24 April 2012
Michael Hudson and Max Keiser - Beggars Without Borders - Is the EU the New AIG?
The more I examine the financial, political, and economic structure of the European Union, the less sustainable and sensible it appears.
Having a common currency without allowing for transfer payments to make up for the lack of a flexible currency exchange is almost incredible considering the diversity of the region.
And when one adds the fact that each country is expected to issue its own bonds, in euros, with its own interest rates, and it becomes more like some doomed mutant, a kluge created by a committee, than a viable entity with a well thought out, robust structure.
Is the EU the new AIG? What were they thinking? The financiers are going to devour the best parts and then pick its bones.
Europe as it is currently constituted cannot last. It may go on for some years as an artificial construct, but it has a relatively short half life. It requires major surgery.
Posted by Jesse at 4:12 PM