Throwing good money after bad
28 September 2011
The crisis in the eurozone is concentrating minds, but not necessarily in the correct direction because the wrong minds are in charge.
There have been various solutions suggested. One is the issuing of collective eurobonds - shared debt obligations - the idea being to bind the whole eurozone together in collective financial responsibility. The problem with this is that individual nations, notably Germany, do not like it, and for it to work, it more or less presupposes political union. It did not take long for Commission president Jose Manuel Barroso to propose this very thing - only a few weeks ago he was calling for eurobonds, now he wants political union, claiming that the crisis necessitates collective action. This sounds like a shot-gun marriage, capitalising on Europe’s lack of capital.
This mindset is very risky. In spite of political denials that Greece will default and leave the euro, it sounds as if “the lady doth protest too much”. Assertion is not proof, (as Christians teach in science lessons, contrary to humanistic evolutionism), and EU leaders are vainly arguing for the unity of the eurozone. Their attitude appears to be that if one country goes down, they want all of them to go down together. The fear of this doomsday scenario is expected to rein in the financial markets - a vain hope and a last gasp from bankrupt politicians.
Various arguments are used, from the fear of losing the German lead in Europe, to a ‘strong European response’ set against ‘the narrow nationalist response’, demonstrating again that Newspeak is leading us up a blind alley. The financial markets tend to have smart, intelligent people, which is why they are not conned by Newspeak, and why they do not believe blustering, blundering euro-blind politicians.
The latest method of stealing money to prop up southern European profligacy is a new tax on financial transactions, advocated by the Commission president who wants to tie the eurozone to a sinking stone. Not only is this a tax on the city of London because most European financial transactions take place there, but it sounds like a good method of alienating financiers and slowing up liquidity even more, of finding new ‘out of eurozone’ methods of financial transactions, and of destroying the hegemony of the city of London.
Europhile politicians are in denial and they hope that they can bluff their way through this crisis. The reality is that money talks louder than politicians; and violence talks louder than money. Social unrest is the cost that Europe is paying and will pay for this political dream turned nightmare. It is time to waken up and to stop dreaming.
It is time for them to listen to old economics - to stop throwing good money after bad.
