Too much word, not enough intrest
. So can someone sumarize this for me please.
The article is largely about how the Euro was intended to unite Europe economicly
and politically, and is failing economicly in part because currencies are not political.
whats going on in Europe is quite relevant to what happens here in the US. the increasing yields on the PIGS debt is crushing economic activity in these countries and their citizens are getting tired of austerity measures (as they should) inflicted by the IMF/banks (who are the ones who really should be getting austere) as evidenced by today's riots in Greece. the situation is hopeless b/c GDP's continue to drop and increasingly larger actors are at risk of default (Spain). this is the problem with debt based money; eventually the interest payments engulf all productive output. bad debt litters the balance sheets of every country. this is a worldwide system design flaw and stems primarily from letting one private interest group (bankers) control the currency issuance of their respective countries thru their central banks. as yields rise, GDP falls, forcing yet higher yields, and further economic contraction. WE HAVE HIT THE WALL in terms of debt saturation b/c the banks refused to take their losses and instead dumped it onto govt's (the people). this is why small business surveys have been terrible.
the Euro was doomed from the beginning. trying to force together different cultures, attitudes, and work ethics isn't possible just b/c u fuse the currencies into one. certain groups will always be lazier than others and will seek to get somethin for nothin. The PIGs were happy to borrow at the lower rates grandfathered to them by the Northern countries; not only did they build their Club Meds, they actively used them. the Germans and French foolishly lent them unGodly sums of money to do this (very profitably to the banks) and when the loans went bad just dumped them onto the ppl. where have we heard this before? they keep threatening the PIGs as if their countries will break off Europe and sink to the bottom of the ocean when everyone knows eventually the default is coming and its the PIGs only salvation. CDS are rising again as is my short on the Euro. i think the flash point will be Ireland, maybe Greece, in terms of who will default first. even a restructuring is a huge blow to the euro. its coming and i happen to think its here.
Europe is the reason why i don't believe in a one world currency like the gold bugs espouse. its just not possible. we are a diverse world of peoples with different idea and needs. this is why gold and silver are starting to drop and the stock market will reverse down. its time. batten down the hatches.
