richard_d_lee Offline

The "Euro Bond" idea got quashed today...

The "Euro Bond" idea got quashed today... which is a good thing.

The "new treaty" idea is being floated but that takes years. Part of the treaty would allow "richer" nations to dictate monetary/fiscal policy to "poor" Euro zone nations. But Germany already gets to set rules for lending Euro's to Greece and Italy, etc. through forced Austerity measures.

As I've been saying publicly the solution is for the ECB to print Euros and buy sovereign debt that people, pensions and banks refuse to buy or will only buy at loan-shark interest rates.

No one in Germany who remembers the Wiemar Republic likes the idea of printing money. I don't like the idea either. But you have to live in "REALITY" and the reality is the US Federal Reserve has done this to support the US Federal Treasury. So they have tipped the balance and others must play on the same playing field. "When in Rome...".

Now concrete measures can be taken to solve European trade imbalances. Upper middle class Germans can buy whole brand new empty subdivisions in Spain as winter holiday get aways. Greeks can market their goods more effectively to France and England.

Then new ideas can be floated: Can a water pipeline can be built from rainy coastal France to drought stricken regions? Can electric grids be built from LNG receiving Greece with new power plants to Nuclear fear grid-locked Germany?

chop chop people let's get moving. The markets want action not spiraling unemployment and more useless talk.