East Europe on the brink of financial implosion

Its right on the edge and if/when it goes it may take a lot of the EU project with it.

The unfolding debt drama in Russia, Ukraine, and the EU states of Eastern Europe has reached acute danger point. If mishandled by the world policy establishment, this debacle is big enough to shatter the fragile banking systems of Western Europe and set off round two of our financial Götterdämmerung.


The bursting of this bubble may damage Britain less severely than other EU nations. While Irish buy-to-let investors were buying up most of Bratislava, Austrian banks were buying their Romanian equivalents and German and French manufacturers were opening plants from Bucharest to Brno, the only British activity in the region seemed to consist of flying to such locations for stag weekends.


It would be tempting to leave this misgoverned country to its fate. That would be an error. If Ukraine defaults on its foreign debt – or lets its private companies default on their dollar and euro loans – it will lead to near instant contagion through much of Eastern Europe.


What do you think will happen next?
The UK and the Pound Sterling are in the Poo.
Yet the Pound has strengthened against the Euro fair comment from the Financial Speculators on both the Pound and the Euro.
I have said for year that one day the UK must/will join the Euro, but with so many economies on divergent courses Now is not the time. Twenty or fifty years may be needed to bring National economies into line.
The Euro was badly thought out.
Europe is the home of failed National politicians who seem to me to be there just to strip the system bare.

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