Friday 19 October 2012

The EU Has No Future

It is becoming more and more difficult to have any sympathy at all for Germany. They saw to it that the euro worked almost exclusively in their favour and to the detriment of almost everyone else by ensuring the interest rate applied in the eurozone was suitable for themselves and pretty much no one else. This enabled them to sell their goods to the eurozone periphery at deflated prices in euros rather than at the price they would have had to sell them at in Deutschmark. The Germans guessed the eurozone periphery countries would greedily ignore the reasons behind these windfall prices and borrow at German low interest rates to buy discounted German goods. These fake prices are the reason why there are so many German cars, white goods and even televisions here in the UK. They may cost less than they should but are they that good? In my experience they are not the ne plus ultra they are sold as being. Now the cat is out of the bag about their grand plan to dominate the european industrial market  you would think the Germans would offer to pick up their share of the cost but no such offer has been forthcoming. They have obligingly said though that they will agree to some sort of banking union with all the banks coming under the scrutiny of the ECB but only so long as the ECB does not get to supervise the smaller regional banks for whom responsibility will rest with their respective central banks. The reason for this is because Germany is paranoiac about the solvency detail of their smaller regional banks becoming known to the world. Their regional banks could well be insolvent in light of the sub-prime and Greek debt they bought before the crisis. If the state of Germany's smaller regional banks were to come to light Germany would be forced in to having to mount a huge rescue operation or see many of such banks go to the wall. So instead of being european minded ( a state of mind that has only ever lived in the arses of european hypocrites) Germany is behaving like every other nation and putting its own interest first. The EU myth was always a farce but has now become seriously bad for our health in its anti-democratic prejudice, rigidity, lack of competition, internal wrangling, corruption and excessive cost. The EU pretends to be something it is not, never has been and cannot be. As always I'm amazed by our decency and forbearance in politely not pointing this out. It has been wonderful for a lot of third rate bureaucrats and other nonentities like Barroso and van Rompuy who could never have made it in their own countries - alright Barroso and van Rompuy were Prime Ministers of their respective countries for a few months but this does not destroy my point, it strengthens it.  All the EU is is a group of countries in a certain part of the world that have a history of trading and fighting between them. Rather than just getting out we should be working to bring the whole diseased structure down before it starts a war.      

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