Tuesday, December 14, 2010

That Slippery Slope Keeps On Tilting

Ambrose Evans Pritchard at the Telegraph (UK) had an article over the weekend that is unique in its honesty.  It's titled "The Eurozone is in Bad Need of an Undertaker" and lays out the brutal truth that the Euro is in dire trouble.  Simply put:
"The EU’s Franco-German "Directoire" and the European Central Bank have between them ruled out all plausible solutions to the eurozone’s debt crisis", explains the article heading.  (emphasis added - GB)
Farther down it contains this gem:
“If the Eurozone follows this path, either all of the sovereign debts become German public debt, or the Euro will collapse,” ... says " Stefano Micossi from the College of Europe, the sanctum sanctorum of the European Project".


An earlier article (12/8) in the Mail exclaimed, "It's not IF the euro collapses... but WHEN"

As Angela Merkel herself has said, if the Euro collapses, the European Union collapses.  When you remember the Fed "loaned" trillions to EU banks, do you think the dollar survives?

The problem, quite simply, is that there is not enough money in the EU for all of the debt that has been accrued.  The Euro is essentially funded by Germany first, then France and the UK.  In essence, to bail out the countries in trouble, if it's even possible, the upper income taxpayers in those three countries must have their lives confiscated.  It's punishing good taxpayers in some nations for problems other nations have created.  How long can that go on? 

In London they're doing this over having to pay college tuition.  What happens when you ask them to pay someone else's tuition?  Someone in a different country

2 comments:

bogbeagle said...

My own view is that the Euro Soviet will not "die" so easily.

These people have dedicated the past 70 years to the project ... they ain't gonna quit.

There have been recent calls for greater "integration". That is, a single, central or Federal Government; the idea is that this will cure all ills. Of course, there will be the need for massive redistribution of wealth; a great "levelling-down".

It is perfectly possible that there will be a sudden power-grab, I think. The reasoning will be that most beloved of the Socialists - "the Common Good".

If Cameron and Clegg decide to throw in their lot with the Euro-Federalists, who will stop them? Only a small minority of Brits is politicised ... and very often that politics is biased towards more Socialism/Fascism. (tbh, I'm not sure whether we are becoming Fascist or Socialist. But, we surely are becoming more Authoritarian - just like you guys.)

We desperately need a really good Civil War ... the one we should have had around 1790.

Graybeard said...

Thanks for the input from over there. We can watch, but can't see it as closely as you do.

FWIW, and in case you signed up to see responses, I know they've dedicated 70 years to the project, but I don't think they can stop the collapse. They simply need more money than exists in the EU. I think the EU collapses, just like I think the US does. I suppose it's possible that the EU gets "bought" by someone else, like possibly China or Russia. I'm not sure why they'd want to.

I think our Federal Reserve goes away: this is scary because it seems to me you can argue that the US Government is a wholly-owned subsidiary of the Federal Reserve Bank. The Fed is arguably one of the two or three richest companies in the world, and they won't go down easily or painlessly - for us. I understand that, at the end of the Weimar Republic, they executed bankers. I can see that happening again.