Photo: Motiqua / Flirkr
Andrew Alexander has been a sceptic of the Euro all along. He believes that the Euro must fail.He actually believes that the Euro is a conspiracy, a conspiracy to form an impossible political union by first fusing the currencies together.
But the question then is whether the Euro leaders have a common will to actually form those political bonds.
Steps to those political bonds include:
1. The issuance of Euro bonds for the entire union.
2. The merging of treasuries or at least a treasury relating to the common defence.
3. The election of a leader of all of Europe, with a congress or some form of democratic government.
Of course, the individual nations could still have limited treasuries, like the states. They already gave up the ability to print their own money so one would think they could make the transition to a national government.
But think of what that means! Is France really going to give up all nukes and share them with Germany? Are the PIIGS going to trust that alliance of Germany and France?
I can tell you this, the British are thanking their lucky stars that they don’t have to share their nukes with Germany! No stinkin’ Euro for them!
Andrew Alexander believes that this sovereign meld is a big lie. He believes it because the nations within the Eurozone are still fiercely sovereign and independent. This would cause guerrilla wars and all manner of mayhem in his opinion, if the attempt were made to meld the Zone.
I don’t have a stake in this argument. If the Europeans want to meld into a United States of Europe, go right ahead. But if they don’t the Euro is a joke. Face it.
It is all about trust. As things stand now, you can’t really peg, as Alexander says, the PIIGS to the Euro because that is like pegging them to a gold standard. They would have a better chance at it if they were using their own currencies. They may not be able to afford buying stuff from Germany, but they would give the Germans a great vacation for the money!
So, I look at the Eurozone as being very predatory. The lending came from the big banks in the north. The PIIGS are like homeowners in the US, up to their eyeballs in debt. Homeowners in the US with any sense walk away from their toxic loans. Time the PIIGS did the same thing.
If the Eurozone cannot afford their highly leveraged banks then I admit this is a big problem! Each country will probably have to take each bank’s insolvency as they arise.
But the issue is the union. It appears that Germany and France are being predatory in threatening no bailouts for the PIIGS but rather a focus on the banks. That is like the US government bailing out the banks but not the homeowners. That ruins trust in the banking system. If banks from one country to the next cannot trust each other, how can these countries trust each other?
The Eurozone was a conspiracy to attempt the impossible, or it is just like our bank problems, a big scam. The bankers made the money for their handlers who are living it up. All the while, the politicians are trying to fix a leaky faucet with a screwdriver. Alexander doesn’t think they have the tools either.
And if they don’t want to be a United States of Europe, this union is hopeless. That people would write trillions of dollars of toxic derivatives on these alliances, jeopardizing the entire world economy, is truly scandalous. You have to wonder if some people knew the outcome, whatever that is, from the beginning! Or do they just make money regardless of the outcome?
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