Quote:
Originally Posted by Chris
This is the only way a single currency can work. It's how it works in the USA; some states are richer, some are poorer, and they have their own limited ability to set and collect local taxes, but there are rules and fiscal transfers to keep a unified US economy from collapsing.
The logic is inescapable - they either abandon the Euro, or watch it collapse, or else put in place the measures required to operate it properly.
Just be thankful Bliar never got his way or else we'd be getting sucked into this now too.
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It is the only way that the Eurozone will work and that is proven everywhere including within the UK. It looks like for political advantage Merkel is the block on progress and judging by her address to the Bundestag it looks like her way or the highway for the others. Germany with its track record of efficiency and growth would naturally rise to a controlling power within further integration and there may be historic memories for others to to find that potential situation unacceptable.
The actions by the central banks earlier this week may all be for nothing and the outcome for Europe does not look at all good.
Whether we like it or not our future is tied to the outcome both on a national level and within a global context. Mervyn King is not warning the banks to brace themselves for a financial storm because he wants to be a doom and gloom merchant. In barely concealed language he is warning of a potential financial Armageddon which is fairly unique in BofE history.
With central bankers the rhetoric is usually several degrees short of anything alarmist as spooking the markets is usually avoided. Using the usual upgrading of comments against reality I suspect he fears not just the Eurozone problems but a failure of the entire global fiat monetary system.
When the Federal Reserve gets involved in Europe's woes along with us, Japan and others they are not acting out of largesse or human kindness. If the holder of the global reserve currency is involved it is truly serious and the time of who did what or why with our politicians past and present may soon be replaced with OK where now as within a near bankrupt country we will all be in it together.