Friday, November 19, 2010

Still unsatisfied

Irish Grasp at EU, IMF Lifeline

Dublin Admits It Needs a Rescue; Moment of Truth for 16-Nation Euro ZoneIt is an equally pivotal point for the 16 nations that use Europe's common currency. After rescuing Greece in the spring, European leaders are now betting that if they extinguish the financial crisis engulfing Ireland, it won't spread to other euro-zone weak spots. But with bond markets continuing to punish those countries, new bailouts may be needed soon—a prospect that some believe will call into question the durability of the euro as a common currency. -Full text
Comment: The euro is hre to stay whether one likes it or not. The cost of its abandonment outsizes its maintenance by a huge margin. The loss of the euro would amount to global instability at a scale of the 1920s and 1930s. The problem is not the euro. The problem is an unsound monetary system which by itself creates a fraudulent banking system. Even without the euro these problems would continue to exist. Even worse: the existence of the euro may actually help to reform the monetary system and establish more sanity into the world of finance which has gone bezerk over the past couple of years driven by irresponsible central bankers who played superstars and intellectually sanctioned by economists who know ever less about the economy.

No comments:

Post a Comment