Tuesday, December 13, 2011
Lord Lawson says the single currency of the Euro is ‘doomed’ and Cameron was right to use his veto, we await the train wreck on grassy knoll
The European Union is a good idea; I am and always have been very much a supporter of it, right from the start.
Unfortunately, the European dream has turned in the wrong direction in a number of issues.
The single currency on the surface seemed like a good idea, but the problem is the idea was flawed.
Europe is too big, too diverse; one currency by its very nature demands one fiscal policy right through-out the entire eurozone.
That cannot happen as it involves a loss of sovereignty and leaves countries experiencing economic problems hamstrung.
Europe’s problems aren’t unique but the solution of austerity and trying to grow out of the problem by loading up more debt is wrong.
Debt growth is a killer.
Some people like former chancellor Lord Lawson believe that Europe will return to growth and prosperity much more quickly if the single currency is broken up.
That idea has merit but this action in itself won’t be enough, banking and its practices must be addressed.
On top of that new service models of local and national government need to be developed.
We hear a lot of talk about cost efficiencies by governments but these are counter productive, like peas on a plate, they keep getting moved around, somewhere in the chain, someone suffers through reduced services.
David Cameron has used Britain’s veto, which has put him at odds with the other 26 states; he is right and at the same time wrong.
The City of London is a problem, before the 2010 there was a lot of talk about tackling bankers, this turned out to be a lie, a complete lie, the Tories and Lib Dems dropped that dead donkey in the most expedient fashion.
"I don't know how long it's going to take for Europe to return to growth but it will certainly take much longer if they don't accept the reality and take the necessary steps."
"Trying to go on and preserve the eurozone is a tremendous mistake."
Lawson has an excellent track record, when in 1989, he made one of the first speeches predicting the political and economic crises it would create.
Unfortunately, lesser beings pressed on with they know better and we have all seen how that has turned out.
Europe will have to address a large number of serious issues soon or later, one thing is certain is that pain is coming much more than we have seen before.
It will be a tsunami of political unrest coupled with a toxic mix of austerity and debt.
Lord Lawson says the Euro is doomed, it is an opinion held by many, with talk that Germany could return to its old currency.
And talk of gold backed currency returning, highly unlikely at present with such debt burdens effectively making that decades away.
The price of gold is sky high.
The route of success is default, from the ashes there lies the opportunity to rebuild and re-capitalise.
Greece should totally default, why they haven’t done so is a sign of weak political management.
Italy isn’t much better and Spain and Portugal are bubbling away with their own internal problems.
One interesting happening was the sale or lack of sales of German bonds just recently; we need to start raising the interest paid to people with savings to a decent return.
The 99% need to see growth rather than all money just being shipped across the table to the 1%.
David Cameron feels his veto buys breathing space for the UK, but if he doesn’t use his time wisely, he will be a spectator at the train wreck of the Euro becoming unstuck and it will ripple across Britain as well as Europe.
Its like being on ice, you know once the slide starts you are going down, and when it comes it will be like quick sliver.
And a plan is need for that moment.
The Campaign for Human Rights at Glasgow University