Wow!!! Give up sovereignty????????????? You mean basically have no purpose of being a country anymore? So what is the point in being German or French or Irish or Polish or Danish or Spanish or Italian? I hardly think this is what any of the 27 countries or “member states” signed up for when they joined the EU. And just because some smug, arrogant and delusional French banking bureaucrat like Jean-Claude Junker suggests such an absurd concept after exhausting every pathetic bailout, tactic and can kicking gimmick these leaches could come up with, doesn’t make this “option du numéro un”.
I mean for starters, if I am the Scandinavians countries I’m immediately sending my letter of resignation and telling every banking thug in Brussels to go to hell. Why should good countries who behaved prudently even remotely consider this anything more than some broke ass bum panhandling on the street corner for money. There is no chance the good countries are just going to throw their citizens under the bus, with the message that “hey guys, we’re doing this for the common good!” NOT HAPPENING. As far as the weak and pathetic countries like Portugal, Ireland, Italy, Greece and Spain-à aka the “PIIGS”, well the answer is a bit more complicated….technically you are all already slaves to Germany/France and IMF to begin with so I’m not even sure you have a voice at this point let alone a seat at the negotiating table. Sadly when your Debt/GDP rises to unthinkable levels, your banking system is bankrupt and you’re borrowing money from all your buddies because the free market won’t, well it kinda means you’re a modern day Kunta Kinte. Except in this case, instead of being stripped and humiliated by your white owner on a plantation in Virginia, you’re just stripped of who you are by your White collared bankers in Brussels….and as far as the strong countries like Germany and France(well more Germany then France as the French will jump into any Party with a socialistic bend), while I understand the economic benefits you received from an artificially cheap currency by staying in and protecting the Euro, at what point do the costs outweigh the gains??
It’s virtually impossible for me to see a continent whose countries are so proud and rich with history be willing to just give that up with a stroke of a pen to become the United States of Europe. Germany started both World Wars and they are going to be the ones in charge of dictating rules and economic policies? NO CHANCE. They might be an economic powerhouse and be doing more than their share to hold this together but scars run deep. The ironic part of all this talk is that this is on the highest levels…ie . What will the governments and policy makers decide? I suppose I should throw this out there because they are important and relevant, but the people of these countries (you know those taxpaying citizens) will ultimately decide what’s best for them….you can be certain they won’t be sitting at home watching delayed reruns of jersey shore from Florence, eating McDonalds, and running around town in their SUVs pretending there isn’t anything going on around them. They will take to the streets and they will take back their countries,…while we have gone through almost a full generation here that doesn’t even know what it means to protest, the Europeans seem to be quite great at taking to the streets for their causes….
So the questions becomes, is there a viable solution? and the answer is Yes but even that comes with a price tag that reads: “Hard Choices. Sacrifices. Pain.” But alas I digress since this is pure fantasy since NO ONE is willing to take losses today for the greater good. The continuous playbook of pushing off the inevitable until tomorrow and the proverbial can down the road will forever leave too much room for error of falling short of the goals of austerity while simultaneously inducing a much greater risk of being worse off then tomorrow then we would be if we dealt with the issues today by taking the pain across the board in a meaningful way though MASS DEFAULT. all at once, everyone together, whereby debt is cut to 60% of GDP. your creditors wont be happy but its a way forward so that everyone starts from a level playing field. When you buy a stock or a bond of anyone company, you know the risks and should be prepared and willing to lose if things go wrong, when you buy debt of a country, you better make sure you have confidence in their ability to pay you back with a positive real rate of return.
Jean-Claude Junker can fear-monger and talk tough all he wants, as so far over the past 3 years, bailout nation has been the best tool in getting what you want but his plan/this plan is dead on arrival so so its just time to start talking realistically about something that works for everyone and to me that solution is massive strategic defaults. TODAY. Now go back to studying for your fantasy football draft.
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By Boris Groendahl
Aug. 19 (Bloomberg) — Jean-Claude Juncker, who leads the group of euro-area finance ministers, said the countries sharing the currency must give up sovereign powers for a common “economic government” to make sense, according to an interview in Austria’s Tiroler Tageszeitung.
“An economic government without relinquishing national competencies would be dead on arrival. Quite a few people will be surprised about their own courage when we get down to business. And we will!,”
Juncker was quoted as saying in the Innsbruck-based newspaper
German Chancellor Angela Merkel and French President Nicolas Sarkozy this week proposed establishing a “euro council” as part of a planned “economic government” for Europe. Juncker said he proposed that concept when the euro currency was drawn up in the 1990s, at the time meeting German resistance.
“It was a mistake” to have missed introducing a “stringent economic coordination” from the beginning, and “those who blocked it at the time are to blame for it,”
Juncker said, identifying Germany and Austria as two of the countries opposing a joint economic government. Juncker said he was not worried about the euro currency,
adding: “But I am worried about some countries’ complacency in their attempts to fight the debt crisis.” The bigger member countries should have intervened earlier, he said.