@chris McCarthy wrote:
It’s my god damn right to make fun of the people that now have been shown that we where actually right. My biggest opposition about the EMU is that sovereign countries transfers even more of their power to a quasi democratic institution like the EU. I never even thought it would turn out this bad and in retrospect even the folieheads were spot on.
Fair enough I suppose.
But the Euro is not alone is it? It is the same for Sterling and the Dollar is it not?
Not at all. There is no lender of last resort with Euro, unlike every other currency on the planet. The Euro is also unique in having som many different economies sharing a currency with no way of re-balancing the differences between then. There is no fiscal union between the countries, unlike say the UK or USA states.
The Euro has been designed to fail, unfortunately. I’m not happy about it becuase it was a good idea and could have been a major currency. The benefits to everyone using it have been obvious.
The Italians have just voted 150 – 12 for austerity measures, they get a new government this next week, Greece likewise, Spain very shortly also via its electorate. I don’t see any majority, anywhere in the 17 who are saying they want to come out of the Euro though Ardun, do you?
The issue about austerity versus spending is during a recession is a defining issue among economists. Applying austerity to Greece or Italy means their ability to generate tax income is reduced which makes their interest payments increase. Neither country can afford austerity and applying it simply increase the likelihood of default.
The solution is for the ECB to print money, but they still don’t get the message and the Germans have their constitution thing. Maybe the EU should tell the Germans to tear up their constitution. 😆