Now for the real solution to the EU and Eurozone perpetual Debt Bomb crises:
http://mythfighter.com/2015/07/07/will-t...-the-rich/
“Because of the Euro, no euro nation can control its own money supply. The Euro is the worst economic idea since the recession-era, Smoot-Hawley Tariff. The economies of European nations are doomed by the euro.”
And now, it is ten years later, and still we read an article about how Greece must convince its rapacious lenders to allow it to burn in the frying pan of economic ignorance and misery.
So deeply in debt you cannot pay? Well, then borrow some more. That is the troika’s self-serving solution.
And now it is four years after I posted: There are two, and only two, long-term solutions for Greece and the other euro nations. (Thursday, Nov 3 2011), which included these lines:
In giving up the drachma, and taking on the euro, Greece voluntarily surrendered the single most valuable asset any nation can have: Its Monetary Sovereignty.
Greece now is monetarily non-sovereign. There is an absolute rule in economics: No monetarily non-sovereign government can survive long term without money coming in from outside its borders. Germany, another nation that gave up its most valuable asset, the mark, and also is monetarily non-sovereign, survives on exports.
Nevada, which also is monetarily non-sovereign, survives mostly on tourism (aka gambling). No monetarily non-sovereign can survive long-term on internal taxes or borrowing.
By contrast, Monetarily Sovereign nations do not need money coming in from outside their borders, because they create unlimited money simply by paying bills.
For Greece and the other euro nations, long term survival requires one of two, and only two, events:
1. Adopt some form of a sovereign currency, and become Monetarily Sovereign
or
2. The EU give (not lend) euros to its member nations as needed.
Event #1 requires reversing the ill-fated switch to the euro.
If Greece re-adopts the drachma, and becomes Monetarily Sovereign again, it can free itself of the appropriately despised austerity, and build its economy.
Other euro nations, especially those with a negative balance of payments, soon will follow.
Or, if Europe adopts event #2, and creates a political union, perhaps a form of “United States of Europe,” it could become the most powerful economic force in the world, surpassing even the U.S. and China.
Long term, which path will Europe follow?
Europe will follow the path the bankers and the super-rich feel will be most profitable for them.
Very little consideration will be given to the welfare of the populace, the same lack of consideration for the people that led to the creation of the euro.
Despite what you have been told, the purpose of the euro never was to ease trade, nor was it to establish peace in Europe. The purpose was to give the rich bankers, the troika (European Central Bank [ECB], the European Commission [EC], and the International Monetary Fund [IMF]), absolute control over the people.
Remember, Monetary Sovereignty is the most valuable asset any nation can have. With Monetary Sovereignty, a nation can buy anything it wishes. It can buy prosperity. It can buy health, housing, education, food, convenience and pleasure for its citizenry.
By adopting the euro, each member nation handed over its most valuable asset to the small group of politicians. And oh, how the bankers loved it.
They could lend euros to nations already deeply in debt, knowing they had the financial blackjack of the troika on their side. They could suck the life out of the people, via ever-greater taxes and ever-smaller benefits — and it all was in the name of “fiscal prudence.”
If the people complained about austerity, it became a moral issue. They were “lazy takers,” who were part of a “welfare society” and who “expected the government to take care of them.”
It was a no-lose, highly profitable situation for the rich, so long as the populace didn’t get wise to the scam.
Now, that the Greek people have wised up, the rich desperately are trying to hang on to the geese who have been laying those golden eggs.
My prediction: The rich will find a way to continue the racket, just in a different form. The only way this could change is in the rare circumstance where a strong and caring leader emerges.
Do you see any such on Europe’s horizon?
Or will the geese keep on a’layin’?
Rodger Malcolm Mitchell
Monetary Sovereignty