Comments on: Europe’s disastrous summit

By: SleepyJohn

SleepyJohn — Tue, 13 Dec 2011 19:34:19 +0000

I think the likelihood of the eurozone nations emerging from this cosy, sensible-sounding ‘fiscal compact’ with so much as the right to paint their own lamp-posts without EU permission is on a par with my chickens preparing cold fusion. This whole euro-crisis is a sham and a scam, deliberately engineered by the EU, through its policy of massive handouts and easy loans, to bring the eurozone nations to their knees so they would cry out for rescue at any cost. They will be rescued, but the eventual cost, without a shadow of doubt, will be the cessation of their existence as independent nations.

Are we seriously expected to believe that the massed ranks of expert EU economists were incapable of predicting the virtual certainty that such an ill-matched currency union would collapse? They knew full well it would only work under the aegis of a political union, which it was clear the people would never accept. So they came in through the back door. Those strutting on the EU stage may be buffoons, but the ones pulling their strings are not.

I have no idea of the financial and political implications of Cameron’s decision, but I’m sure I can safely say that few ordinary Brits would want to be ruled by these deceitful and callous dictators. And there can be little doubt that all the EU members will, sooner or later, be sucked down this euro plughole.

By: ofilha

ofilha — Mon, 12 Dec 2011 15:18:24 +0000

In the US, just before the collapse around 2008, all the pundits, the economic experts, people like the writer of this article were all commenting on how there was no end in sight to the great prosperity. People like me and my friends, non economists by trade or interest, were puzzled how home prices kept going up and we asked, there is no way home prices can keep this trajectory without wages also increasing and wages were not increasing. But who cared or listened, the party went on like gangbusters. Everybody was an “investor”. 2012, nobody can buy a house even if the interest rates are the lowest in years. I usually throw lots of salt when reading articles like these by experts like these.

By: Basil2744

Basil2744 — Sun, 11 Dec 2011 17:02:37 +0000

The UK are not a team player. As a result their membership was doomed from the start.
Like a spoiled child, they are only happy when they win all discussions/arguments. They think they are still in the Empire Period, when their opinion was the only one worth considering.
Europe is better off without the UK.

By: mregl

mregl — Sat, 10 Dec 2011 04:20:41 +0000

“He’s also alienated the UK on the very outer fringes of the EU. When the UK needs friends, they’ll remember this moment and think again. It isn’t the EU or the Euro that have been hurt by this, but the UK.”

Pray tell me just when has the EU ever been a “friend” to the UK?

By: DonutBoy

DonutBoy — Sat, 10 Dec 2011 01:29:24 +0000

Take a step back from the trees and consider the forest. Is it credible that the solvency of nations depends on a committee meeting? Or has that die been cast?

I think the latter. This is about some plot twists, the final chapter is known.

By: whywait

whywait — Fri, 09 Dec 2011 23:20:09 +0000

Heropass, debt is not a snapshot; the trajectory is also crucial. Would you buy Spain’s debt with 20% unemployment and stagnating economy or Germany’s growing economy?

Best to use one’s intellect instead of one’s prejudices.

By: fsaraceno

fsaraceno — Fri, 09 Dec 2011 22:12:08 +0000

I agree on two accounts:
a) the measures taken are not even close to what we needed to put the EZ back on track: symmetric adjsutsment of current account surplus and deficit countries, and sovereign debt insurance by the ECB
b)Nobody can afford the disaster we are slowly making happen

But, there is a but. There actually is a good news. Pressed by emergency, the European leaders had no choice but to refuse to stand by the usual blackmailing by the UK. Reinforced cooperation is now reality, which means that if our leaders come to sanity, and decide to do what it takes, they now have a precedent, and they will be able to do it without the UK.

So let’s cross fingers: once we restore sanity, we are done!
http://fsaraceno.wordpress.com/2011/12/0 9/a-first-impression-on-the-eu-summit/

By: h2000

h2000 — Fri, 09 Dec 2011 22:01:52 +0000

If I were back in the UK, I wouldn’t be worrying about pissing off the EU countries who brought this collapse on themselves. They are the ones who will be needing the UK as a friend, not the other way around.

By: h2000

h2000 — Fri, 09 Dec 2011 21:59:43 +0000

The Euro never stood a chance from the beginning. The grand idea of a European Unites States missed the whole point of why the US works. Best it fail quickly and get the pain over with and everyone can move on.

By: disqus786

disqus786 — Fri, 09 Dec 2011 21:18:19 +0000

Europe’s “summit” will turn out to be a complete failure in the long term. The UK is lucky it escaped (for whatever reason). It’s amazing that some people actually want to join the “losers” on the Continent.

By: FifthDecade

FifthDecade — Fri, 09 Dec 2011 19:32:13 +0000

You really can’t blame the European leaders for this, the only leader against the rescue plan was the UK’s Prim Minister David Cameron who is trying to repair a split in his party. He claims he wanted an opt out for the UK on the Financial Transactions Tax (which wasn’t on the agenda) or there’s no deal to install checks and balances to control overspending in the Eurozone because he’d veto it.

So what happened? Cameron got no concessions, and 26 out of the 27 EU member states decided to set the agreement up between themselves anyway. So, not only did the UK gain nothing, but by walking away from the table Cameron has removed the UK from future discussions on economic matters that will affect UK growth, jobs and companies.

He’s also alienated the UK on the very outer fringes of the EU. When the UK needs friends, they’ll remember this moment and think again.

It isn’t the EU or the Euro that have been hurt by this, but the UK.

By: Heropass

Heropass — Fri, 09 Dec 2011 19:13:30 +0000

“The sticky issue that does need to be resolved is that the common currency allows the PIGGS to spend like their smarter and harder working European peers.”

This is actually not true. The fact is that Ireland and Spain spent less than the Germans but they still got hit by the financial crisis. Best to use one’s intellect instead of one’s prejudices.

By: MyLord

MyLord — Fri, 09 Dec 2011 17:38:55 +0000

Perhaps they could agree to abolish and replace the ECB. That should be popular.

By: NoahNehm

NoahNehm — Fri, 09 Dec 2011 17:17:18 +0000

The Czech press is reporting that to help prop up the Euro, their banking sector will have to put up a sum of money that is around 10% of their total bank holdings. The government is balking, saying that they will only make such a move if it is approved in a referendum.

There is no way that this can be held together, given the opposition around Europe.

By: AngryInCali

AngryInCali — Fri, 09 Dec 2011 17:06:41 +0000

If Germany is going to push the fiscal profligacy delusion to the end, there’s really no solution, is there? Eventually, depression in the PIGS would have forced them out of whatever union could have come out of this summit, since there’s no way for their economies to grow without some inflation, and there’s no way Germany is agreeing to a new arrangement that will allow for inflation.

If the question is not if, but when some countries give up the Euro, is it better for them to drop out sooner or later?