Rob's 15th guest post on Saving the Euro.
Euro zone debt map....this is interesting
Have a look at the attached interactive map (thanks to the BBC), and see if you now agree with the concept I suggested a while ago.
The problem throughout Europe is the sovereign debt issue, and I suggested somewhat tongue in cheek a little while ago that they could simply "net" off what they owe to each other, thereby bringing down each country's requirement to finance their outstanding holdings.
As an example (assuming the figures in the map are correct), compare the UK to France – what do we owe each other as nations?
Believe it or not we owe each other around Euro 210bn, why not simply net it off and reduce the overall sovereign debt burden for both countries by a significant amount?
I accept that there are different maturities and interest rates involved, but this is just a simple case of financial mathematics – the overall cash burden would be reduced significantly.
If you look at the UK and USA, you could net off around Euro 600bn……..
The UK and Ireland could net off around Euro 105bn…….
A little simplistic I know, but I have yet to come across an overwhelming argument why this could not be done.
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The author, Rob (not his real name), works in one of UK's largest charities.
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