An ill-designed euro,
together with EU policies that promote the products and services of powerful member
countries against true economic sense, have exacerbated trade imbalances
amongst eurozone countries. This has been causing economic calamity in the ones
with trade deficits. They can no longer restore competitiveness having lost the
tool of monetary policies or a national currency exchange mechanism. Germany
and other member countries that have benefited insist that competitiveness in ill-affected
member states can be restored by national fiscal measures. The truth of the
matter: It cannot. Having blackmailed troubled member states with overnight bankruptcies
and chaos unless the Troika austerity terms were accepted, Dr. Schauble has
repeatedly warned that he or his government cannot be blackmailed. The
solution: The EU should design a smooth euro-exit program, where Greece and
other troubled member states could optionally participate, in order to exit from
the eurozone. But this is very unlikely to happen: It would be against Germany’s
interests that benefits from a low euro exactly because of the troubles of some
of the Eurozone countries. Instead, the German government blackmails every troubled
country’s government with economic chaos, unless they yield to their usurer’s demands. Dr. Joseph Goebbels would be very proud of you, Dr. Schauble.
Others, more knowledgeable
than you or me gave us warning: http://economides-bookreviews.blogspot.com/2011/05/joseph-e-stiglitz-freefall-2010.html.
You would not listen:
In the
Afterword of the 2010 paperback edition Stiglitz warns that “The notion that
cutting wages is a solution to the problems of Greece, Spain and others within
the Eurozone is a fantasy…There is a far easier solution: the exit of Germany
from the Eurozone or the division of the Eurozone in two subregions…The imposed
austerity will itself not only cause hardship in the afflicted countries but
also weaken the European economy and undermine support for European
integration. And brinkmanship carries with it a risk: in waiting too long or
demanding too onerous conditions, the Eurozone may face a crisis far worse than
that which it has experienced so far”.
