Germany is “softly” invading Europe again, ironically with the help of France. Germany and France do not want to lose their perceived world power position that the Eurozone affords both countries. The Eurozone’s GDP is slightly larger than the US. But, individually, Germany at $3.4 Trillion and France at $2.7 Trillion are dwarfed by the US GDP of $14.5 Trillion. But, the Euro crisis is putting a dent in the designs of Germany to maintain control over the EU. Even the head of the EU in Brussels is fighting Germany for control which is ironic since Germany was primarily instrumental for creating the EU Government in Brussels. Brussels is pushing for EU reforms that would give Brussels ultimate power and control over member nations’ budgets and thus their societies. They are further proposing the issuance of joint Eurozone bonds that would cement the EU as the One Nation Entity for Europe. But, Germany and France have other designs on the EU that would give Germany and by extension France, control over the Eurozone. Alas, I really do not think either power group will be able to save the Euro. And that is a good thing!
On November 1st, we published an article discussing how, when and why the current Euro crisis came about and why the Euro should be abandoned in countries that cannot live up to the currency requirements of the Eurozone. The article was titled, “Eurozone-Too Big To Fail? Our Fate is Linked to Theirs!” and can be found at: http://wp.me/pY51c-s2 .
The Euro was a good idea with poor execution and even worse expansion goals. The only way each of the member nations will survive is to revert to their own currencies. Yes, this will be a mess while we go through this but what is the alternative, a European version if TARP? That is nuts. WE have to stop creating bigger and bigger world bodies, banks and institutions that we hold up as too big to fail. If they are too big to fail, then we should tear them apart into smaller more manageable entities.
WE need to learn our lessons and start to stabilize this world economy once and for all.
- All nations should stop printing money to buy back their own debt.
- Stop all bailouts and allow entities to reorganize under whatever bankruptcy rules they are governed by.
- Start restricting national budgets so they do not consume more than 18% of the nation’s GDP.
It is not too late to salvage the global economy but we need to keep our eye on what should be our primary goal, personal liberty. Debt creates shackles for citizens whether it is personal or governmental. Too Big to Fail needs to go by the wayside now. We can’t afford to keep rewarding incompetence by those we elect by bailing out their mistakes…