Monday, 20 August 2012

Open Letter on EU Economic Insanity


Dear George,
The market is taking Super Mario at his word – Hurrahh! Europe and the EURO is saved!!!!!!!
Having failed to work in the guise of the ERM to fix exchange rates (and we all know what the ultimate cost of this was), the ECB under Super Mario is now trying to concoct a similar exercise focused on interest rate control on bonds!!!!!!
The Super Mario and Mr Hollande are two wonderful examples of the Gordon Brown school of financial management   -  IDEOLOGY!!  throw money at a problem and you will sort it out - spend now tax later!  Never thinking  - ‘what if the growth does not return? where does that leave us’.  They just do not seem to get it, do they.  It was their loose types of policies that got the world financial systems and economy into its current mess – yet they think more of the same will get us out of it?  If Europe (and the Bundesbank) allows itself to be dragged down the Mario/Mr Hollande path – heaven help us – particularly future generations.   
Indeed, I previously expressed my concerns to you (and the FSA) over the dangers of the appointment of Mario Draghi.  Another EURO Luvvie and technocrat. Of course the major irony is that Mr Draghi has demonstrated his lack of wisdom at financial management and was in some way, during his time at Goldman Sachs, partly responsible for overseeing the financial SWAPS that were partly behind the global credit crisis (on the back of the social engineering experiment originated in the US by the Clinton administration). I find it most alarming this man is now being ‘trusted’ with the ECB’s coffers?!!!!!!!!!!!!!!!! Akin to the ex head of Goldman Sachs now one of main financial adviser to the Obama government or the coalition taking financial advice and guidance from Ed Balls. 
Everything that is apparently going on, suggests the planning is now well advanced for Greece’s exit from the EURO – despite all the denials.  We have of course heard many denials of the ‘inevitable’ by European politicians and ministers over the last few years!!
The damage that would be done following the collapse of the EURO (on the back of a Greek exit) has been seriously overstated and exaggerated by many self serving unelected EURO minister (TWIT), just like they said that any individual countries who failed to become a part of the EU or EURO would seriously damage a countries future prosperity - yet another lie and miss-truth with plenty of clear evidence to the contrary.
In Europe they still do not get it. Half the polices introduced by the EU have been very expensive for the lightweight economies to finance – fine for Germany’s manufacturing based moneymaking machine.
Germany have benefitted significantly over the years from the weaker Euro – where would they have been if they had still had the D’mark. Whilst imposing all the austerity measures on everyone the EU continues to spend and waste money hand over fist without any real cross checks and oversight on its wastefulness.
The debt problem in Europe could be solved quite easily by getting rid of the EU - except for freedom of trade – the original concept and plan. The cost of funding and running the EU will continue to rise exponentially and hence more and more of each individual country’s tax revenue will be required to fund the ever increasing cost of running this gargantuan administrative monster, leaving individual member countries with even less funds to do things in their own countries and repay existing accumulated debt.
To solve the problems – the EU think further integration and hence even less flexibility is the answer. No! greater flexibility is what is need right now in Greece, Spain etc. not more rigidity. Yet even today Germany are declaring they want more say and control over everyone else as ultimate paymaster!.
Before anyone starts – this is not Xenophobia, more a factual assimilation based on where I have been sitting and from what I have observed and read over the years. Germany continue to try and achieve through stealth what they failed to achieve by force – increasing control and influence over Europe. They have benefitted from the weak Euro, had the rest of Europe help cover the cost of the re-unification of Germany of which West Germany has been the biggest benefactor.
When are the rest of Europe and the so called wise economists going to waken up to the fact that we need less Europe and more flexibility. Further integration will fail to solve the root problems of Europe and the Euro, and the even more rigid EU monster the supposedly ‘wise’ men are currently seeking to create will ultimately be even less manageable and more cataclysmic to deal with when reality finally kicks in and takes back control from the ideology.
Gary H