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  • Posted by pete
  • 27 October 2011



So let's get this straight...

Spain owes Germany $200 billion, so borrows $100 billion
from France and $100 billion from Britain in order to pay
them back. But Britain is skint, so we borrow $100 billion
from Germany to give to Spain to pay back Germany.

Meanwhile, Ireland owes Germany $60 billion and is struggling
to pay them back, so they borrow $30 billion from Spain and
France to pay back the Germans. But Spain and France can't
cover the loan, so they both plead with Italy to lend them
the money. The Italians already owe $1.4 trillion to France,
Germany and Britain, so they borrow the $30 billion they need
to lend to Spain and France to pay back Germany from Britain,
adding to their already sizeable debt.

But by now Britain is really struggling, so in order to lend
Italy the money, they borrow another $1 trillion from Germany
to give to Italy to pay back Spain and France who borrowed it
from Germany in the first place. By now Germany is starting to
feel the pinch too, so they ask Britain to lend them $5 billion.
"No problem", says Britain, we'll just ask Spain.

Confused? So are they.