Good analysis of the European debt problem.

[hutch--]

The euro has not brought Europe closer – it has ripped it apart

http://www.independent.co.uk/news/world/europe/the-euro-has-not-brought-europe-closer-ndash-it-has-ripped-it-apart-2299280.html

I have had my doubts about the EU for a long time, Europe used to be a great place with unique and different cultural heritages and a diverse and dynamic economy but the wheels started to fall off with the advent of the EU. It managed to float on an endless bubble of credit for a long time but the 2007 bubble burst and ugly reality set in.

One would hope that the Burgers of Brussells (EU, NATO etc ...) would get off their arse and actually elect a government in Belgium rather than inflicting their creeping disease over what used to be a vibrant continent. The EU is to Europe what GPL is to computing, a sickness that needs to be amputated in the interests of survival. Instead of this creeping mediocrity a return to the diversity and individual strengths of different parts of Europe would make the world economy stronger and more flexible, not crippled and heading for collapse as it is at the moment.

[DarkWolf]

I like to know why people thought a single unified economic bloc was the way to go.

There are what like two maybe three stable economies out of 30 or so countries ?
Who did they think would support the underperformers ?

It's like Metropolis, the bloc was formed to create the Have's and the Havenot's

Don't worry in 30 years we'll get to see Hell over here first hand when the Amero comes out and the Amercian Union is formed. (Why are these blocs called "unions"?)

[jj2007]

I like to know why people thought a single unified economic bloc was the way to go.

Indeed, what a funny idea. Now imagine how prosperous the U.S. could be if the 50 states all introduced their own currency, instead of having one unified "dollar" ::)

[dedndave]

lol - i ain't takin' no Kentucky pesos   :P

[hutch--]

The economy of California is big enough to do this wih no problems, it and a few other states mirror the situation in Europe where a few economies fund the other basket cases.

[dedndave]

yah - i just came from Michigan
you can find some of the worlds best machinists trying to earn a living by trimming trees

[hutch--]

Dave,

Now think of the situation where Michigan set its own currency values on a market basis and Detroit could compete against other economies that have artificially low labour costs. We have a similar problem, with the massive exports of raw materials to China, India and a few others it has inflated the OZ dollar and further damaged our manufacturing sector. The exchange rates between different countries is part of the problem that is stuffing the world economies. The great humour is its even bigger than multi-national corporations, its sovereign wealth funds with such massive financial power that they can continue to exploit the exchange rate to the destruction of other economies.

[dedndave]

that's right
thing is - Michigan used to be very prosperous with the auto industry
now, it's hard to find work there - well - it's hard to find work everywhere, but especially there
that's a big reversal that would make a mess out of things

the problem we have with the current system is that the government controls way too many strings
they are supposed to protect the citizens - not screw us in the ass

[baltoro]

As usual, I have a fabulous solution to an incredibly complex global problem: establish a single world-wide currency which is indexed to the ticket price of a mega-arena Britney Spears Show. That way, you'd be absolutely certain that International Trade would always be a disaster (and, coincidentally, promoting military adventures everywhere),...you wouldn't have indulge in electronic robo-investment strategies that will inevitably result in the doom of global securities markets, anyway,...
:eek ...I'm probably wrong about that, though,.. :eek

[dedndave]

i have a solution for the middle-east problem that is even better than baltoro's "Brittney Spears Maneuver"

control all the food that Isreal and Arab contries are allowed to import
the Arab allotment will be based on the size of the (living) populous in Isreal
the Isreali allotment will be based on the size of the (again, living) populous in Arab states, including Palestine

the more "enemies" you kill, the hungrier you get   :P