The End?

Jeremy Warner (again... Yes, I know) explains in two short paragraph why the euro is a doomed currency.
But perhaps the biggest sin of the lot was effectively to render all credit default swaps (a form of insurance against default) on sovereign debt essentially worthless, or void, by making the Greek default "voluntary".

This has made it impossible to hedge against eurozone sovereign debt purchases, and thereby destroyed the market. Worse, it's made investors believe that the euro cannot be trusted, that it'll repeatedly find ways of reneging on contract. That's the point of no return. This is no longer a serious currency.
It was inevitable, I guess. The Truth will set you free, Our Father told us. And 'You have to lie' will eventually come and bite you in the rear.

1 reacties:

DP111 zei

The real question now is whether the EU itself will survive the collapse of the Euro.

I dont think it will. There has been too much arm twisting, threats and blackmail against countries and their leaders. Such bad blood is not going to be forgotten. Italy, Greece, Spain, Potugal and even Ireland, will exact due when the time comes.

Far from uniting Europe, the EU has sown the seeds of suspicion and acrimony for decades to come. It wouldn't surprise me that even visa and border controls come back. Why not? Germans like to travel to southern Europe, winter and summer. As these states are hard up, they can implement visa requirements to earn some money.

LinkWithin

Related Posts Plugin for WordPress, Blogger...