Cyprus-Forum.com

by **Jerry** » Sat Oct 08, 2011 12:51 pm

CBBB wrote:
Jerry wrote:
CBBB wrote:
Jerry wrote:
boulio wrote:If Greece left the euro why would in need to leave the eu?

In a discussion on BBC Newsnight about the Greek debt crisis the experts were quite clear that if Greece leaves the Euro it would also have to leave the EU.

Why? Plenty of countries in the EU that don't have and don't want the Euro.

Don't ask me, ask the experts. It's one thing not joining the euro in the first place as the UK has done but apparently leaving the euro is an entirely different matter.

Which edition of Newsnight was this in?

Over a week ago, can't find it on iPlayer but found this from another source.

The press report that claimed that Greece was considering leaving the monetary union seemed to be more based on a German study for the Finance Ministry on the implications of a Greek exit. The study seemed to suggest that it is preferable for Germany and France and the rest of EMU that Greece remains in the club than outside it. Aside from the direct and indirect financial costs to banks, including the ECB, if Greece would to leave, it would raise the risk that others would exit and could fatally undermine the entire monetary union, if not the EU itself, which Greece apparently would have to leave as well.
http://seekingalpha.com/article/268714- ... tary-union

by **Maximus** » Sat Oct 08, 2011 1:09 pm

Lira game dangerous, former bank governor, economists say

The recent sharp moves by Turkey’s Central Bank to protect the domestic currency from devaluing against foreign currencies is not sustainable, and the bank’s foreign exchange reserves are at a critical level, economists have said.

Deliveli warned, however, that the bank would not be able to do this for long. “You cannot fight markets. The Central Bank is just at the limit [of the ratio of foreign exchange reserves to the total external debt].”

http://www.hurriyetdailynews.com/n.php? ... 2011-10-07

Basically, speculators know that the Turkish central bank will support their currency from devaluing further and they have a reserve set aside for this. The market will test this demand for Liras and push prices lower, profitting in the process.

by **AWE** » Sat Oct 08, 2011 1:24 pm

YTL devalues then their exports are cheaper and as they are an exporting economy this is not a bad thing. Additionally EUR/USD/GBP etc spenders will arrive for cheaper hols, again not a bad thing.

by **Jerry** » Sat Oct 08, 2011 1:52 pm

AWE wrote:YTL devalues then their exports are cheaper and as they are an exporting economy this is not a bad thing. Additionally EUR/USD/GBP etc spenders will arrive for cheaper hols, again not a bad thing.

Makes exports cheaper but it has to export more for the same return - so the buggers will have to work a bit harder, again not a bad thing. :lol:

by **Maximus** » Sat Oct 08, 2011 1:58 pm

AWE wrote:YTL devalues then their exports are cheaper and as they are an exporting economy this is not a bad thing. Additionally EUR/USD/GBP etc spenders will arrive for cheaper hols, again not a bad thing.

A weeker currency is an advantageous thing for exports, this is correct, it is also disadvantageous for imports. A weaker Lira means Turkeys clients will be able to purchase Turkish products and services cheaper. The exporter, in this case Turkey, must experience an increase in demand to generate greater revenues from this dynamic. if demand remains constant or even decreases, Turkey will experience even less revenues if her currency continues to get weaker. Additionally, if your importing expenditure is greater than the revenues generated from your exports, a weaker currency means that Turkey will pay more as a client and Turkey's clients will continue to pay less.

Turkey has a soaring foreign trade deficit. A currency that continues to get weaker is not good in Turkey's case becuase she has to supply and meet an increase in demand so she can maintain her salary and stay in the same place. This translates into more work for even less money. This is the essence of Turkish Policy, across the board, it is backwards.

http://www.tradingeconomics.com/turkey/balance-of-trade

by **Capt J Sparrow** » Sat Oct 08, 2011 2:16 pm

Jerry wrote:
AWE wrote:YTL devalues then their exports are cheaper and as they are an exporting economy this is not a bad thing. Additionally EUR/USD/GBP etc spenders will arrive for cheaper hols, again not a bad thing.

Makes exports cheaper but it has to export more for the same return - so the buggers will have to work a bit harder, again not a bad thing.

What he was saying is that a weak currency is not a bad thing for a country that is a net exporter.

by **Jerry** » Sat Oct 08, 2011 3:13 pm

Capt J Sparrow wrote:
Jerry wrote:
AWE wrote:YTL devalues then their exports are cheaper and as they are an exporting economy this is not a bad thing. Additionally EUR/USD/GBP etc spenders will arrive for cheaper hols, again not a bad thing.

Makes exports cheaper but it has to export more for the same return - so the buggers will have to work a bit harder, again not a bad thing.

What he was saying is that a weak currency is not a bad thing for a country that is a net exporter.

I can read you know, so what point are you trying to make?

by **Capt J Sparrow** » Sat Oct 08, 2011 4:53 pm

Jerry wrote:
Capt J Sparrow wrote:
Jerry wrote:
AWE wrote:YTL devalues then their exports are cheaper and as they are an exporting economy this is not a bad thing. Additionally EUR/USD/GBP etc spenders will arrive for cheaper hols, again not a bad thing.

Makes exports cheaper but it has to export more for the same return - so the buggers will have to work a bit harder, again not a bad thing.

What he was saying is that a weak currency is not a bad thing for a country that is a net exporter.

I can read you know, so what point are you trying to make?

no point.

Just ensuring you know what was said and that you understand something which he pointed out and is fundamentally correct. Your previous posts seem to indicate that you really didn't understand what was said, or that you know what you are talking about.

No offence.

Want a Rum?

by **Jerry** » Sat Oct 08, 2011 5:27 pm

Capt J Sparrow wrote:
Jerry wrote:
Capt J Sparrow wrote:
Jerry wrote:
AWE wrote:YTL devalues then their exports are cheaper and as they are an exporting economy this is not a bad thing. Additionally EUR/USD/GBP etc spenders will arrive for cheaper hols, again not a bad thing.

Makes exports cheaper but it has to export more for the same return - so the buggers will have to work a bit harder, again not a bad thing.

What he was saying is that a weak currency is not a bad thing for a country that is a net exporter.

I can read you know, so what point are you trying to make?

no point.

Just ensuring you know what was said and that you understand something which he pointed out and is fundamentally correct. Your previous posts seem to indicate that you really didn't understand what was said, or that you know what you are talking about.

No offence.

Want a Rum?

No offence taken.

Sorry you have difficulty understanding my posts or the opinions of experts I referred to.

No offence but I don't like Rum.

PS are you GR's junior apprentice?