The economic situation in Europe in a nutshell

The alternatives on offer are internal and external devaluation.

Choose one of the two for there are no other alternatives.

7 thoughts on “The economic situation in Europe in a nutshell”

  1. Clear, concise, hype-free and reads wonderfully. Even I understand what the man is saying. Is there any way we can make it obligatory reading for our ‘leaders’? Both for its content and as an example of clarity.

  2. Interesting parallel with the UK where the South East (Germany) succeeds by trading on the failure of the periphery (Scotland, Wales, Ireland) who then become dependent of the hand-outs of the South East in the form of tax transfers.

    Taken to its logical (?) conclusion suggests independence and separate currencies for all. UKIP take note.

  3. …..succeeds by trading on the failure of the periphery …..

    If Scotland, Wales etc. were richer, London would make more money from trading with them. How can their relative poverty help?

    If the logical conclusion to leaving the EU is the break up of the UK, then the logical conclusion to staying in is world government by a completely unaccountable elite.

  4. External devaluation would also increase the value of their debts, I think he misses that the point.

    There are, in fact, some other options. The most obvious is internal revaluation, in Germany. To some extent this is happening and with Ireland’s internal devalauation there’s been something like a 25% effective devaluation in the last two years.

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