Saturday, 05 November 2011 09:26 'A lot has been said about the Euro's problems, most from a purely economic standpoint. It is clear that the imbalances that the Euro created in Europe are not sustainable. But economics are of lesser import here. The Euro was not created to build wealth but as a step toward a World Currency. To rule the world, one must first rule Europe. Clearly, the Euro is the central bankers' pet project.'
Germany and its satellites (Netherlands, Finland, Austria) are much more competitive than Club Med. Because of the Euro the latter group of nations cannot devalue their currencies resulting in trade deficits and net capital out flow to the North. Therefore the Euro's existence depends on a permanent bail out mechanism for the South which not sustainable.
Saturday, 5 November 2011
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