by Michael Smith (Veshengro)
The Euro-Zone is, according to a study by US economists Kevin O’Rourke and Alan Taylor in the recent issue Journal of Economic Perspectives—Volume 27, Number 3—Summer 2013—Pages 167–192.
The reasoning behind this belief of the two top economists is that the current Euro-Zone is not a uniform currency and economic area. Locational factors and market cycles are marked by fundamental differences and without a synchronized development of the market cycles such large economic area such as the Euro-Zone is unable to function.
The monetary politic in this case faces a dilemma. While the southern states of the EU clamor for lower interest rates there is a definite need to for higher interest rates in central and northern Europe. This, however, is not allowed under the current policies of the European Federal Bank and thus the problems are going to get worse.
Officially inflation is not permitted in the countries worse hit by the crisis and therefore those countries are attempting, via salary reductions, to create a so-called “internal inflation” in the respective national economies.
During the years of economic growth until about 2007 wages grew disproportionally in those southern EU countries aided and abetted by low interest rates from the ECB. Now we are being confronted with a heap of shards which was the Euro.
Kevin O’Rourke and Alan Taylor can foresee the day of the total collapse of the Euro as Brussels is incapable to take the required steps that are necessary for a reform all the way to a partitioning of the Euro-Zone into a northern and a southern one.
The Euro and the EU itself are a failed experiment that the powers-that-be, hellbent on creating a federal Europe as envisioned already by Adolf Hitler, are trying to force on everyone and which they try to keep afloat despite the fact that the boat is filling up rapidly with water, and that with all means possible.
Even the UK government is trying to persuade the people, even though there is supposed to be, at some time, a referendum on whether or not the UK is to stay in the EU, that the European Union is necessary for our economy and that we would have serious problems if we would leave the union.
The truth, however, is that we do not need to be in the EU in order to trade with the EU and furthermore we should concentrate, in Britain, to, first of all, manufacture things at home again and that primarily for the domestic market before even thinking of export.
The most important thing is to cut ourselves loose from imports, whether from China or elsewhere, of goods that could easily (and they used to be) made here and for about the same retail price if the corporations would not be as greedy as they are.
Manufacturing at home, however, could be done by smaller companies who might, if we are lucky, not be as greedy as the current large corporations and they might actually even be prepared, as used to be the case, produce quality products that, when they break, can – perish the thought – be repaired and thus be made to last.
The European Union is not and never was a good idea. Envisaged already by Adolf Hitler under the same title that it took already almost in the beginning, the European Economic Community, it was intended as a fascist takeover of all of Europe and it is now coming to pass with Germany being in the driving seat. They may have lost the war but won the peace, so to speak, and will do their utmost to dominate as of Europe in a United States of Europe.
The Euro is, basically, the USE's “Dollar”, but as the EU is not a union – and that one is rather flawed as well – such as the United States of America, it cannot and will not ever work on its own.
It is time to abandon the experiment of the Euro as well as that of the EU and to return to the way things were, of individual nations trading with each other without some unelected fascist super body interfering. And, after return to normality, it then is time to also abandon the nation state for smaller entities such as tribes so that people can really participate in politics.