Finally! It was a struggle, but the EuroCrats are finally taking my advice. Maybe now they will offer me a job. Or not.
If you can believe Wolfgang Schäuble, and it is in my best interest to do so, the EuroCrats will focus on ways to Promote Economic Growth. This is something heretofore not addressed. This is what I have been pressing to no avail--up till now.
The absence of ways to promote economic growth has been the cornerstone of the EuroCrats' failure to improve the EuroZone economy or at least stem the decline. Things may now change. However, (for those who've read the monograph on my blog) there is still the EuroGlitch. Now, however, I can report that that glitch is not merely a misalliance between France and Germany. It is a sword that hangs over everyone's head.
From the Manchester Guardian:
Schäuble said a final package would not be in place until the G20 world leaders' summit in Cannes next month. His comments dismayed investors concerned that Berlin and Paris have failed to grasp the magnitude of the eurozone's debt crisis. [ Hold that thought. ]
From the Manchester Guardian:
However, his strong insistence on bank recapitalisation and a restructuring of Greek debt suggests this will not be a painless or a quick outcome. More importantly, he is defending the German approach to the debt crisis and is very robust when talking about the failings of financial markets and the need for fresh regulation.
I will leave both quotes where they are. You can remember them and apply them at the appropriate time.
On The Merkel Plan, Steffen Seibert, spokesman for Angela Merkel, reported "Those are working steps". Translation: We created a plan that will take a long time hoping the crisis resolves itself somewhere along the way. In short, they are back to "hope as a plan".
The real problem, which I alluded to only briefly, and even then inadvertently, is Chancellor Merkel.
Chancellor Merkel has been playing Dionysus, dangling swords over everyone's heads. Perhaps the Chancellor should be the banquet guest instead:
Angela Merkel's strict demands for Greek Austerity, (Without the brand new concession to Economic Development) imposed great hardships on Greece. This inspired my monograph, The EuroCrats' Trojan Plan: Destroy Greece.
You cannot, fire people, cut salaries, raise property taxes, and call it a solution to the problem of Greek Debt.
Angela Merkel's step to bolster the EuroFund with no scraps for France, inspired the monograph, The EuroGlitch. It arose from the comment, "Why should German taxpayers bailout a French Bank that is going to compete with a German Bank".
To France: You may bring the food, but you may not eat any of the food because I am rich.
Additional demands mandated that I point out that:
"Investors invest money to make profits not to mitigate losses."
This arose from the Demands that Private Investors bear a greater burden in the Greek Debt Bailout (Up to 50%).
This suggests that the EuroCrats said to the EuroBanks, "We will give you more money so you can make more bad loans." I must wonder, is this before or after the 50% losses they must endure?
To the Private Investors: Just Send Money--not ideas.
Moody's just warned of a downgrade for French Banks.
EuroBanks have divested themselves of Greek Debt. Not so, France.
France faces a downgrade.
France is left holding the bag.
However, all is not lost.
You have read my comments on the EuroCrisis, The EuroMess, The EuroGlitch, Project Greece, et. al. (Perhaps you even read my monograph Point Taken.)
You may remember my derision of such remarks by Tim Geithner as:
"When France and Germany agree on a plan, big things are possible." (Well, that's just silly.)
Now, however, there is a light at the end of the tunnel.
The Old Plan
Recapitalise the Banks
Bolster the Bailout Fund
Bailout for Greece.
The New Plan
Recapitalise the Banks
Bolster the Bailout Fund
Bailout Greece
Develop ways to promote economic growth
Strengthen the management of the EuroZone.
Repeat
Develop Ways to Promote Economic Growth
Strengthen the Management of the EuroZone
Why didn't they simply listen to me in the first place? Alas, no.
"Don't bother listening to me. Everyone always doesn't listen to me."
http://slimviews.blogspot.com/ Commentary on Global Political and Economic Events by Slim Fairview. Read my stuff today or hear it from experts in a month or two. Slim
Bon Chance.
Sincerely,
Slim
slimfairview@yahoo.com
Copyright (c) 2011 Slim Fairview
