Share on Google Plus Share on Twitter Share on Facebook Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend 1 (1 Shares)  
Printer Friendly Page Save As Favorite View Favorites (# of views)   2 comments

OpEdNews Op Eds

Contagion Affects Europe

By       Message Stephen Lendman     Permalink
      (Page 1 of 4 pages)
Related Topic(s): ; ; ; , Add Tags Add to My Group(s)

Must Read 1   Well Said 1   Supported 1  
View Ratings | Rate It

opednews.com

Author 194
Become a Fan
  (191 fans)
- Advertisement -

Contagion Affects Europe


Deepening European crisis.

by Stephen Lendman

Europe keeps sinking deeper into financial crisis. Eurozone straightjacket rules force 17 dissimilar countries to live by one size fits all diktats. Flawed planning preordained eventual disaster.

Monthly more systemic cracks emerge. Money creation alone prevents collapse. That game only works for so long. 

An unstoppable slow motion train wreck promises to be ugly on impact. Too much damage was done to undo it. When it's coming who can know. Only Cassandra was good at forecasting. Her specialty, however, wasn't calling economic peaks and troughs.

Greece is most troubled. Conditions there go from bad to worse. Insolvency approaches in weeks without more cash. The more it gets, the greater amounts needed.

- Advertisement -

The Eurozone experiment is in crisis. Bailouts and fixes don't work. Grexit is inevitable. Economist Nouriel Roubini says leaving in an orderly fashion buys time but nothing else.

Other conservative analysts and euro system apologists think it's coming later this year or next. Disruption will follow. In July 1997, Thailand's baht devaluation was thought too insignificant to matter. The Asian economic crisis followed.

Thailand's economic weakness affected the region. At the housing bubble's peak, so-called experts said it reflects only 5% of GDP. Again they got it wrong. Its decline had a disastrous multiplier effect. Financial instability keeps increasing.

Expect worse when Greece exits. The ECB alone holds 50 billion euros of Greek debt. Default will hit hard. Banks with large holdings will feel it. Breaking up is hard to do.

An ugly divorce seems likely. Ellen Brown suggested five creative alternatives.

- Advertisement -

(1) "The open marriage." Adopt a dual currency system. Combine the drachma and euro. 

Better still, adopt the Argentine solution. It works. 

From April 1991 - January 2002, Argentina maintained a currency board. The Argentine peso was pegged one for one to the dollar. Massive fiscal deficits accumulated.

Next Page  1  |  2  |  3  |  4

 

- Advertisement -

Must Read 1   Well Said 1   Supported 1  
View Ratings | Rate It

I was born in 1934, am a retired, progressive small businessman concerned about all the major national and world issues, committed to speak out and write about them.

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon


Go To Commenting

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The McCain-Lieberman Police State Act

Daniel Estulin's "True Story of the Bilderberg Group" and What They May Be Planning Now

Continuity of Government: Coup d'Etat Authority in America

America Facing Depression and Bankruptcy

Lies, Damn Lies and the Murdoch Empire

Mandatory Swine Flu Vaccine Alert