The future of the EU has run its course. It never had a chance to succeed. These countries need to go back to what they were. I feel for people in Europe but......we need to look to ourselves and work on our own country now. We cannot support the world or we will become just like them. I believe there are some at the top of our government that would enjoy this if it were to happen.
Oh,the huge manatee! Those evil Germans and French — they gave poor widdle Spain cheap loans.
Almost the entire article is b.s. — but, that sentence is a zinger.
The article comes close to making sense, when it mentions the lack of monetary policy tools. If there were no Euro-zone; the currencies of Spain, Italy, Greece (and the other PIIGS, Portugal and Ireland) would floated downward to reflect the relative strength of their respective economies. (That happened here in Canada, where our $ slid to 62% of the U.S. dollar, before rising again to parity — more or less.) In retrospect, it's plain to see — the PIIGS would have been better off, if they had never been allowed in the Euro zone.
Just when I was feeling a bit hopeful about the defeat of the Socialists in Spain, Mr. Evans-Pritchard (who is quite conservative, at the right-hand edge of the British Tories) injects this nasty bit of realism into the mix. He seems to approve of the Spanish voters' choice, whilst simultaneously saying it's likely too late.
I read all this gloom and doom, and agree with much of it, but am left to wonder whether we are faced with fire (hyper-inflation), or with ice (deflationary depression). In the first instance, gold would be a good option; in the second, cash or near-cash. The path we are on now seems to be a nasty combination of both, and will hurt a lot of people: inflation in life's necessities (food and fuel), and deflation in assets (housing and equities).
I may be becoming as gloomy as Mr. Evans-Pritchard.
Per British comedian John Cleese
The Spanish are all excited to see their new submarines ready to deploy. These beautifully designed subs have glass bottoms so the new Spanish navy can get a really good look at the old Spanish navy.
Germany put a gun to their heads and FORCED THEM to borrow the money. :)
Yes, a major deflationary depression is coming to Europe, then probably the world.
