Friday, 16 September 2011

Another Euro Crisis, Another Meeting

European finance ministers are meeting in Poland today for a two day meeting along with US Treasury Secretary Timothy Geithner to try to 'solve' the Euro collapse, something that they seem incapable of doing.

The options in reality are stark, which Merkell has not made clear to the German taxpayers, either Germany accepts full fiscal union including fiscal transfers of their money to other countries, and giving up its sovereignty all of which is unpalatable to the Germans, or there has to be an orderly breakup of the Eurozone which is equally unthinkable to other EU leaders.

Once again I'm sure that some fudged so-called solution will be thrashed out, but time is running out fast; that the world banks are coming to the rescue by pumping dollars into the market is a clear indication that something is very wrong. A 'major event' is due. Some real hard decisions have to be made. Ed Balls MP on Wednesday's BBC Newnight (circa 22 mins in) didn't even give the Euro weeks to survive in its current form.

The Euro looks set therefore to crash in chaos, and historically chaotic currency collapses lead to war, a sentiment echoed by economic advisor George Magnus on the same programme.

Maybe it's slightly overblown but the complacency of our media of the possible consequences of the eurozone problems, and collapse, is starting to feel like that sunny care-free Bank Holiday Monday on 3rd August 1914.

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