THE Daily Express this week became the first national newspaper to call for Britain to leave the European Union. Also this week British Member of the European Parliament Nigel Farage castigated the EU plutocrats for trying to destroy democracy in Europe and driving the member states one by one into bankruptcy. The end is near?
In this video MEP Nigil Farage tells the other Euro Parliament members, “You are very very dangerous people, indeed. Your obsession with creating this Euro state means that you’re happy to destroy democracy. You appear to be happy for millions and millions of people to be unemployed and to be poor. Untold millions must suffer so that your Euro dream can continue.”
Here is the problem with the Eurozone is a nutshell: There are 16 nations in the EU. The European Central Bank, centered in Germany, has the sole authority to set monetary policy for the Eurozone. It has followed a course of conservative monetary policy. But each of the sixteen nations is free to set its own fiscal policy and most of them have refused to follow a similarly conservative fiscal policy. Two of them, Greece and Ireland, are bankrupt as a result. So? The Big Mama bank is going to bail them out. However, there are two more prodigal children who have overspent their allowance, Spain and Portugal. It’s a near certainty that they will go the way of Greece and Ireland, and soon. Then there’s Italy. If it falls off the wall it will be Humpty Dumpty time.
The bailouts will end before the Eurozone fiasco gets to Italy. Hard working and industrious Germans don’t want to be taxed to pay for the sins of their profligate and irresponsible neighbors. Keep in mind, the countries of the Eurozone don’t share the same sorts of common bond that the states making up the United States do. Even in the states, that bond is going to be put to the test in the near future when the Obama government floats a Federal bailout for California and New York. When he proposes taxing the people of Wyoming and Mississippi and New Hampshire to bailout out Illinois, Americans will better understand how the Germans feel and why Angela Merkel is likely to oppose more bailouts. It would be like jumping out of an airplane when all the parachutes have already been thrown out.
Will the first decade of the 21st century be remembered as the bailout generation? Did you get your bailout?