It took more than just guts for Cameron, the PM of the United Kingdom, England to Obama, to vote against joining in with the rest of the Eurozone to abdicate each country’s individual sovereignty to basically the EU Brussels crowd that is run by Merkel and Sarkozy with the former calling the shots. The EU Brussels crowd is pushing for the right to basically override member country’s duly elected and authorized national legislatures if the country fails to meet up with the economic parameters set up by Brussels.
While it sounds nice that each member country could only run deficits less than 0.5% of their GDP, this number is not a realistic goal if the countries like Italy, Greece, and Spain have to remain under the burden of the Euro. It used to be cheap for Americans and other Europeans to travel to these countries due to the exchange rates. This allowed the tourism trade and the exports from these countries to flourish as they and their products were a “good deal”.
Now, having to operate under the Euro, they have no relative advantage over France or Germany in enticing tourists or providing bargain products via exports due to exchange rate differences. The debt restructuring portion of the new plan is also DOA. 200 Billion Euros in trade for national sovereignty is not much of a deal. Besides, how can Italy, who currently is running a Debt:GDP percentage of 120%, going to cut that down to 100.05% quickly without currency restructuring and debt renegotiation?
The “plan” is a set up to make each of the agreeing countries, that are in tough shape, accept “help”, money, from Brussels and the IMF in the hopes that these countries fail so Brussels can step in and make these country’s citizens serfs of Germany/France/Brussels. Bailouts are the bait to suck these countries in than force their takeover for their own good. This scheme is set up to foster animosity amongst European nations not seen since before WWI and WWII.
Cameron’s actions may be the only sane move so far in this whole Euro Debt Crisis. Britain stood pretty much alone in WWII against forces on the Continent during the early goings of WWII. They appear to be doing so again but are facing worldwide condemnation for their actions. While the British Pound has taken a beating since the depression of 2008, the country is still standing and functioning. They still need to deal once again with their socialist cancers that have re-infected the country since Thatcher left office. But, they are Brits after all and their independent nature, from whom we inherited our own, may keep them from committing national suicide by joining in with the Euro Mania. I will never forget one of the taxi drivers we had in London who said to us, “We Brits would rather be the 51st state in the United States than be a full Euro member of the EU”! And that was 5 years ago before this recent mess.
Great Britain may be in the unique position of consulting with those countries who are in the most precarious positions financially and helping them to see that staying with the Euro is not their only option. Make no mistake, these debt laden countries have no easy choices. Their debt is their debt and they will have to deal with it. I can tell you from first hand knowledge that Italians would fight to the death for Italy and their Lira but not shed one drop of blood for Brussels or the Euro. They are just scared to death of the debt and the consequences they face but they would rally together as Italians but never as Europeans under the control of Germany/France/Brussels. The UK may be able to step in and help them individually to renegotiate their debt and get their budgets under control. These countries could trust the UK as they have no vested interest in taking them over which cannot be said for Germany/France/Brussels.
The EU experiment was a good idea at the time but poorly thought out with an even worse implementation. When you premise is to be able to compete against someone, the United States, rather than to flourish as a people, then you start out on the wrong foot. Today the Euro and the EU are thought to be TOO BIG TO FAIL. Heard that before? They are not. But it will take guts by the citizens of each of the troubled countries, help from friends like the UK that have no vested interest, and patience by a world community that really does not have a lot of options. The United States, during a Obama administration, will be no help to the struggling countries as Obama is an international socialist, so the consolidation of misery under Brussels is apropos. Besides, his father hated the Europeans and blamed them for all of the ills of Africa and the rest of the colonized world so if Europe destroys itself that would be justice for his family.
All we mere mortals can do is sit back and watch as this unfolds. We all know here that Too Big To Fail is nonsense and merely a way to remove more and more liberties from citizens via confiscation of private property by big government. Why aren’t governments ever TOO BIG? Good luck to Cameron and the struggling members of the EU. Buffet and Soros will be their trying to pick the Euros off of the bones of these great societies while their citizens struggle for their very survival.