Wednesday, February 8, 2012

Craig's Continental Breakup

1. What is currency?
•Currency is money. It's what is traded between merchants or between the people and merchants
2. What is the Euro?
•The Euro is the currency used across most of Europe. 
3. As the modern move toward the Eurozone picked up speed, what did German negotiators want that they did not get?
•The German negotiators wanted to have a united government with all of Europe, instead of each country having it's own. They hoped that they would be able to keep inflation down that way.
4. Why does this matter?
•The Germans wanted to avoid inflation at all costs, as they believed the hyperinflation of 1920 is what allowed the Nazi's to take control of Germany, and that's the absolute last thing that the Germans want to repeat itself.
5. Who or what is PIMCO?
•PIMCO is one of the biggest bond fund managers in the world, and one of the biggest money loaners to governments across the world.
6. What is a bond?
•A bond is basically a loan. You lend someone, say $100, and you expect them to pay you back in full, with interest, in a certain amount of time.
7. What other country would be wounded economically if the Greek economy fails?
•Italy.
8. What is today’s unemployment rate in Spain?
•Over 20%
9. What will it take to “bail out” Greece?
•Have the European Central Bank print new euros that the countries in trouble can use to pay off their debts.

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