Wednesday, May 18, 2016

Jörg Bibow — Gexit: The Case for Germany Leaving the Euro

I've been saying this for years. While I don't recommend trying to rescue the euro, the only way to do so is Gexit. But it's doubtful that the euro can survive long term anyway. Europe is not united enough politically to take the next step forward, which is a fiscal union, and without that, the situation will simply deteriorate over time. Gexit would just buy some time.

This is chiefly a social and political issue and problem rather than an economic one. The economic arrangements were supposed to lead to greater social and political unity, but that was a foolish assumption given the context. In the end, the economic context is exacerbating the social and political context.

BTW, on a similar note, the expansion of NATO eastward is another foolish attempt to unite Europe politically by creating an enemy of Russia. NATO is adding tiny states in Eastern Europe that are in the Russian sphere of influence historically, supposedly to deter Russian aggression.

No one in their right mind thinks that NATO is going to go to war with Russia over these tiny states that don't figure into anyone national interest. This is clearly a ploy to unite Europe under Atlanticism and it will also fail because none of the chief members of the alliance is willing to pony up for these smaller states which are traditionally economically dependent on Russia. It is also going to be a monster failure.

Multiplier Effect
Gexit: The Case for Germany Leaving the Euro
Jörg Bibow

1 comment:

Kristjan said...

"In this spirit I proposed my “Euro Treasury” plan that would, among other things, fix the Maastricht regime’s"

Yeah, I proposed the "World Treasury" plan to my grandma 30 years ago. How about sovereign countries want to remain sovereign? The current mess was created by dreamers like him. Things didn't turn out the way they dreamed and now they are blaming Germany. Some of the dreamers are blaming Greece and politicians who can't stay within 3% limit of government deficit.