The last month of data flow from Europe is nothing short of depressing. It seems that the history of the Eurocrisis can be summed up as a repeated effort to snatch failure from the jaws of defeat. The Euro and the policy framework that supports it is now clearly inconsistent with anything but sustained recession....
Bottom Line: How high does unemployment need to rise, how much output needs to be lost, how much poverty must be endured before European policymakers realize that the policymakers see that the framework supporting the Euro politcally is an economic failure?Amen.
And the
Tim Duy's Fed Watch
When Can We All Admit the Euro is an Economic Failure?
Tim Duy
7 comments:
The euro doesn't have to be a failure. But if Europeans want to make it a success they need to move forward toward the creation of a unified European fiscal authority that can take advantage of their unified monetary authority and put some serious action behind the EZ's unfulfilled potential.
That can't happen because the EU is not a democracy.
The EU and it's institutions already have too much power and control over national policies.
Until the political structure of the EU does change there is no hope for the EU and the animosity will keep increasing.
The Euro and the clowns in charge, remind me more and more of the dead parrot sketch from monty python.
Inacio, maybe they should create a revolutionary new democracy then? Seems to me there are only three choices for Europe: (1) give up the European dream and go backward into nationalism and division, (2) stay with the status quo and accept the plutocratic capital technocracy the Eurozone has become, or (3)mobilize progressive forward to create a new multinational democracy on the financial wreckage of the existing order.
The title of the blog post should be changed to read, "When Can We All Admit that the Euro is a Weapon of Class Warfare?”
The euro currency has not “failed.” On the contrary, bankers and the 1% have successfully used the euro to destroy decades of socialist and quasi-socialist policies, leaving bankers and a plutocracy in total control. This was the euro’s purpose from the start.
Any nation that surrenders its Monetary Sovereignty soon enters the debt / austerity death cycle. There are no exceptions. Ever. The first euro-nation to dump the euro currency will be the first nation to rise from the current depression.
@ Konrad
Right, see Greg Palast, Robert Mundell - Evil Genius of the Euro
The euro is Europe's Reaganism-Thatcherism. Same people behind all of it.
Any nation that surrenders its Monetary Sovereignty soon enters the debt / austerity death cycle. There are no exceptions.
Not true. Nations can benefit from surrendering monetary sovereignty if they also surrender some fiscal sovereignty.
The US dollar is not a failure, even though the 50 US states lack sovereign control over it. That's because there is a national government with a national legislature that controls a national treasury, and taxing and spending into and from that treasury.
Now this is all up to Europeans themselves. But if they are really serious about the noble and long-term cause of European unity, then they should consider moving forward boldly toward greater integration.
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