blog Term Sheet

It's probably because of a truth that no one likes to talk about: Germans have benefitted greatly from the euro -- it's given them an artificially weak currency.
[...]
While there is no doubt that the Germans make quality stuff, the reason they are able to export so much at competitive price points is because they are operating with a relatively cheap currency.

Euro Crisis Helps Germany by Lowering Borrowing Costs - SPIEGEL ONLINE

Thing is i lived through this period of currency swaps, i know very well that the DM was worth half a euro when it went out the door.
Any "projections","if's" and "hypothetical DX's" you are trying to throw in here are just weaseling out.
So yeah mickey mouse logic with experience vs you with no experience linking articles from CNN financial pages.

Sure it might be strong on its own, but when it was in reality on it's own its was pretty weak. In other words, experience of past events first hand again vs your illusions, expectations & belief in CNN financial experts.

German exports were adjusted to be priced in Euros so a German machine that used to cost DM 1000 was repriced at EU 500

This is actually the same amount of money, nothing less, just charged in a different currency, because in fact you could buy 1 euro with 2 DM and not 1 euro for 1 DM. You dont even know the exchange rate and you set it at 1:1. Mickey mouse logic much? Or because it suits your claim atm?

Replaced by €, cash 1 January 2002/28 February 2002
€ = 1.95583 DM
http://en.wikipedia.org/wiki/Deutsche_Mark
column at the top.

btw, key word of your tractate and your entire argument is "imagine".

 

[A.Muqeet khan]

lol, i didnt even read it.

Thing is i lived through this period of currency swaps, i know very well that the DM was worth half a euro when it went out the door.
Any "projections","if's" and "hypothetical DX's" you are trying to throw in here are just weaseling out.
So yeah mickey mouse logic with experience vs you with no experience.

Tzhe Spiegel link i dont know why you threw it there? It only talks about low borrowing costs, but that is not really related to the weakness or strength of the Euro but to the performance of the German economy. I mguess it's there just for show, right? So we can all see how dilligently you researched the subject!

apparently nothing beats ur experience of trolling thats for sure