| Collapse of the Euro? Jihad Opening. |
 |
 |
 |
|
Greece teeters on the edge of total financial collapse with its Sovereign Debt Crisis - which its EU partners are not going to rescue given its complete and fraudulent financial mismagement. Other countries, notably Spain, Portugal and perhaps Ireland, are experiencing similar Sovereign Debt problems in which their debt/deficit rises to a dangerous level of their GDP. In Greece's case, I've read that this is 13.3%. Note: The U.S. Deficit is about 10%.
The French bank's warning was echoed by Mats Persson, Director of the Open Europe think-tank, which campaigns for reforms in Brussels. He said: 'The eurozone is facing a fully-fledged crisis. The Greece episode has made it painfully clear how flawed the euro project was from the very beginning. 'Even if Greece receives a one-off bailout it would not solve the real problem, which is the huge differences in competitiveness between the eurozone's richest and poorest members.
And in the Socialist Mentality of 'Entitlements are Paid by Somebody Else', we read:
Countries that are highly uncompetitive are normally able to slash interest rates and devalue their currencies to prop up their economies. But this is not possible within the euro, given its one-size-fits-all economic governance. The implication is that weak, peripheral eurozone members will have to suffer years of painful deflation and tumbling living standards, as well as draconian budget cuts, in order to adjust. Harvard University Professor Martin Feldstein, a long-standing sceptic on the euro, yesterday said the single currency 'isn't working' because member governments have no incentive to keep their public debts under control. 'There's too much incentive for countries to run up big deficits as there's no feedback until a crisis,' he said.
|