NEXT - The fantasy EU and the economy!

Yesterday I touched on how the EU through its bungling and incompetence over Kosovo brought on the problems in Georgia. This seems now generally recognised, and I am reminded that I blogged repeatedly on the obvious dangers last February so can avoid any claim of merely being wise in hindsight. The next growing danger of the fallacy that the EU is a grouping of substance, weight or authority is well illustrated by Ambrose Evans-Pritchard in his column in the Telegraph this morning, linked here. A quote:

What we are about to see is a race to the bottom by the world's major currencies as each tries to devalue against others in a beggar-thy-neighbour policy to shore up exports, or indeed simply because they have to cut rates frantically to stave off the consequences of debt-deleveraging and the risk of an outright Slump.

When that happens - if it is not already happening - it will become clear that the both pillars of the global monetary system are unstable, infested with the dry rot of excess debt......

Europe's turn will come next. We will discover that Europe cannot conduct such rescues. There is no lender of last resort in the system. The ECB is prohibited by the Maastricht Treaty from carrying out direct bail-outs. There is no EU treasury. So the answer will be drift and paralysis. When other world leaders take on the increasingly obvious fact that the EU's leaders are solely concerned with power plays within the grouping, shuffling as much cash as possible back to their own party political organisations and clients and maximising their future pensions, perks and positions within the EU organisation - the sooner this dangerous bunch of chancers and no- hopers can be removed from any influence over world events -and the safer and more financially secure we might all become!