Comments on: Euro banking union won’t come fast http://blogs.reuters.com/hugo-dixon/2012/06/18/hugo-dixon-euro-banking-union-wont-come-fast/ Mon, 18 Apr 2016 14:55:08 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: SamuelReich http://blogs.reuters.com/hugo-dixon/2012/06/18/hugo-dixon-euro-banking-union-wont-come-fast/comment-page-1/#comment-382 Wed, 20 Jun 2012 13:11:21 +0000 http://blogs.reuters.com/hugo-dixon/?p=349#comment-382 Re: Greece, Italy and Spain. A lot of voters in Germany and much or Europe even in the USA do not understand: When you loan people more money than they can pay, unless you have something like slavery, you do not get paid. You give them the service or object if give the money someone may take it. The holders of Greek, Italian and Spanish debt should eat it. If that causes a banking problem some banks should be nationalized to make business loans to those who can pay.

There are in most bankruptcy courts in most Western nations that limit payments to that income above necessities.

But every one would feel better if there Europe wide court system for bankers and Politicians who commit fraud. So far few if any politicians or bankers got jail in the USA for the sub-prime crash.

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By: Gordon2352 http://blogs.reuters.com/hugo-dixon/2012/06/18/hugo-dixon-euro-banking-union-wont-come-fast/comment-page-1/#comment-381 Tue, 19 Jun 2012 20:40:37 +0000 http://blogs.reuters.com/hugo-dixon/?p=349#comment-381 All of what you say is true, but what you leave out is more important.

(1) First and foremost, the eurozone is NOT simply another USA, just waiting for the right shove to make it into a US of Europe.

Anyone with a knowledge of European history will know a banking union will not work in Europe because the sociopolitical environment that divides the Europeans is truly MASSIVE compared to the US.

And when you consider the history of the US attempt to cobble together a “real” US of America — it has been a total failure for everyone but the wealthy class in case you don’t know that — the whole idea suddenly becomes ludicrous in the extreme.

(2) To have a functioning economic union such as you describe, there has to be an effective enforcement mechanism. Simply setting up yet more rules and regulations without any means of enforcement will NOT solve ANY of the present problems in the eurozone banking system.

It is no different than setting up a constitution to govern a country, but then not allow for a police force or army to enforce what you have set up.

The idea of simply taking a country to court to enforce regulations for a new US of Europe is stupid beyond belief. Do you people have any idea of what human nature is really like? This “solution” being proposed will solve NOTHING. All it will do is to buy some time (maybe) until the next financial crisis or disaster.

The problem is the wealthy class doesn’t understand anything except the monetary reasons why this should happen. And the monetary reasons always seem to benefit the wealthy class at the expense of those they want to “save”. Isn’t that a strange coincidence?

The classic example — the “poster child” of arrogance and stupidity of one who is determined to interfere where it doesn’t belong — of this type of economic foreign policy and the disasters it generates is the US geopolitical policy.

Total failure to understand the “local culture” and what is important to them continues to doom US foreign policy — and even more incredibly, we NEVER learn from our mistakes.

I see no discernible difference between that and what the global wealthy class is attempting to do.

That is why the reality of a US of Europe will never occur, or if it does, it will have as many fatal flaws as the original agreement, with an even shorter life span.

Nothing you have done thusfar has done any good.

In fact, it has only succeeded in making the eurozone far worse because you are burdening it will debt that can NEVER be repaid.

Due to the ever-increasing amounts of debt to the wealthy class, real growth CANNOT occur.

What you are doing is preventing any kind of recovery, thus bringing on the disaster you are supposedly hoping to avoid.

Apparently, none of you is capable from learning from your mistakes either.

Unfortunately, the wealthy class rarely has to suffer the consequences of what they have done, so there is no incentive to learn — especially when everyone else has to suffer for their greed.

This is NOT just my opinion. History tells us, or should if we had any sense, that I am right and you are wrong.

It is far better the global economy crash now, before more damage is inflicted by meddling in what you clearly do not understand.

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