The Euro endgame has begun
02 October, 2012
Failure of the Euro is no longer a question of 'if' but 'when'. The new ECB president Mario Draghi seems determent in continuing the self destructing policies in pursuit of their European dream. are all other major players of European aristocracy (Barosso, Merkel, Schultz, Hollande, Van Rompuy etc)
An important decision by Germany's constitutional court might have placed some restrictions on the European Stability Fund, but that will not derail the overall effort. For the first time chairman Barosso of the unelected European Commission stated their goal: a European Federation led by an unelected elite of politicians.
Nothing can stop the European elite, no debt too high for a bailout and no protest to great to suppress. Greece will receive another bailout tranche in spite of not meeting the requirements, for otherwise the Euro could fail. The ECB is determined to buy-up debt from Spain and other member-states.
Eurocrats are going to see it all through, which will inevitably result in high inflation or even hyper-inflation. There is no future for the Euro zone, but fortunately not all EU member choose the same path.
Bulgaria announced that it will no longer adopt the Euro. The rejection of Bulgaria to adopt the euro currency coincided with similar actions by other emergent eastern European economies, notably Lithuania, Poland and Croatia.
Sweden is another notable exception. Known for its socialist politics, Sweden's alliance of moderate parties has been reducing the size of government and government debt in recent years. Overall taxation was reduced from 48.3% of GDP in 2006 to 44.4% in 2011, well below EU average. For 2013, the government plans to cut the corporate tax rate from 26.3% currently to 22%. This is quite an achievement considering most EU countries cannot cut a penny from their budgets and increase tax rates.
Unlike other EU members, when the Swedes voted against adopting the Euro in 2006, the government actually honoured the referendum and no attempts were made to join the Euro through the back door.
When inflation starts taking a real toll on economic life in the Eurozone, countries such as Sweden, Poland, Switzerland, Bulgaria etc. will offer an escape hatch for entrepreneurs.
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