2012 June 02 Saturday
Euro Current Unsustainable, Disintegration Looms

Having a nice day? Me too. Think everything is looking peachy? Yep. Just leave aside a looming financial disaster, Peak Oil, and a rising ratio of parasites to the productive. No reason to let these things get you down. Things look great. But the old Chinese curse (or so I've been told) of "may you live in interesting times" seems appropo. Mario Draghi, the top guy in Europe's Central Bank, thinks the current course of the euro zone can't be sustained.

FRANKFURT, Germany—The head of the European Central Bank warned Thursday that the euro currency union is "unsustainable" without stronger political and financial ties, and called for a new course to save it from a crippling debt crisis.

What I can't figure out: Is the Euro elite just stumbling along driven more by the internal politics of each state? Or are they intentionally letting this crisis build up to such a scary looming financial disaster that they can push thru an effective United States of Europe? Stumbling to disaster? Or Machiavellian scheming toward closer union?

The euro zone is in danger of disintegration.

Mario Draghi said the central bank could not "fill the vacuum" left by member states' lack of action as it was claimed the zone is on the point of "disintegration".

Italian Prime Minister Mario Monti says Europ needs to try harder to limit the contagion. That means closer fiscal integration with the various member states getting veto power over each other's fiscal policies.

"I think Europe should accelerate its efforts in order to limit the contagion, not simply because a huge financial contagion and crisis would be a frightful event, but even more because this would dismantle support for sustainable fiscal discipline," he said.

How is this going to resolve? Are a bunch of schemers thinking "We've got this in the bag. The crisis is big enough to let us gut the remaining sovereignty in the Euro states"? Or are they stockpiling food and moving money to safer havens?

Share |      By Randall Parker at 2012 June 02 10:50 AM  Economics Sovereign Crises


Comments
Abelard Lindsey said at June 2, 2012 11:15 AM:

The Euro elite are criminal parasites. They will keep the game going as long as possible so that they can continue to loot. I think they are deliberately making the situation worse in order to frighten everyone into accepting a "U.S. of Europe" so that they can continue to be parasites. Let the Euro zone go away and the national currencies come back. The markets will recover and everything will be fine. Germany, especially, will do quite well once the Euro is gone.

Wolf-Dog said at June 2, 2012 6:49 PM:

Randall Parker wrote: "Is the Euro elite just stumbling along driven more by the internal politics of each state? Or are they intentionally letting this crisis build up to such a scary looming financial disaster that they can push thru an effective United States of Europe? Stumbling to disaster? Or Machiavellian scheming toward closer union?"

-------------------------------------------------

The answer depends on who the Euro elite is. Is the Euro elite mostly the Germans? In this case Germany definitely benefits from the euro exchange rate because the value of the euro currency (which is an average calculated from most of Europe) is well below here the German Mark would have been if Germany had its own currency. As a result, Germany is accumulating trade surpluses of the scale seen in China. On the other hand, if the EU becomes an even more politically integrated entity called "United States of Europe", then this would almost certainly imply that migration of workers would be much easier, and Germany would be immediately invaded by tens of millions of migrant workers from poorer European countries, without restrictions. And this is one thing Germans would now allow so easily, especially given that German citizenship is granted on the basis of blood.

I am sure that there will be an attempt to resolve the financial crisis by creating a "United States of Europe", but it will probably fail. On the other hand, maybe the crisis will be best resolved if Germany exits the euro and switch back to the German Mark from the beginning, and in that case the remaining euro zone countries will be able to compete much better.

Jammal said at June 3, 2012 1:00 PM:

A man was caught eating the face off another, both stark naked; another was selling powdered babies, another was carrying roasted human foetuses because he was selling them as a source of dark power. Some say it is the zombie apocalypse. I say it is plain demonic evil.

What is wrong with the human race? We have governments nowadays arming terrorists, sending terrorists into civilian areas to run amok, to cut people into pieces, set fire to them, cut their lips off, rape them, impale them with iron bars, steal, loot, torture (the FUKUS Axis in Libya). We have governments spreading lies to create the conditions for public opinion to give the go-ahead for invasions and acts of slaughter.

We have governments elected by minorities, we have acts of murder condoned by world leaders, we have military aircraft strafing houses with kids, we have military aircraft targeting water supplies and we have military aircraft bombing the electricity grid. Civilian targets.

And now in Miami we have a man walking around naked eating the face off another man. More specifically, on the MacArthur Causeway on Saturday afternoon, where police saw the man feasting on the face of another, and shot him dead.

Our cities, towns and villages are full of marauding feral children with no respect for their elders; in the UK recently a lady in her nineties was so savagely beaten in her home than she has died - her cries for help were not heard. With governments behaving like they do, using terrorists to create havoc and then blame the authorities when they try to restore order, it is hardly surprising that downstream there is a breakdown in societies because the same lack of values is apparent in both cases.

Suppose we all take action against all those accountable for a breakdown in values and morals, whether they be the rude child that answers back in the classroom, the schoolyard bully, the drunken lout who swears at an old lady, the group of youths who kick to the ground someone who told them to mind their manners, the demonic filth walking our steets and the demonic filth waltzing round the world attacking governments as they impose freedom and democracy from 30,000 feet?

What has happened, and isn't it time we won the world back to the side of decency and Good?

Isfahan said at June 4, 2012 2:49 PM:

Jammal said at June 3, 2012 1:00 PM:

It is the darkies and muzzies. PBUH, Jammal...

Leno McLendon said at June 4, 2012 3:58 PM:

"The euro zone is in danger of disintegration."

Nothing's going to happen to the euro. Nothing's gonna happen to the EU, and nothing's gonna happen to the filthy rich of any country.

Things will continue to be just the same.

Leno said at June 4, 2012 3:59 PM:

"The euro zone is in danger of disintegration."

Nothing's going to happen to the euro. Nothing's gonna happen to the EU, and nothing's gonna happen to the filthy rich of any country.

Things will continue to be just the same.


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