‘Euro is nonsense, Greek bailout illegal’

[videoDrone]

‘Euro is nonsense, Greek bailout illegal’

A currency expert protesting against Greece’s bailout says the bailout mechanism violates the provisions of the Treaty on European Union, and it may be a better option to stop the euro experiment instead. The European ministers recently agreed on a 110-billion euro rescue package for Greece, hoping this would prevent a default and stop the currency’s crisis from spreading through the rest of the bloc, and Germany has been opposed to the idea from the very beginning. Dr. Wilhelm Hankel is one of the currency experts who filed a lawsuit in the German constitutional court against Greece’s bailout. “The whole idea is illegal, because we have the treaty for the European community, and bailout is completely forbidden for a very simple reason: a country which can count on being bailed out will not follow the financial and monetary discipline, so no bailout is a precondition for a stable euro,” Hankel said.

[ame=http://www.youtube.com/watch?v=I4mEloQ1Hdo]YouTube - 'Euro is nonsense, Greek bailout illegal'[/ame]

 

[slx]

Well, the counter argument to that is that the ECB has to protect the Euro. The alternatives are pretty drastic as they would either involve a major devaluation of the Euro as a whole in order to quantatively ease the debt issues in the countries implicated, or expulsion from the Eurozone which would be disasterous for the countries involved as they would ultimately need some kind of bail out after that to prevent a major social crisis.

The issue that's coming up all the time is that the Eurozone wasn't really regulated properly. All they concerned about was deregulating the banking sector and throwing open the valves that controlled flow of money between countries.

There was a bit of an overly optimistic view of it.

 

[WTTR]

When things were judged with a level head, rationally; the notion that practicality on the ground as distinct from the rarefied atmosphere at Brussels level was not at all understood by our politicians was self evident. Our politicians let the whole Euro idea take off on its own with complete disdain for the peoples input. Is it any wonder, the whole Edifice is tumbling down?

Hi! The convention to establish a Constitution for Europe was set up following a declaration made in Laeken in 2001. The background to when the Constitution was first formulated has change utterly. The EU and the Capitalist World are now in financial turmoil. The neoliberal free-market ideology model imposed on a rapidly aging EU society is not working. The Lisbon Treaty (TLT) is a near clone of the Constitution for Europe and does not address the problems confronting us as we approach the second decade of the 21st Century. It’s a treaty for another time, now gone! Proper Vehicle

 

[Asparagus]

Well, the counter argument to that is that the ECB has to protect the Euro. The alternatives are pretty drastic as they would either involve a major devaluation of the Euro as a whole in order to quantatively ease the debt issues in the countries implicated, or expulsion from the Eurozone which would be disasterous for the countries involved as they would ultimately need some kind of bail out after that to prevent a major social crisis.

The issue that's coming up all the time is that the Eurozone wasn't really regulated properly. All they concerned about was deregulating the banking sector and throwing open the valves that controlled flow of money between countries.

There was a bit of an overly optimistic view of it.

Politicians world wide need to learn that you cannot control economics with any immediacy, you can steer it by using techniques months or years in advance of when you want to see results.
When you try to swerve an economy you end up accelerating it directly over the edge of a cliff.

The Euro is a political construct there was no social or economic need for it.
It doesn't make any sense having a single currency spanning many economies - i don't see where it has ever been successful.

If you integrate economies then a single currency makes sense but now we are faced with either having to integrate our economies, dump the single currency notion or continue with the political frankenstein-ing of the euro.
Politicians will continue with their arrogant attempts to hoodwink us into a federal europe by thinking we are bound by the fate of the euro.
We are not unless we choose to be.

Feck the euro - we have more in economic common with sterling or the dollar

 

[Cassandra Syndrome]

Where are the all the Eurotron fanatics today?

 

[Asparagus]

Where are the all the Eurotron fanatics today?

maybe they are realising that Iceland borrows money cheaper than ireland despite

• not being in the euro
• allowing their private banks to fail
• not guaranteeing and immunising bond holders from any risk
• having a much smaller economy

 

[DCon]

maybe they are realising that Iceland borrows money cheaper than ireland despite

• not being in the euro
• allowing their private banks to fail
• not guaranteeing and immunising bond holders from any risk
• having a much smaller economy

But are a group of Icelandic developers with ties to the government sitting pretty in Spanish/Portuguese Villas?

that is the true measure of success.

 

[johntrenchard]

VERY interesting that it's a German filing a lawsuit on this. The Germans have an enormous aversion to printing money ad-hoc due to their Weimar experience.

And the euro WAS sold to them as a replacement for the rock solid Deutschmark.
( Why do you think that the ECB is in Frankfurt and not Paris? )


Seems to me that the Germans are getting angrier and angrier...

My guess? And this is a long shot - it wont be Greece or us that will leave the euro first - it'll be the Germans. The pressure for the return of the Deutschmark will simply become too great politically.

 

[kerdasi amaq]

But are a group of Icelandic developers with ties to the government sitting pretty in Spanish/Portuguese Villas?

that is the true measure of success.

No, they're enjoying themselves on a much more exclusive slice of Mediterrean beachfront property.