An American observer comments on French politics.
Funny --- and it shows very clearly that:a) those who want to leave the Euro embrace some pretty nutty arguments.b) the Euro continues to be a German racket. However, the argument that the only and pretty crap alternative is to go back to the ERM is not as nuts as it seems. Is the £ pegged to the €, you might object. Well, no - and the volume of UK trade with Germany is huge. However, that's all very well, but it's only true in times of universally ridiculous interest rates. When rates rise and the differences start being significant again, the dangers of wild slides based on factors other than national competitivity will re-emerge - the precise factors which led to the need for an ERM in the first place. If a strong, and above all securely strong and rising, DM puts pressure on other,devalued, currencies, including the £, to offer high rates if they want to borrow at all, we'll all be like Greece. It's a vicious circle that only Mr Soros and his ilk benefit from. In that sense the Euro is like nurse - don't let go for fear of finding something worse.
Europe worked before the euro and currency devaluations were the traditional medicine for restoring competitivity among EU states. The euro has proved to be a straightjacket benefitting Germany above all and now to the detriment of France. It can't work unless and until a single EU minister of finance and a single tax authority dominate the union , and that ain't gonna happen. The French polls suggest a majority want out and they are not alone. The edifice is being propped up by Draghi's smoke and mirrors.
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