FALL OF EURO WOULD COST UK £200BN, WARNS BANK OF ENGLAND

Sir Mervyn King warned banks

Friday December 2,2011

By Macer Hall, Political Editor

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BANKS must brace themselves for “extraordinarily serious and ­threatening” turmoil as the eurozone unravels, the Governor of the Bank of England warned yesterday.

In the most urgent alarm call yet, Sir Mervyn King admitted that the financial system was now “in crisis” because of the ­single currency meltdown and ­second credit crunch.

Figures from the Bank showed that the British economy could face a ­colossal liability of almost £200billion if the eurozone collapses.

Sir Mervyn made clear that Britain is in danger of being dragged deeper into the economic mess despite being outside the eurozone.

And he warned that resolving the ­crisis was “beyond the control” of the Government or the Bank of England.

He said: “In the UK, we must try to bolster the resilience of our financial system to better withstand the storms that may come in our direction.”

His extraordinarily candid assessment came just a day after Downing Street officials revealed that contingency plans for the break up of the eurozone had been “stepped up”, while confirming a second credit crunch was underway.

France will push with Germany for a new European treaty refounding and rethinking the organisation of Europe.

Nicolas Sarkozy

David Cameron will today hold crisis talks with French President Nicolas Sarkozy in Paris as EU leaders try to thrash out a deal to save the euro ahead of a summit in Brussels next week.

Last night Mr Sarkozy said he would hold a crisis meeting with ­Germany’s Angela Merkel on Monday, adding: “France will push with Germany for a new European treaty refounding and rethinking the organisation of Europe.

“There can be no common currency without economic convergence without which the euro will be too strong for some, too weak for others, and the eurozone will break up.”

He added: “Europe is no longer a choice. It is a necessity.”

Mr Cameron acknowledged yesterday that an economic storm was “engulfing Europe” and threatening Britain.

“This is a tough time for our country, there’s no denying it,” said the PM. “The job of the Government is to try to explain to people calmly and reasonably how we are going to come through this.

“And how we are going to keep Britain safe in this debt storm and build a better future for the country as we do so.”

But many in the City and other financial centres around the world increasingly believe the exit of Greece – and possibly Italy, Portugal and other debt-hit nations – from the single currency system is imminent.

At its final meeting of the year, the Bank of England’s Financial Policy Committee said the euro crisis was the “most significant and immediate threat to UK financial stability”.

The FPC added that UK banks’ exposure to the government debts of Greece, Portugal, Italy, Spain and Ireland totalled £14.8billion. Total exposure to the vulnerable five, including private sector debt, is £191.8billion. Sir Mervyn said UK banks were in a better position than ­continental ones to withstand future financial shocks. But he added: “Ultimately, governments will have to confront the underlying causes.

“Resolving these wider problems is beyond the control of any UK ­authority.” Sir Mervyn refused to be drawn on details of any contingency plans the Bank or the Government may be ­drawing up in the event of a collapse in the euro.

Meanwhile, the Bank’s deputy governor Paul Tucker warned that the financial situation was “perilous” and admitted that “anything could happen”.

Market jitters around the world eased slightly yesterday following emergency action by the Bank and its international counterparts to shore up the euro.

So all of these scare tactics are going to help? I'll tell you want the contingency plans will be, AUSTERITY! So again we will have to bail out the greedy bankers for their euro folly. I'm no financier but I like many others have seen this coming for years.

My advice for what it's worth, to buy physical gold & silver.

Daily Express - NOW EU STEPS UP SANCTIONS ON IRAN

William Hague said the attack had pushed relations between the UK and Iran to their lowest level.

Friday December 2,2011

By Martyn Brown, Political Correspondent

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BRITAIN turned up the heat on Iran yesterday as it spearheaded international pressure for the country to halt its nuclear programme.

Ministers meeting in Brussels agreed to work on measures to target the Islamic state’s oil and energy sector.

Meanwhile, EU countries imposed tougher sanctions on more than 180 Iranian companies and individuals.

The sanctions follow a UN report linking Iran to the development of a nuclear weapon.

Iran denies the claims, insisting its nuclear programme is for energy.

The EU measures come two days after hundreds of Iranians stormed the British embassy in Tehran.

Britain announced on Wednesday that it was expelling all Iranian diplomats from London after pulling its own out of Tehran.

William Hague said the attack had pushed relations between the UK and Iran to their lowest level.

As it emerged yesterday that Iranian authorities had freed 11 students arrested for storming the British embassy, the Foreign Secretary warned that pressure on Iran should be stepped up to “increase the isolation of the regime” from the international community.

The EU demonstrated clear unity and solidarity with the UK on the outrageous attacks on our embassy in Tehran.

William Hague

After yesterday’s meeting in Brussels, EU ministers said in a statement: “The council agreed to broaden sanctions by examining, in close co-ordination with international partners, additional measures including those aimed at severely affecting the Iranian financial system, in the transport sector, in the energy sector.”

The EU has already frozen the assets of hundreds of Iranian companies and taken steps to stop investment and technological help to Iran’s gas and refining industry.

Mr Hague added: “The EU demonstrated clear unity and solidarity with the UK on the outrageous attacks on our embassy in Tehran.

“No difficulty in relations can excuse the regime’s complete failure to protect diplomatic staff and property.

“I strongly welcome the EU’s decision to intensify pressure on Iran following the UN report by sanctioning another 180 individuals and entities.

“The EU made very clear that it will not bow to Iran’s intimidation and bullying tactics. We will not back down and agreed today to work on further sanctions.

“We want Iran to negotiate meaningfully about its nuclear programme. Despite events this week we still want a diplomatic solution.”

The EU foreign ministers also discussed the deteriorating situation in Syria, with Mr Hague highlighting “a link” between the Syrian and Iranian regimes.

As far as Syria and Iran were concerned, he said, “human rights and democracy have taken a step backwards”.

Hang on a minute, before we start yet another war I would like to see a shred of evidence that Iran has nuclear weapons in production. & I mean a bit more evidence than that highly suspicious assassination attempt that never was. I would also like to hear why our embassy was 'stormed' (by 11 students) from the Iranians point of view. 

 I don't buy this nonsense, this smacks of yet another  'Dodgy Dossier' & it's just like the EU to jump on the band wagon of the political elite, sorry but I'm calling BS on this one!

Daily Express - PREPARE FOR END OF THE EURO, BANKS TOLD

The turmoil has fuelled speculation that the end of the euro in its current form may finally be in s

Thursday December 1,2011

By Macer Hall, Political Editor

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ALARM at the economic turmoil in Europe intensified last night after the Government admitted preparations for the chaotic collapse of the euro were being “stepped up”.

Downing Street is understood to be embroiled in intensive “contingency planning” for Greece and possibly Italy, Spain and Portugal quitting the eurozone.

British banks have been urged by the City’s watchdog to brace themselves for the collapse of the single currency.

The financial services Authority warned that the unravelling of the 17-nation eurozone could wreak havoc on the UK banking system.

City sources said Hector Sants, chief executive of the FSA, made the plea at a crisis meeting with senior bosses from high street banks.

And, in a sign of growing panic, a senior French politician warned the crisis could trigger “the return to violent conflict” in Europe.

Alain Juppe, France’s foreign minister, added: “It could be the explosion of the European Union itself.”

It could be the explosion of the European Union itself.

Alain Juppe, France’s foreign minister

The turmoil has fuelled speculation that the end of the euro in its current form may finally be in sight.

The alarm followed the soaring cost of borrowing in Italy and other debt-hit Southern eurozone nations as well as growing fears for the French banking system.

Following the FSA warning, the Prime Minister’s spokesman said: “We have been stepping up our contingency planning but I don’t want to get into detail on that.”

He said the Government, the Bank of England and the FSA were working together “ensuring they have the capacity to take action” in the event of Greece or other countries quitting the euro.

This has been on the cards for years, it must be getting close if the 'die hards' are even admitting it.

Daily Express - WE PAY FOR EU LOANS MADNESS

Rome’s subway costs £128m a mile

Thursday December 1,2011

By Martyn Brown, Political Correspondent

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BRITAIN is facing a colossal bail-out bill to cover “suicidal” EU loans to ailing Italy and Greece.

Brussels’ finance arm is still lending billions of euros for projects like improving Rome’s underground train network and Greece’s energy grid.

But the UK must cover 16p in every pound the European investment bank loses should the nations fail to repay, as is likely.

That would see Britain picking up a £450million bill for loans in 2011 alone, including £128million for just an extra mile of Rome’s rail track. Debts for other years’ loans would run into billions.

Ukip’s economics spokesman Godfrey Bloom said: “It’s irresponsible for the EIB to continue handing out suicidal loans for projects these countries simply can’t afford.

“And it’s outrageous the UK taxpayer is again bailing out the type of lend-and-spend policies which got us into this mess.”

The EIB, run by EU states and with George Osborne among its governors, said: “We don’t speculate about economic circumstances of member states.”

It’s irresponsible for the EIB to continue handing out suicidal loans for projects these countries simply can’t afford.

Ukip’s economics spokesman Godfrey Bloom

Daily Express - 20 REASONS TO BE CHEERFUL

By next year I defy you not to be caught up in the infectious excitement of the Olympics

Thursday December 1,2011

By James Delingpole

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SO the economy’s not exactly booming, the cost of living is rising, pensions are shrinking and the Chancellor says we’ve got another six years before things start picking up. But it’s not all bad. Look on the bright side – as they did in the trenches, as they did in the Blitz, as we’re about to now...

1 STERLING. We’ve still got the pound. Incredible, really, when you remember how hard Tony Blair, Chris Huhne, Ken Clarke, Michael Heseltine, Peter Mandelson, Nick Clegg and all those other Eurofanatics tried to get rid of it. So as the euro goes down the pan we can watch as spectators rather than victims.

2 PRINCE PHILIP. Yes the Queen’s wonderful, we know that, but what about her horribly underrated consort, 90 this year? We’re always being told about his “gaffes” (much funnier than the po-faced media pretends they are) but when he hits the nail on the head, as he did with his outspoken remarks about wind farms the other day – “absolutely useless” – he speaks for us all in a way that our tiresome, career-safe politicians never do.

3 STANDARDS. Despite everything we know in our hearts what’s wrong and what’s right. Consider, for example, the reaction of Len Goodman, senior judge on Strictly Come Dancing when footballer Robbie Savage showed off by removing his dancing trousers to reveal his blue football shorts. Goodman wasn’t having it. “You do it good and then stick all that stuff in,” he complained. Exactly. If you’re on a dance show learn to dance. Prancing around like a Soho stripper impresses no one.

Theatreland booms during a depression and it’s no coincidence London’s West End is brimming with must see entertainment

4 TOLERANCE. Amazingly, given the effects of New Labour’s open doors immigration policy, we remain a hugely tolerant nation. The YouTube footage of the white English woman on a tram ranting about immigrants was a massive hit on the internet this week: not because people agreed with her, more because they were so shocked.

5 UKIP. Its rise and rise has put it on course to become Britain’s third largest party. Whatever your politics this is fantastic news for democracy: unlike Lib-Lab-Con, UKIP offers voters a genuine alternative to the Big Government, Europhile, high tax political mainstream.

6 EDUCATION. Michael Gove’s Free Schools revolution is restoring rigour and quality to our education system. Gove has succeeded where every one of his Tory predecessors has failed thanks to his rare intelligence, his quiet firmness and his unfailing politeness which disarms even the rabid Trots of the teachers’ unions.

7 REV. If you haven’t yet seen the BBC’s sleeper hit comedy about an inner-city London vicar you’re in for a treat. The performances are pitch-perfect, the scripts sharply observed and incredibly funny, and it manages to examine complex issues such as faith sensitively and intelligently but unsentimentally. If we can go on producing TV of this quality there’s hope for us still.

8 THE OLYMPICS. All right, you and I suspect it’s a spectacular waste of money but by next year I defy you not to be caught up in the infectious excitement. My kids can’t wait, nor can your children and grandchildren. We owe it to them not to be too cynical.

9 CHEAP ENERGY. “Cheap what?” you gasp. But it’s true. We don’t need wind farms, we don’t need solar, we don’t even need nuclear because beneath Britain we’ve just discovered enough (clean, inexpensive) shale gas to supply our needs till well into the next century. It’s like the North Sea miracle all over again.

10 CHEAP FOOD. However bad things get we’re not going to starve. Scientists have just discovered the cheapest meal ever: the toast sandwich provides 330 calories and costs just 7.5 pence. Even if inflation hits Weimar levels we’ll still be able to afford that.

11 TECHNOLOGY. California has Silicon Valley, in London’s “Silicon roundabout” we now have Tech City – a hub of entrepreneurs in the tech industry (including, I’m proud to say, my little bro Charlie and his MarketInvoice company). Chris Huhne’s pretend “green jobs” won’t save our economy but our tech entrepreneurs will.

12 RUSEL SAGE. He’s the brilliant designer who did the suite at the Goring hotel which Kate Middleton slept in the night before her wedding and is now the star of TV’s The Manor Reborn. His quintessentially English style – eccentric, shabby-luxurious, warm, witty – has revived our artisan craft industry.

13 THE EURO. Sure its collapse will be ugly and messy but think of the upside: soon we’ll be able to buy our own Greek island for a few drachmas, a Spanish villa for a handful of pesetas and still have plenty spare to buy the punts for a boozy weekend in Dublin.

14 THEATRE. Theatreland booms during a depression and it’s no coincidence London’s West End is brimming with must see entertainment: Jerusalem, James Corden in One Man, Two Masters, the new musicals Shrek and Matilda. Soon they’ll be travelling to a playhouse near you.

15 STRIKES. The union militants may well claim otherwise but yesterday’s strikes were a failure. Heathrow airport kept running and nearly half our schools stayed open. Remember too that these strikes were only voted for by less than one quarter of union members.

16 ENVIRONMENT. The UN’s Durban climate conference was a huge flop. With the release of the Climategate 2.0 emails, the “global warming” scam is almost over. So now the UN, the EU and the Government will have less of an excuse for green taxes and silly regulations on the kind of lightbulbs we’re allowed to use.

17 CAMARADERIE. Talk to anyone who has lived through times of hardship – be it the Second World War or the first Great Depression – and what they remember far more than the suffering is the sense of community, the making the most of small pleasures, making do and mending. Friendships and family bonds will strengthen, we’ll all pull together.

18 CHINA. Soon the Chinese (and the Indians and the Brazilians) will be the masters of the world so we might as well get used to it. What’s bad for our ego will be good for our peace of mind: relax – from now on whatever happens is out of our control so let’s learn to go with the flow.

19 BRACING RESORTS. In the good old days of course everyone holidayed in Britain. None of that poncy Mediterranean/Caribbean warm sea nonsense for us: it was the good, honest chilly wholesomeness of the North Sea, English Channel etc. Now that abroad is too expensive to visit we can rekindle our past and revive our hardy national character.

20 MIRACLES. From the sudden storm which destroyed the Armada to the Prussians coming to help us at Waterloo to the evacuation of Dunkirk, Britain has a proud tradition of escaping disaster by the skin of its teeth. So we know deep inside that however bad things get we’ll never go under.