Sunday, June 6, 2010

Hungary accidentally blows up Europe

Hungary recently had an election where the opposition party ran on a platform of promising everyone a pony.

After they won, they realized that this would be unaffordable, but didn’t really want to take the blame for making stupid campaign promises.

So they came up with a cunning plan where they tried to blame their inability to deliver ponies on the previous government’s “cooking the books”, and said that Hungary was in danger of becoming the next Greece.

Unfortunately the world markets heard “Hungary == Greece” and flipped** out.

Hungary shows how small currencies are unsustainable in a common economic area. Due to the high interest rates for mortgages in the local currencies, European banks offered Euro and Swiss Franc denominated mortgages to vast numbers of people.

Chart forHUF/CHF (HUFCHF=X)

Now Hungary is stuck and unable to devalue the Forint without bankrupting a large percentage of its own population.

Their only salvation is that the banks that lent the Euros and Swiss Francs are foreign big name European banks.

**Spangish word of the day:

flipar

a vt

  1. (=gustar)
    esto me flipa I really love this
  2. (=pasmar)
    me flipó lo que pasó I was gobsmacked at what happened **

b vi

  1. (=pasmarse)
    yo flipaba al ver tanta cosa I was gobsmacked at all the things I saw **
    ¡este tío flipa! this guy must be kidding! *
  2. (=pasarlo bien) to have a great time
    flipar con algo (=disfrutar) to really love sth
    yo flipo con esa canción I really love that song
  3. (=drogarse) to get stoned *

c fliparse vpr

  1. fliparse por algo to be mad keen on sth
  2. (=drogarse) to get stoned *

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