Sorry. Yet another post on the insanity in Europe. It just just gets weirder and more destructive by the day.
The Euro-fanatics, in a bid to save their sacred coin, are going to provoke a global economic catastrophe. I have written before several times about the fallacious thinking behind the EU and the Euro, and its dire consequences for Europe and the world. To sum up, this EU/Euro project was motivated by envy of and animus for the United States. The EU is formed largely by a bunch of bureaucrats from nations that are has-beens, never-weres, and never-will-bes. The EU reps I have encountered in my career were the most insufferable and boorish dolts imaginable--but very well paid. They could barely contain their hatred for the United States, and liked to brag endlessly about how "Europe" was going to be the next super-power. They attributed all sorts of magical properties and events to "Europe," e.g., winning the Cold War, keeping the peace, designing an economic system that was the envy of the world, etc. The Euro currency would be the crowning achievement: a mighty amulet that would ward off the evil Americans and their almost as evil and deluded stooges, the British (Note: EU bureaucrats, as a rule, do not like the British, consider them only partially European, resent their rejection of the Euro, and, above all, detest the special military and intelligence relationship between the UK and the US.)
Well, we have seen how it turned out. The Euro, in the end, became nothing more than the German Mark, sustained by the impressive German economy and the sort of bookkeeping that got Al Capone thrown into prison. The Euro fed the delusions of the poorer economies of Europe that they could spend like Germans without having to work and save like Germans. It was funny money. Wasn't real. There was always more of the stuff around. Despite the "strict" rules on deficits, nobody bothered to enforce them, and, as we now see, there is no way to enforce them even if somebody wanted to do so. Economic meltdown in Europe.
We are now moving into the next phase of insanity. Instead of actively beginning the admittedly difficult process of killing off the Euro, the Kool-Aid drinkers in the Old Continent are trying to find a way, any way, to "save" the Euro, almost regardless of the havoc that incurs. The latest manifestation comes from Spanish PM Rajoy who is proposing some sort of a centralized European authority that would control the budgets of the member states. This follows on the French proposal for one European bond issuing authority. That's desperation. This authority would, in essence, have a veto power over spending and tax policies.
One wonders then, what would national politicians do? Why elect them much less pay them a salary? On the one hand, if the Germans were placed in charge of this authority, it might not be a bad idea. But that is not how it would happen in Euroland. I can tell you right now, the Europeans would come up with some weird weighted voting scheme that would give power over the authority to the spendthrifts and demand that the Germans pay for it. In other words, the German treasury would become the common property of all of Europe. It is not not unlike loaning out your credit card, and having no real say over how it can be used but being responsible for the debts incurred.
Will the Germans buy off on that? Will the German politicians, not an impressive bunch, finally work up the courage to say, "Enough!" The best thing Germany could do for Europe and itself is for Germany to get out of the Euro.