Back to the illusion of globalization

[luvdovz]

Well, it's Bash-a-Country month, but how about bashing an entire continent (or at least most of it)? I know you want to. OK, let's look at what's going on in Europe. Cos Europe is so funny and fucked up, right? But seriously. In its attempts to save the Euro, the EU is logically advocating ever more strongly the idea for a tighter and closer

Comments

[nairiporter]

Yes, there are voices talking about a disintegration of EU in the near future. Some very jubilant voices by the way. There are talks not only about two leagues but also two currencies, one for the A-league and one for the B-league (too lazy to dig up links right now). What those jubilant ones fail to notice, or are willfully ignoring, is that if a major shakedown happens at one side of the Atlantic, it'll happen at their side as well.

[nairiporter]

The US may find out that it will have to re-negotiate its entire economic strategy and reconsider the things it has taken for granted for so long, sooner than most people might be hoping for. If this happens, another major leg will be pulled off from below Europe's chances for survival. Europe failing would have big consequences. The US failing would have devastating consequences.

[nairiporter]

Good article. But why, instead of worrying about the shortage of money for imports, don't we concentrate on investing for bringing the domestic productivity after all?

[luvdovz]

Sure. That's one of the ways to increase income into the state treasury, when export exceeds import. But to achieve that, some political and economic decisions and actions are needed. And not only that. In this situation it would really be very difficult to boost the domestic market if there's no external demand in the meantime. External demand could be boosted in many ways, but some of the most effective (and largest in terms of scales) is to popularize a certain sector, to encourage inter-regional economic partnerships (like that with Russia, or the Middle East, even China), and to build a sense of regional identity, to attract foreign investments and especially international companies, and develop certain sectors with great potential.

[mahnmut]

There is an air of pessimism in your conclusion (I recently read that Soros is also thinking along these lines; ha - cue the Soros Iz Devil crowd!) The future of the Eurozone is undoubtedly in... doubt. Right now the Greeks are ordering the pizza, and Germany and France are paying for it. It's no surprise that a number of countries want the return of the national currencies. This way everybody would know exactly what their bill looks like. But the bad kids on the black prefer not to come to that

[mahnmut]

Two things. Populist stunts for domestic consumption (4-year election cycle, politicians trying to score points, etc; you know the game).

People being fed up with paying the bills of other people. "Why should I keep being fiscally responsible, when those guys over there are always getting a free pass?" And they have a point. True, the moment may not be appropriate, but if they don't make their point now, when will they?

Not that I'm supporting their stance in this, but I'm trying my best to understand it.

[paedraggaidin]

I will admit that I am not the biggest fan of the EU, but that's because of its current structure and functioning, not its goal. I think a united Europe is actually a good thing. What I don't like is the way the treaties work against popular sovereignty, e.g. the French and Dutch sank the European Constitution by voting it down in popular referenda, so the EU comes back with the Treaty of Lisbon, specially designed to thwart popular referenda (the only country that put it to a vote being Ireland, and when that failed, they just did it again a second time and it passed).

And the Euro as a unified currency for the EU is a good idea as well, but it was implemented way too early. I mean, seriously, did anyone not think that having a currency that covered both strong, stable, relatively clean economies (France, Germany) and weak, unstable, corrupt economies (Italy, Greece), and economies whose (temporary) strength and stability came from riding unsustainable bubbles (Ireland) was a good idea

[telemann]

Mitt Romney in a speech in Iowa today: "We must not become collectivist Europe." If he really made that statement verbatim, wow.

[telemann]

He's way off about a lot of his criticisms of President Obama's foreign policy, so this comment about Europe being "collectivist" would be par for the course, but again I don't know if that's a direct quote or not.