Total Pageviews

Wednesday 9 November 2011

Ideology gone mad.

I am not a political person but I cannot help being outraged by the ideology behind the Euro experiment. It was conceived with the best intentions but pushed through with a political ideology which overruled all common sense. All politicians are guilty of subscribing to this grand ideal doing anything to join even at the expense of fiscal rectitude. Greece fiddled the books to get in now ordinary Greeks are paying an awful price. The other Euro nations turned a blind eye when they knew Greece should not have been allowed to join. Also it was obvious some time ago that Spain, Italy and Portugal were not able to restructure their economies within the Euro straight jacket. It was at this point that the experiment became evil. Before the Euro the above economies would deal with any lack of competiveness by gentle devaluations. Now if they left the Euro the devaluations would be massive. It has been suggested that if Greece for example went back to the Drachma it's value would halve against the Euro. Every Greek with savings would see the value halved and any debt they had in the Euro Zone double. Who knows what the consequences would be? Obviously tourism would start growing again which would probably be the only plus point. So the Euro elite in failing to admit that the experiment had failed and thereby allow counties to exit with small devaluations, push through ever harsher internal devaluations by making these countries cut wages, pensions, welfare and everything else thereby sacrificing the only thing which could work, that is to say growth. So you have youth unemployment in Spain at 40% This is nothing short of criminal in the name of ideology! the more efficient German economy has benefited enormously from a weak ( for it's economy ) Euro but is unable to stomach the cost of equalising the debt of other nations into one common pot. What a nightmare and nobody knows where it will lead.

No comments:

Post a Comment

Plesae leave feedback and comments. It would be nice to know you visited. Thank you.