What Financiers Dread.
In all the frenzied discussions about the economic and financial crisis, some pleas stand out, those for fiscal honesty. Convergence within what is now the E.U. was once a credible concept, but it has long since ceased to be, for the "weaker brethren," such as Greece, Portugal, Spain and Italy, still show, fifty plus years on
from the creation of the E.E.C., scant signs of achieving economic feats to match those
of Germany, France, Belgium and the Netherlands. On the contrary, the divergences between the two groups have grown and continue to widen; the only sure remedies are:-
A. to remove the weaker states from the Euro group, so allowing them to devalue freely and effectively; and
b. to encourage all sovereign states to consider and plan an internationally co-ordinated devaluation, even, if need be, by 70, 80 or even 90%.
The alternative prospect is one of competitive, "beggar your neighbour,"
devaluations, such as took place in the 1930's.
from the creation of the E.E.C., scant signs of achieving economic feats to match those
of Germany, France, Belgium and the Netherlands. On the contrary, the divergences between the two groups have grown and continue to widen; the only sure remedies are:-
A. to remove the weaker states from the Euro group, so allowing them to devalue freely and effectively; and
b. to encourage all sovereign states to consider and plan an internationally co-ordinated devaluation, even, if need be, by 70, 80 or even 90%.
The alternative prospect is one of competitive, "beggar your neighbour,"
devaluations, such as took place in the 1930's.
Labels: Politics
posted by Michael Buck at 6:23 AM
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