Nigel Farage warns of euro meltdown

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cancel2 2022

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Nigel Farage of the UK Independence Party is not well known in the US, if at all, which is a shame as he has told the truth about the Euro project from the start. This is him in 2009 railing against the lunacy, on the 10th anniversary of the launch of the Euro in the European Parliament. There should be more like him, unfortunately Brussels is full of failed lickspittle politicians who are more concerned with creating a United States of Europe.

 
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If you think that this is a uniquely European problem then I'm afraid that you will quickly learn otherwise. This has the potential to be worse than the sub prime crisis of 2008.
 
Yurt said:
what is the main root of the problems?
Click to expand...

The Euro has always been a political project first and foremost, it was originally intended that the Benelux countries, Germany and France would be in the Euro only. However the southern European countries lobbied hard to be included, indeed Goldman Sachs worked with Greece to cook the books to get them in. It's funny how they almost always seem to be at the bottom of most scandals.

There were a few that said that the whole project was doomed from the start because the Mediterranean countries just do not have the fiscal discipline and prudence to adhere to the financial constraints required to make it work. Ironically it was Germany that showed them the way by breaking the terms and conditions of the Stability and Growth Pact which they had been instrumental in insisting on in the first place. The PIIGS countries were screwed when the European Central set interest rates to suit Germany and France when they desperately needed interest rates to be lowered. The one size fits all policies of the ECB were a big reason for thecurrent problems. Monetary union only works in the US because you have a federal government, one official language, unified fiscal policy and relatively free movement of labour.

http://en.wikipedia.org/wiki/Stability_and_Growth_Pact
 
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