Skip to comments.Marc Faber Urges EU Dissolution, PIIGS to Default
Posted on 12/15/2011 4:54:28 AM PST by TigerLikesRooster
Marc Faber Urges EU Dissolution, PIIGS to Default
By jturbin | December 14, 2011 8:20 PM GMT
If I were Greece or Portugal or Spain, I would say bye-bye. I exit the EU. And the debts in EU, thats your problem.
The above commentary is from Marc Faber, author of the widely-read Gloom Boom & Doom Report. In a recent interview with Fox Business News, Faber argued that a dissolution of the European Union would be in the best interests for Europe in the long-run.
The best would be to dissolve the EU let the markets sort this out. Let the countries default, he asserted. Its going to be painful very painful. But rather than to again intervene into something that is not going to work in the long run is the wrong medicine.
Additional highlights from Fabers commentary included:
Sometimes its better to default and take the medicine then to pretend that there is no financial trouble.
(Excerpt) Read more at uk.ibtimes.com ...
Thus ends the European socialist experiment.
the PIIGS are addicted to being supported by EU (german) bankers
as long as there is slim hope from these endless daily “meetings” that their govt ministries and banks will continue to get their EU welfare checks, they will not bolt - unless Geithner makes them think the US and/or China will replace their EU sugar daddies
1. Social services will have to be pruned back and/or heavily privatized.
2. Taxation needs to be drastically simplified, probably with a 14-16% no-loophole flat-rate income tax and a continent-wide 4-5% VAT.
3. Business regulations on the European level will have to be simplified and standardized to cut down on compliance costs.
This is the only way that Europe will veer away from an economic debacle with huge worldwide consequences.
More of what the ruling class demands American taxpayers keep enabling....
Even more important:
1. Stop bailing out the banks.
2. Create their own money instead of borrowing privately created money at interest.
Italy Greece etc defaults mean deflationary forces that will reach US too. This could mean bank runs in the EU that become bank runs here. Meaning have some cash stuffed into your mattress.
Cash at home, yes, but also PMs, food, ammo etc. There is no sure way the crash will manifest. Hedge in all directions. Have an escape plan.
Are you speaking about Europe or the USA?
And what kind of cash at home? Coins plus the lower denominations of FRNs might go at a premium due to the need to make change. So that a one dollar bill may only be worth 3 quarters or 7 dimes. Or 50$ bills might be such a hassle to deal with that they really go for $43 worth of coins and lower denominations.
All the above would be in a deflationary collapse where peoples bank deposits go pooft and use of credit cards goes way down. So how do you conduct every day transactions? I have charged small $2 purchases to credit cards many times