Friday, July 20, 2012

Euro Falling Again

The markets are not happy with the Spanish bailout:

And the euro is falling again:

1 comment:

Mitch Guthman said...

Quelle surprise ! Germany just finished gutting the only aspect of the deal that made it appealing to the markets in the first place(i.e., direct loan to banks; wouldn’t be added to Spain’s debts).

The ECB and the leaders of the Eurozone are like medieval barbers who don’t understand why patients don’t get better after being bled and so they bleed them again and again until they die. They sent weak economies into the toilet with heavy doses of murderous austerity at the worst possible moment and seemed confused when demand and growth declined instead of expanding.

But even after seeing this devastation, the elites do not reevaluate their idiotic doctrine of “expansionary austerity” but instead they double down. They reject every suggestion that might improve the economic picture such as those in Paul Krugman’s new book or even the more modest proposals by ING Bank (that well known hotbed of the radical left).

I repeat: The adoption of the euro was a catastrophic error. Since the ECB and Germany have rejected any proposals likely save Europe's economies anytime soon, France’s only hope of getting out of the depression quickly and with the least amount of pain (which will be considerable at this point, no matter what) is to get out of the euro as quickly and efficiently as possible.

I still believe that a country that does not control its own currency does not control anything at all. Nothing. The idiotic decisions being taken in Frankfurt and Berlin are destroying France and Europe. France needs to get out of the euro while the getting is still reasonably good.