RANsquawk EU Morning Call - BoE Quarterly Inflation Report Preview - 16/05/12

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jamezelle's picture

Inflation Bitchez!

Phat Stax's picture



Indeed, a disorderly break-up of the eurozone would be so catastrophic that the Bank of England continues to exclude it from its forecasts. But even without it, the Bank now believes that the UK will only grow by around 0.8% this year (down from 1.2% previously).

Speaking as the Bank released its latest quarterly inflation report, Governor King said:

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Even the threat of those more extreme outlooks are enough to affect the outlook for the UK.



Rip van Wrinkle's picture

The Bank of England lies. Continuously. It's going to get better.....oh, no its not......It's going to get better......oh, sorry it didn't.




DEBT. Shedloads of it everywhere.

writingsonthewall's picture

Agreeed - shockingly the EU are simplt not contemplating a Greek exit as (in a bizzare twist of logic) - that will make it happen???

(see Guido Westerwelle interview @ 8:10)


Time to get out the bunting?





What part of '"it's over" don't they understand?

PR Guy's picture

CAN ANYONE TELL ME…. what would actually happen to the Euros held in personal bank accounts by your average Mr and Mrs Spiriadolous in the event of Greece suddenly leaving the Euro?

I presume there would be a ‘bank holiday’ announced (actually, there is one in Greece over the first weekend of June!)  then Mr and Mrs Spiriadolous would wake up on the Tuesday morning to find their €1,000 was now worth 50,000 Drachmas and all Greeks would be told to take their Euros to the bank to swap them for new Drachmas (yeah, like that’s going to happen)….

…..but what happens to the digital Euros that were held in their bank account? Do they just ‘disappear’ or is the Greek government effectively swapping them for new Drachmas and they get to keep all the Euros?

I presume in this instance, all Greek banks accounts would be hit (e.g. businesses whether Greek or foreign, institutions, charities, foreign governments?) or would some be immune (e.g. local bank account of a foreign consul)?

I have asked around but seem to be getting different answers from different people. There must be some laws/rules/precedents somewhere?

I presume that if people in other Euro periphery countries saw that peoples' bank accounts in Greece could be forcibly converted and they would lose their Euros it would start a major bank run in those countries as everyone started pulling Euros cash out to keep under their mattresses and it all becomes a bit of a self-fulfilling prophecy?

magpie's picture

A forced swap and then a "temporary" cap on withdrawals/transfers ?