I have always thought that the EU was a baaaad idea. How it is that nations would give up their sovereignty all for the cause of being able to compete in the world’s market place just sounded crazy to me. To add to this puzzlement I found it astonishing that these folks would agree to have the Central Bank in the very nation that would rule over them in two failed attempts this past century. How ludicrous, bazaar and so very clever; couldn’t do it by might so they found another route. Let me also bet Euros to Donuts that behind that Central Bank lies two dark entities with all the munchkins, Oppenheimer and Rothschild.
The greater mystery to me is how no one in my circle of friends and acquaintances thought anything of this affair. When I would bring the issue up of the European Union was a bad idea I was met virtually with silence by folks that would love to talk politics – which is not one of my great passions.
Then comes George with not a few very poignant and for me gratifying statements concerning this whole issue.
>>Three Months to Save the Euro: George Soros http://www.cnbc.com/id/47642499
Euro-zone governments have around three months to ensure the survival of the single currency, billionaire investor George Soros said in a speech on Saturday.
“We are at an inflection point. After the expiration of the three months’ window, the markets will continue to demand more but the authorities will not be able to meet their demands,” he warned in a speech at the Festival of Economics in Trento, Italy.
“In the boom phase, the EU was what the psychoanalyst David Tuckett calls a ‘fantastic object’ – unreal but immensely attractive,” he said.
“In retrospect, it is now clear that the main source of trouble is that the member states of the euro have surrendered to the European Central Bank (ECB) their rights to create fiat money. They did not realize what that entails – and neither did the European authorities,” he said.
The euro zone needs a European deposit insurance scheme for banks, Soros said, as well as direct financing by the European Stability Mechanism (ESM) for banks, which “must go hand-in-hand with euro-zone-wide supervision and regulation.”
The “blockage” at the moment is coming from the Bundesbank and the German government, he said. German Chancellor Angela Merkel has been cautious about increasing Germany’s support for the rest of the euro zone.
Soros believes Germany will eventually do what it takes to keep the euro zone going because of the large losses German banks would suffer if it broke up and the damage to exports which could be caused by a return to the Deutschmark, which would likely be substantially stronger than the euro.
“A German empire with the periphery as the hinterland,” could be the result of the current predicament, he warned.
“The “center” is responsible for designing a flawed system, enacting flawed treaties, pursuing flawed policies and always doing too little too late. <<
“European deposit insurance scheme for banks”, and just what entity would be able or willing to underwrite such a thing?
It is my hope that you all will forgive me this bit of self-indulgence but George makes some interesting points. The Euro is fantasy, I ask how does one insure fantasy? Germany could take the initiative to conquer Europe without a shot being fired. There are more points to this article but I feel I have already taken up too much of your time.