Monday, August 29, 2011

The long-predicted fall of the Euro?

The idea of pooling European debt is like your neighbours asking you to pool their debt with yours. Think about that for a minute. They have more debt than they could ever possibly pay and you are just about getting by, maybe. As part of their proposal they want to retain complete autonomy to spend as they see fit, accruing more and more debt and pooling it with you. That's what the Euro zone is facing.

It's preposterous to expect Germans to take responsibility for other countries' debts, no? Surely the Euro will collapse, either in the sense of shrinking the number of countries using it or a complete rout and dissolution. Northern Euro and Southern Euro?: no way, the peripheral states won't want the worst of both worlds. It's just one of those things where we have to admit the naysayers were right in the beginning. That used to include Labour before the entryist Blairite faction took over.

To be fair to Gordon Brown, though otherwise a hopeless manager by his own pragmatist lights, he did a few good things, not least keeping Britain out of the Euro. You can't let others govern you through toy, pseudo-democratic institutions. There's too much like that at home already. Even the dogs in the street know it.


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