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EU: For the eurozone, the worst is yet to come
The Telegraph ^ | 5/26/2012 | Liam Halligan

Posted on 05/27/2012 12:46:44 AM PDT by bruinbirdman

This euro crisis is now getting extremely serious. Events are happening quickly, closing-in on policy-makers and threatening to engulf us.

Across the single currency zone, fears are rising and, even in the most moderate nations, populations are becoming more restive. History is locked on fast-forward.

Some say that seemingly arcane economic policy debate doesn't matter. In the UK, in particular, but across much of the rest of Western Europe too, the political and media classes have long displayed a tendency to roll their eyes whenever anybody with even a smattering of economic insight has had the audacity to show it.

For the bien pensants, ignorance of financial issues has been a badge of honour. Economics has been dismissed as a "trade". To hold well-researched views about commerce and asset markets has been seen to be a suspect arriviste "striver". Such is the prejudice of those cosseted from economic reality, their minds dulled by generations of inherited wealth. Well, such minds created the euro and what a disaster the euro has been. And the greatest disaster could yet be to come.

Let what is now happening in Europe serve as a reminder, a 28 million decibel wake-up call that serious economic debate matters and matters a lot. Attempts to dismiss or even suppress it, because it's "hard" or "boring", have very real human consequences.

In the run-up to the eurozone's launch, there was almost no popular discussion of its inherent technical flaws. Those of us who tried to air such concerns, to wield the lessons of history, were dismissed as "xenophobes" and "cranks". So we've ended up with a eurozone so replete with inherent contradictions that it threatens now to spark financial meltdown across Europe and serious civil unrest.

Global financial markets are in a trance, a paralysis

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; News/Current Events
KEYWORDS:
We all agree now
De Volkskrant Amsterdam

Europe united at last.

"Down with Europe!"

1 posted on 05/27/2012 12:46:51 AM PDT by bruinbirdman
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To: bruinbirdman

When the Euro was contemplated and the run up to it’s introduction was nearing I recall reading many economists who predicted it would fail within 5-7 years.

The biggest issue according to these experts was the lack of a mechanism to force the member nations to adhere to the rules of the union regarding debt.

Looks as if they were right.


2 posted on 05/27/2012 1:56:36 AM PDT by galloway15
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To: galloway15

The conservatives are always right. Does not matter though, nobody ever learns any lesson that will apply to the next big idea coming from the leftist mobs. Just the same conservatives will downplay the next big idea, and at best they will be patted on the back saying “don’t worry that won’t happen”, at at worst they will be demonized for standing in the way of progress and humanity.


3 posted on 05/27/2012 2:12:48 AM PDT by BRL
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To: galloway15

Yes, I recall people predicting it would fail for pretty much the exact reasons that are playing out. It has taken longer than some of them predicted; on the other hand, since the implementation of the Eurozone (the currency, that is) it has pretty much been one crisis after another.


4 posted on 05/27/2012 2:27:57 AM PDT by TheMole
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To: galloway15
Germany has the money, the rest want it.... That simple!

Mike

5 posted on 05/27/2012 3:31:22 AM PDT by MichaelP (The ultimate result of shielding men from the effects of folly is to fill the world with fools ~HS)
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To: galloway15

Brings to mind a segment about MAED mutually assured econmoic destruction. If one goes down we all go down. A socialist utopian experiment gone wrong as usual. The evil is at work here as well


6 posted on 05/27/2012 4:04:20 AM PDT by ronnie raygun (B B)
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To: galloway15

As I recall, the referendums in several countries voted against joining the currency. The politicians then pulled an end around and joined without the permission of the people using some technicality in their treaty laws.

Now the people will take the hit, not the politicians that cheated their way into this insane currency.

Also, each country that joined the Euro was supposed to meet (before joining) certain minimum standards of fiscal responsibility. If memory serves me, at least several had to perform some serious accounting *fraud* in order to give the appearance of compliance. All done with a nod, wink and a snigger.


7 posted on 05/27/2012 6:25:48 AM PDT by ChildOfThe60s (If you can remember the 60s....you weren't really there)
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To: ChildOfThe60s

It is so mean-spirited that the hard-working Germamns won’t give up their money to support the profligate, lazy-ass socialists. So unfair, no?


8 posted on 05/27/2012 6:36:04 AM PDT by hal ogen (First Amendment or Reeducation Camp?)
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To: bruinbirdman

There is still no answer to the question of why the Germans, who retire at age 65, would be willing to provide the funding to Greece to allow Greek workers to continue to retire at age 50?!?


9 posted on 05/28/2012 10:06:32 AM PDT by Mack the knife
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