That stock News

A day that Twinkle last June, I was talking to one of our most intelligent diplomats on the future of the euro. He said, quietly, there is a serious crisis even before Christmas, and it has been suggested that he could not survive in its current form. It has been proven right on the first point. If it is right on the second is to guess anyone, but if the markets have their way, it will be.

Private, those who understand the functioning of the European Union, but that can produce the right amount of detachment thereon, admit the facade of iron in the common goal in the European project begins to crack and rust.For years, a series of pretexts was reached by the dreamers of the European dream on the ability of the union to move as a single entité.Il has become worse since the creation of the single currency, it is not, thank heaven, a member.

Club claims (or tried to claim: it is now wearing a little thin) that say large disparities between the two, as the Germany and the other as the Ireland or the Portugal economy can be satisfied in the same policy. and it could be that some countries were allowed to a measure of economic sovereignty, such as the definition of their tax rates. Technically, the deficits should be regulated, but in practice and in the interest of discharge does not applecarts, they were not: otherwise France and the Italy would have started long ago.The result is that some countries now threaten to break the old poor système.Et Ireland, with a number of public banks to oblivion, cannot turn its economy despite the heroic quantities of self-flagellation. But then, if you were trying to have a resumption of exports when your goods were denominated in a currency which is the most expensive in the world, you may be suffering too.

There is an old adage that you can't your devaluing of an economic problem. In fact, you can. It is called the market forces. This is what it did after being crowbarred 1992 exchange rate mechanism. Our grotesque overvalued currency plunged by about 30%.His prize on foreign exchanges reflects exactly what the world thought it was worth, based on the performance of our economy that is débattait.Disons not the currency was devalued: let us say instead that allowed to float, it finds its own level. We started to export more and we were able to reduce interest rates. Time of work took years four and a half after Black Wednesday, he inherited a rather healthy perspective.

There will be people in Dublin, wishing that option was open to them.Right to devalue - or have a currency value is judged by the market, in accordance with the economic policy and the performance of the Ireland itself - was sacrificed to the decision to enter the euro area in committed 1999.Irlande errors. Flooded with money, certain deductions from the EU for its compliance with the policy of neo-sovietising this institution, the equivalent of the South Sea bubble participates by irresponsible and greedy bankers who capitalize on that reflects a general European economy, not a low interest rate specific Irish. Ireland lost a sense of reality and the proportion. It has now reached the exit of the station and spotted the ticket collector: but it is not a ticket.

If Ireland faces an ugly decision.As my colleague Peter Oborne suggested, the euro?, he could: but that debt is denominated in euros, the country will struggle to repay to a strongly shrunken currency. There then by default on all or part of this debt, which it would in an almost Icelandic situation and anyone wishing to lend money to continue. It would be an equivalent of the digital age of the potato famine. All those who could get would be; those who could not be a burden to lead the recovery they were ill-equipped to cope.

The price remain is a definitive abandonment and perhaps almost permanent, of remaining Ireland .the ECB in Frankfurt economic sovereignty funded by the German increasingly more agitated contributes secretly banks faltering Irish. Indeed, it would now, colonize the Ireland. Who is that combating centuries for the independence of the United Kingdom was supposed to lead to? I doubt it. If the Ireland is out, either by the ECB or by the IMF, it will have to do what it says. And the ECB, as he eyes Portugal and the Spain and continues the Greece, eyes and concerns about the Italy begin to think that only complete bessarabiens - economies in Frankfurt, with rates of taxation, the deficits and spending control led by those who will brook trout no dissent - may produce a strong, coherent economy and European.

Such a project would simply multiply already apparent strains actuel.Ce system which is the main issue in most elections fought in most of the 16 euro area Member States? It is the economy.But what happens if the right to vote in elections change nothing to the economic policy because it is already controlled by officials unelected Frankfurt working in tandem with Brussels non-elected officials?How people from countries undergoing economic hardship because of what they consider a defective economic policy, obtain compensation?If they can do so through the ballot box, what other methods are open to them? some of you might think I me being playful and provocative, or simply exaggerating to a term such as "sovietised".But I wasn't, and I hope that you now begin to understand why.

The best solution for Europe would break the dream of all: for Germany, force of whose economy distorts the value of the euro, to leave the euro area and to restore the Deutschmark.Cela gridlock precipitation in the value of the euro, but would make things easier for sick economies within the.The Germans would lose nothing: in fact, while on the contrary, as they would a currency strength could not be diluted by profligates unregenerate and wasteful Ireland and Club Med and could everyone buys of the world with their huge economic strength.Meanwhile, everyone could regrouper.Tout country felt insulted by this (as I suspect that France could) may call instead to join the area of mark, if she was pretty mad.

Herman Van Rompuy, the President of the European Commission, has expected said yesterday that if the euro is overwritten, the European Union could descend with elle.Il was all part of terror against Ireland to accept some bessarabiens: that is to say "do what you said".Sans doubt Portugal and the Spain contact the same and make même.Combien time, however, the Germans will be happy to pay?

We, on the other hand, should be search for new markets in America and in Asie.Quand the inevitable happens in Europe - when Angela Merkel recognizes the political suicide of money spending hard-won of its foreign - wastrels voters there will be a dark age economic brief (or perhaps not so brief) area euro.Nous had better plan emergency trade as much as we can on the other hand.

View the original article here