Inflation and production cost differences cause irreparable financial desequilibrium and cause havoc in Euro zone
Countries with different inflation rates are are bound together into the common Euro currency. No more corrective currency devaluations ! Production cost differences create serious permanent economical and financial imbalances and fan hostility between nations. Germany resents paying and guaranteeing crippling amounts of money, worth several years of federal government budget. Greece resents forced austerity, wage reductions and severe recession. The Euro causes suffering, injustice and resentment among European nations. The Euro should have never been introduced as common currency for economically diverse nations.
Euro breakup scenarios
- The weakest nations need to leave the Euro.
- Or the strongest nations could leave the Euro.
- Or the Euro could split into 2 blocks.
- Or all European nations need to be equalized: Diversity of European Cultures dooms the Euro. Greeks need to work more then Germans, Dutch to spend more then Italians for the Euro to function.
A breakup would be painful. Germany has guaranteed and loaned too much. Loans are too. The European central bank bought lots of potential default papers, in order to transfer losses from banks to the tax payer.
But every year these loans increase further. Greece, Italy, Spain have become too uncompetitive and indebted. `Germany’s currency is under-valued, salaries are too low, leading to enormous export surpluses.
Coins and bills of Greek, or German currencies would need to be minted, causing serious logistic problems. .
Finland leads the way
Finland could leave the Eurozone rather than pay other nations’ debts, says Jutta Urpilainen
The finance minister stressed that Finland, one of only a few EU countries to still enjoy a triple-A credit rating, would not agree to an integration model in which countries were collectively responsible for member states’ debts and risks.
She also insisted that a proposed banking union would not work if it were based on joint liability.
- Euro break-up: Let Germany lead the northern core and France the rest 05 Jul 2012
- German top economists suggest citizens to protest the Euro policy
"We need A Europe of sovereign nations", said General DeGaulle’s
DeGaulle, French hero, general, and ex-president, had the right vision. He wanted collaboration of sovereign nations, not forced equalization of European nations.
Continue reading “The Euro destroys Europe. Euro breakup necessary to save Europe.”