Tuesday, July 7, 2015

The EU however is an unelected septic tank.The Common Market (that we were given a vote on but deliberately and criminally lied- to by our own politicians who saw nothing but a huge trough to get their fat faces in) was actually a good idea. What we have actually got is a Fourth Reich....The EU "owns" about 200 billion in EFSF bonds it sold to finance Greece the past few years. The member states will have to pay the principal and interest as it comes due. Fortunately, were Greece to leave the EU, the money to do so is available since Greece is a net drag on the EU budget and the money the EU now sends to Greece through its various programs and agencies would be more than enough to cover the EFSF bonds. That the loss of these revenues would further crush the Greek economy is unfortunate but that is Greece's problem not Europe's!...That the Euro and the EU are a horrible construct is beyond doubt. Roger Bootle made a compelling case a couple of days ago that the EU, even if there were full political and fiscal union, has become a drag on economic growth with its regulatory apparatus and fixation on 'harmonizing' everything. However, the Euro and the EU do exist and they have to be managed as best as can be done. Greece is incompatible with either institution and, if it does not withdraw voluntarily from both the EZ and the EU, it must be expelled.  Greece is going to have revolving door governments for as far as the eye can see simply because the mess it is in is intractable. It is also the case that the EU cannot be ALL Greece ALL the time as it lurches from crisis to crisis and sends an increasingly bizarre cast of characters to EU summits and meetings. Europe needs to turn its back on Greece and deal with its own internal problems....The structural weakness of the EU has been exposed. An even "closer union" will not fix the Problem and a Stalin like strong man will be required to keep the corrupt mess from falling apart. A bloc is a bloc is a bloc.

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