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Europe can’t accept that the economics of the single currency condemn it to failure

Det skriver Jeremy Warner i Daily Telegraph 12 April 2012

By promising virtually unlimited liquidity, the ECB may have prevented a Lehman-style meltdown of the banking system. Yet it also accentuated the underlying problem.

/Spanish and Italian banks are trapped with large losses on sovereign bonds bought with ECB funds (LTRO). Ambrose/

Repeated rounds of self-defeating austerity have become the order of the day. Still others see the crisis as one of confidence, which can be addressed by setting up a rescue fund large enough to convince markets that they cannot undo the euro – a “big bazooka”. This, too, is just wishful thinking.

The real cause, as long argued by Sir Mervyn King, Governor of the Bank of England, and now accepted by most leading economists, is a simple, old-fashioned balance of payments crisis.

/It is widely accepted that the balance of payments is fundamental to any understanding of the present crisis. Martin Wolf/

The inadequate, piecemeal nature of Europe’s approach to the crisis stems from a wanton refusal to face up to its causes.

Europe can’t bring itself to accept that the economics of the single currency doom it to failure.

Full text of Jeremy Warner

Felet är att eurozonens ledare inte vill inse att allt var fel från början.

De vill inte inse att  tanken, att ha en gemensam valuta för Tyskland och Grekland, Finland och Cypern, var och är en felaktig tanke.

Allt var fel från början, precis som kommunismen. Englund blog 21 oktober 2011


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