A divorce settlement for the Eurozone
By Arnab Das and Nouriel Roubini
2 April 2012 The European Central Bank has averted disaster, sparking a powerful relief rally – but nothing fundamental has been resolved. Greece may need another debt restructuring; Portugal and Ireland may need restructuring too. Spain and Italy may yet come under the gun. Banking crises are hardly ever resolved without removing toxic assets or recapitalisation. The eurozone still lacks essential features of monetary unions that have stood the test of time; and planned reforms may exacerbate latent fiscal, banking and external imbalances, leaving it less, rather than more, resilient to regional shocks. Splitting up may be hard to do, but it can be better than sticking to a bad marriage. The periphery debt crisis threatens to engulf the core in huge bank capital shortfalls and fiscal liabilities, trapping both in protracted stagnation. This reflects possibly intractable eurozone design flaws. So we propose the following amicable divorce settlement. Countries leaving the eurozone must rebalance away from growth led by debt, towards export- and income-led growth. Members of a “rump” eurozone should rebalance toward domestic demand. The EU free trade arrangement is critical to this end. Ideally, five distressed peripherals – Portugal, Ireland, Italy, Greece, and Spain – would exit, negotiating bridge financing. […] We have divorce laws because amicable divorce is better for all concerned than enduring the chronic depressions that accompany bad marriages. The eurozone should devise plans for orderly exit sooner rather than later, because delaying often makes break-up more costly.
A Divorce Settlement for the Eurozone
They should be led to prison, both "Markets” that pretend to be reservoir-Fund and their local “pumps” that pretend to be private banks …banks should be left to bankrupt so that they come under the national control for free. It is banks that should become public not their debts, as it happens today. Their owners should be led to prison for high treason and all their assets should be seized. All the bonuses, that their staff received due to their loan sharking “successes“ should be given back. Justice should be restored to face this blood-thirsty gang of beasts who made people sweat blood …international Courts should nail the “Markets” and put them on trial for crimes against humanity.
…They should be charged with the suicides all over the world of hundreds of thousands victims of the banking illegal acts …they should be charged with millions of people hospitalized due to their loan sharking greed …they should be charged with the poverty of billions of newly-poor unemployed people of the West, who cannot survive today for the simple reason that the destroyed the production procedure …they should be charged with war losses, because they made war against the unsuspected human kind. All these should be the charges to the lame loan sharks who have decided on their own to impose the global dictatorship of global governing.
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Global Debt Crisis
http://eamb-ydrohoos.blogspot.com/2012/01/global-debt-crisis.html
Authored by PANAGIOTIS TRAIANOU