European Leader meeting this weekend to solve Eurozone Debt Crisis.

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In over 80 countries people have demonstrated against capitalism, corporal greed and financial management. This weekend it also happened in London in front of the St Pauls Cathedral next to the London Stock exchange. Around 500 people occupied the square over the weekend as part of the global Occupy Wall Street protests and 200 stayed in tents overnight.

The origin of the protests against capitalism was in Madrid, Spain where thousands of people went to the streets in May due to their declining job prospects. After this the protests started on the 17th of September on Wall Street in New York with an Anti-Bank message saying “We are the 99%”. Now the protests are in over 100 cities in the US alone and spreading throughout the globe. On the 15th of October protests were held in North and South America, Asia, Africa and Europe, with over 1,500 events in 82 countries.

Till now the protests have been peaceful, with the exception of Rome, but this could change due to the Euro Crisis. If the forthcoming meeting of the Euro leaders in Cannes and Brussels fail to deliver the number of people protesting peacefully or otherwise could rise dramatically.

The European Leaders have been given one week from today, October 17th, to solve the crisis at the European Union Summit. According to the World Business Report they have to agree on the following:  private sector losses on Greek debt, plan to recapitalise Europe’s banks, and how to increase the size of Europe’s bailout fund (European Stabilisation Fund).

However the future looks grim as the problems are very complex and have been there since two years (or more) and can’t be solved in a week. The coming months will write world history, for the good or for the bad.

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One Response to “European Leader meeting this weekend to solve Eurozone Debt Crisis.”

  1. ngoziokei Says:

    “Peak oil” is a stage where the earth supply of oil will no longer be able to meet our energy needs. It is impossible to renew oil; therefore it will get to a point in future where it can’t meet the demands of the earth population. That is where the crisis of oil begins, along with the Awakening and threatening of the Middle East countries, unfolding to the entire world.
    “None of us can go a little way with a theory, “wrote John Henry Cardinal Newman (1801-1890) in his book Essays Critical and Historical. “When it once possesses us, we are no longer our own masters. It makes us speak its words, and do violence to our nature”. (http://www.peak-oil-news.lnfo/global)
    Sky News, yesterday at about 18:33, announced that the Prime Minister (David Cameroon) said that Eurozone crisis is having a chilling effect on all our economies. Eurozone leaders met yesterday with little or no result at hand, henceforth meeting on Wednesday (26th) of this month to discuss plans to increase existing Greek Bailout fund, hopefully achieving a better result in agreement.
    Every day that passes by, life becomes more difficult due to the crisis of the prices of oil, the uprising of the Arab countries crying out for a change in their government and not to talk of the basic needs of life that are very expensive to keep up with.
    The events are unfolding by Greece economy is falling apart. The government can’t pay its bill any longer without continuous bailouts from the EU. That means the country will owe the European banks. This will affect and destroy the Europe banks and slow the global economy, which will definitely affect other European countries, and make it difficult for Germany/France to bail out. This outcome will make the world not to have much left in the banking system. (http://www.postcarbon.institute). Sky News announced on the 23th of this month at 02.27am, that European Finance Ministers have agreed 100billion Euro Deal to recapitalise banks
    If this problems are not settled in the near future, an overwhelming flow of burden will begin, which will collapse the world economy system. Truly the Europeans do not want to see their financial system collapsing; therefore they are trying to find a solution. EU leaders gave themselves deadline of October 23rd to come up with a plan to settle the Greek debt and then recover the European banks that have no choice, but to take heavy losses on Greek and possibly other nations’ sovereign debts. Now the issues involved in this crisis, is how much of these heavy losses will be taken in by the banks making the loans, and how much will be taken in by the taxpayers of the better-off Eurozone states. UK and USA are mounting pressure on the EU to settle this issue by acting quickly. This has to be avoided, so that the EU banking system will not melt down, which will definitely affect the world economy.
    There is a big problem going on here. As long as 17 sovereign states and their parliaments have to approve major actions, the possibility that there will be quick and decisive solution to all this seems distant. For the last two years, the situation in Greek is partially solved by very little effort of the Eurozone as a collective system. The Eurozone can enforce new and highly unpopular economic and social policies on the members, not by eliminating them out of the Eurozone and suffering the deduction and natural effect of a hard default. Despite the disposition in the financial press and rising equity of oil prices, it looks that in reality there is little effort, EU can do to establish a long-term solution.
    At this moment, cancelling off Greece is not the solution to the problem. Greece only contributes 3% to the EUs GDP, as compared to major disruptions to the EU’s which extends to affect the world’s banking system. It looks like that the best the EU’s leaders will be able to do is by hoping for the best.
    Our concern here remains how all this will affect oil prices and the availability of oil. Also the Greek debt crisis has been affecting the foreign exchange and equity markets of oil prices along for a rather wild ride. London’s oil was below $100 a barrel, but rose back up over $111 where it continues to be the main focus of the OECD economies. London oil has now been above $100 a barrel for the last nine months and so far shows no signs of reducing to $60 a barrel level as it did three years ago.
    The world has changed significantly since 2008. The uprisings of the Arab region and the need for more oil revenue have put many OPEC producers, especially the Saudis, in a position where oil revenues could threaten their hold on power. When oil slowly rose below $100, the act of literary expression of OPEC came out, cutting production and maintaining “proper” oil. Oil prices increased significantly. The Saudis simutaneously increased their oil production by over 1 million barrels a day (b/d) in order to make up for Libyan production. Libya had cut their production by 400,000 b/d last month as they saw prices slowly going beyond control. The message here is that the European economy and economies of the rest of the OECD are likely to undergo pressure of energy bills, which cannot be paid for and the fear of the unknown future. This will only add to the problems of those planning for bailouts in Europe as situations are going beyond once control.
    Looking at the other side of the coin, the EU authorities are unable to handle the Greek debt crisis which then spreads across the European countries and affects the global financial system. This would likely lead to serious consequences which is difficult to predict. Oil demand will drop, but by how much will it be, which is difficult to predict. If the EU’s crisis spreads into a large outcomes with the OECD economies slumping into a deep depression and all those trillions of dollars in Credit Default Swaps are “made whole,” parts of the world – Russia, Asia, Brazil, and OPEC exporters – seem likely to weather the storm will continue and the demand of oil, will result perhaps at a slower rate.

    Stiglitz, J, E. (2007, p. 290) Making Globalization Work, “The forces of global economic, social, political and environmental change are more powerful in the long run than the capacity of even the mightiest nation to shape the world according to its interests or perspective”.
    In the same book, he said “If there was ever a country that should have being responsive to the calls of those seeking a fairer globalization based on an international rule of law, it should have being United State: its Declaration of Independence does not say, “All Americans are created equal,” but “all men are created equal.” The founding Fathers were concerned with the universality of the principles that they were articulating so well, and the Declaration of Independence, the Constitution, along with the Bill of Rights, the first ten amendments to the Constitution, provided the model for much of the rest of the world; the creators of those documents would have been pleased with the adoption by the UN of the Universal Declaration of Human Rights on December 10, 1948. (p. 292).
    We are now entering a different chapter of life, which will affect the world. This will affect the global economy/financial system, political, social and human rights of all human being in planet earth.

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