EMU has achieved the exact opposite: unemployment is soaring, there are deficits everywhere, austerity cuts driving economies into deflationary default, civil riots and disobedience breaking out
The epicentre of Global Crunch is now the eurozone, and the epicentre of the epicentre is now Spain, not Greece. Why? Because Greece is hopelessly bust and can never repay its debts, and the Troika examining the books of fudge and drift in Athens know that, but Obama asked them not to tell the world what everyone already knows, until after the US election on 6 November.
Now why did he do that? Because he hasn’t got a clue about economics, and leaves that to Ben Bernanke, whose QE initiatives are now about as effective as pushing on a piece of string, as they both face the US’s Fiscal Cliff, of their own making …
If a Greek bust can have that kind of effect across the Atlantic, what would a Spanish one do? Spain is completely bust as well! Her public finances are shredded, her banks (apart possibly from the two biggest – but who knows?) are bust, the regions are bust, the municipalities are bust, and now the Germans realise that the whole of Spain is bust, once the inter-correlation of these various forms of indebtedness are totted up.
Therefore they have withdrawn from the EU July promise to provide €100.0 billion offer to the Spanish banks, so much for the effectiveness of the EU and the eurozone’s ‘One-Size-Fits-All’ absurdities, and its own blinkered adherence to the Law of Unintended Consequences.
Unintended Consequences? Absolutely, it was never meant to be like this for the Constructive Dreaming Rationalists, the flat-earth Eurocrats and third-rate non-taxpaying politicos who forced the democratically-deficit Maastricht Treaty down the throats of an unsuspecting public, without so much as a vote, back in 1993.
This was the treaty that spawned all this nonsense. Some of us actually read it at the time, unlike many of those that signed it, and realised that it contained the seeds of the destruction of Europe, of Charles de Gaulle’s “Union des Patries”, of our idea of a Common Market, and of everyone’s post-WW2 belief in democracy itself.
The Maastricht Treaty spoke of harmonising everything across twenty-seven very different economies, from bananas to condoms, from taxes to borrowings, from deficits to defence, and all in the name of preventing WW3: a dafter list of petty aspirations it is hard to imagine!
Instead, its EMU provisions have achieved the exact opposite: unemployment is soaring, there are deficits everywhere, austerity cuts driving economies into deflationary default, civil riots and disobedience breaking out, the North divided against the South, and it’s all going to get worse because the same politicos and bureaucrats who have created this unholy mess think the answer is more Europe, not less.
And those of us who could see where this appallingly stupid treaty would lead us were told at the time to shut up, that we were “Bastards!”, that we were destroying the Conservative Party, that we were Little Englanders, and that we couldn’t see the future, when we saw it only too clearly!
And those blinkered fools – Heseltine, Hurd, Howe and the chairmen of BT, BP, Unilever, Vodafone et al – who said Britain had no future outside the eurozone, well, we don’t hear a squeak out of them now, as the plain fact is now all out there for everyone to see: Britain only has a future outside the eurozone, and if we negotiate a new trade agreement with the EU, we would better out of the coming catastrophe which is the EU today altogether.