Google


Kiss the European Union Goodbye

October 24, 2011 | Filed Under Alan Caruba, Budget, Business, Capitalism, EU, Europe, Foreign Countries, Jobs, Taxes | Comments Off

-By Alan Caruba

In Paris on October 15th, a group of finance ministers and central bankers known as the G20, representing major nations, gave the European Union until October 23red to find an answer to the financial crisises that are tearing apart the EU and its monetary structure.

Don’t hold your breath. If not now, at least in the foreseeable future, the EU will collapse for the oldest reason, national sovereignty and national self-interest.

If you visit Wikipedia and enter “European Wars,” it will kick out a list that’s several pages long in small print starting with the Trojan Wars, 1193-1184 BC. The Romans conquered everyone for a while. The Spanish tried to invade England. For a while Napoleon was invading everyone. There were the hundred year wars, thirty year wars, and wars for the hell of it. Suffice to say the Europeans have a long record of going to war with one another.

World War One impoverished its participants and led to World War Two. After the devastation of World War Two and with the threat of the Soviet Union to the East, European leaders concluded that the only option to avoid future wars or being overrun by the Russian bear was to form a kind of United States of Europe.

In a newly published book, “The End of the Euro”, subtitled “The uneasy future of the European Union”, Dr. Johan Van Overtveldt, the editor-in-chief of Trends, Belgium’s leading weekly on business and economics, takes us through the history of the European Union and the creation of a common currency, the euro.

For people like me who thank a merciful God that Internet banking makes it possible to actually know my checking account balance, Overtveldt’s book is both a blessing and a challenge because it deals with some very complex issues of finance. He also provides some very useful history with which to understand the past and predict the future.

My knowledge of history was sufficient to have huge doubts about the formation of the European Union and it looks like I am about to be borne out in my pessimism. “While efforts at European integration have without question contributed to peace on the continent,” Overtveldt points out, “at least three other factors are also at play.”

“First, broader international cooperation and consultation” have been the order of the day since the end of World War Two. “Second, the presence of American troops throughout Europe, and certainly in Germany, helped maintain the military status quo. Third, the sense during the Cold War of “a common, non-democratic enemy increased cooperation and cohesion among Western European nations.”

Then Overtveldt identifies the central weakness of the European Union. “History teaches us that, in particular, the lack of real political union is a major barrier to the durability of a monetary union and its single currency.”

The problem of the EU and the euro “is the loss of an independent monetary policy” because what works for Germany does not necessarily work for France, Spain, Italy, and the other EU members.

This has become abundantly evident as Greece totters on default of its debts and the contagion of a sovereign debt crisis threatens to spread. Simply said, the Germans are not inclined to want to “bail out” the Greeks because the Germans have a wide conservative streak when it comes to the conduct of their financial affairs while the Greeks were inclined to fudge the books and run up a huge debt.

In addition to Greece, Portugal and Ireland are likely to find that they have no choice except to leave the EU and Spain, Italy, and Belgium have their problems, too. For that matter, add France to the list.

The U.S. financial crisis no doubt sped up the process, but our government bailed out the banks for the simple reason there never was a choice not to. One or two big investment banks were allowed to fail, others were forcibly merged, but a nation without a functioning banking system is nothing but lines on a map.

In a recent column by Patrick J. Buchanan, titled “Is the New World Order unraveling?” he notes the rise of “economic nationalism” in Europe as well as warning against the foolish American trend of signing away our sovereign rights by joining globalist organizations from the United Nations to the World Trade Organization, along with a slew of treaties and agreements.

The export of whole U.S. industries has been one result “while emerging powers like China, India, and Brazil are demanding to be exempt from restrictions developed countries seek to impose.” The world is a nasty place in which to live. The Moon and other planets, however, are less habitable and do not have cable TV.

As Americans vainly look to their Congress to redress its own authorization of the spending excesses of present and past administrations, the rest of the world, protected by our military strength and moral values, has decided it no longer has to pay us the attention it did in former times.

So we shall surely witness the end of the euro and the European Union as that continent returns to its normal levels of national self-interest that one might argue are not a bad thing in a competitive world. So long, of course, as those nations do not decide to declare war on one another.
____________
Alan Caruba writes a daily post at http://factsnotfantasy.blogspot.com. An author, business and science writer, he is the founder of The National Anxiety Center.

© Alan Caruba, 2011


Leave a Comment

If you would like to make a comment, please register to do so. I hate to do that but there are so many spam-bots out there that deleting spam comments would be a full time job if I were to just open it up for anyone without asking them to jump through a few hoops first.

You must be registered and logged in to post a comment. Anyone can register. No registrant's information is kept, used, or sold. CLICK HERE TO REGISTER

Social Networking


Help the Soldiers!



American Genius

Our Founding Ideas

"Governments are instituted among men,deriving their just powers from the consent of the governed." Declaration of Independence July 4, 1776





Enter your Email


Preview
Powered by FeedBlitz

Subscribe in a reader




Recently Written

  • Ferguson: We’ve Seen Enough to Know That Mike Brown Was a Thug, Cop Innocent
  • Note the Difference Between Bundy Ranch Protest and Ferguson Riots
  • Despite What Quinn Claims, Illinois Leads In Job Loss
  • HuffPo ‘Reporter’ Stirs Race Hate in Ferguson
  • CNN Quietly Changes Story that DOJ Held Back Ferguson Robbery Video
  • We Should Not Call Them The ‘Ruling Class,’ But the ‘Immunes’
  • Black ‘Professor’ Who Attacked Teen Anti-Abortion Protester Blames ‘Slavery’
  • Leftist Columnist Glenn Greenwald Somehow Blames Israel for Ferguson Riots
  • VIDEO: Obama Was Back On Golf Course Only Seven Mins After Ferguson Address
  • Book Publishers Refused Bowe Bergdhal Book Because It Would Hurt Obama


  • What THEY Say:
    Foreign News In English




    Click HERE for information
    on my fedora collection.
    Antique Stetsons, hat history...



























    Contact Us

    Email Publius' Forum

    Archives

  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008
  • March 2008
  • February 2008
  • January 2008
  • December 2007
  • November 2007
  • October 2007
  • September 2007
  • August 2007
  • July 2007
  • June 2007
  • May 2007
  • April 2007
  • March 2007
  • February 2007
  • January 2007
  • December 2006
  • January 2006
  • December 2005
  • November 2005
  • October 2005
  • September 2005
  • August 2005
  • July 2005
  • June 2005
  • May 2005
  • April 2005
  • March 2005
  • February 2005
  • January 2005



  • Add to Technorati Favorites


    Clicky Web Analytics