Tuesday, June 21, 2011

Fuzzy Economics

After reading this paean to the Elysian Fields of Keynesian economics, I am thankful this bloke is not making policy. On the other hand, he probably has ideological siblings actually making policy. And that should terrify anyone with a lick of common sense.

What this gentleman is suggesting is Germany should be booted from the Eurozone not because its like Greece but because the country is the antithesis of Greece. Germany has a budget surplus, has cut spending, and has kept high work standards. Can not have such a success mucking up the great experiment called the Euro and European Union.

He conveniently forgets since the creation of the Euro, it has been a transfer of money. That Germany and Holland took it in the neck economically, their former strong currencies weakened by the pre-existing debt and economic weakness of countries like Greece and Italy.

Now Greece, Ireland, and Spain are teetering on the edge of economic destruction because they never changed their habits. They expect the powerhouse called Germany to keep picking up the tab of their wastefulness. After going on the hook for the staggering sum of €220billion in bailing them out, Germany is saying no more money. So socialists in Greece and this British writer are now blaming Germany for the whole mess. They do not want to admit to the fact that the Euro is an abysmal failure, it was not a magic wand to remake Greece into another Germany.

At this stage, one thing should be clear. The Euro and the EU is an artificial creation that can exist only in a carefully regulated environment. As such, better to let it break up now before the architects of the EU delusion fully destroy Europe and inflict untold suffering on people who never wanted this kind of mess.


nzgarry said...

That's on the nail Anna. I read this the other day and didnt get his point.
So far as we here in NZ are concerned, the EU is a corrupt farce on a par with the United Nations and always has been.
The french have taken every opportunity to destroy our export markets in Europe and we despise them.
I will sign off before this becomes a rant.

Anna said...

I know NZGarry. There is plenty in the EU to rant on. Like this sophisticated fraud scheme to bilk research money - http://www.nature.com/news/2011/110615/full/474265a.html?WT.ec_id=NATURE-20110616

Be nice if the investigations took down some AGW supporters.

Just a matter of time before the EU splinters. Which will be nasty.

kozhikodan said...

Hey i think your title is not apt for the contents which you have written. Fuzzy Economics is now a field of study in which students like me are studying and have a great hope in it . that is why i came across your title and was really expecting something else. your content was good but the title is fuzzy.