Eurozone: not fit for purpose

The failure of the eurozone is entirely of its own making.  Strong and weak economies joined together in a one-size-fits-all strait-jacket of interest and exchange rates.  Within these constraints each country was free to do what it wished as the essential fiscal and political union was not included in the package.  The commissars of Brussels and state political leaders recognised that the citizens would not accept such a union.  However, over a period of time it was hoped that a benign world economy would lead eventually to a such union by a process of stealth, in much the same way as the EU has developed the trappings of a state.

It has all gone wrong, horribly. Siren voices within the European Commission are now demanding fiscal and political union, but it is too late, the eurozone is heading for a crash.  The poor bloody infantry, the citizenry, looks on at the political failure and is not inclined to support more power being ceded to those who are the authors of the calamity.

The eurozone is out of control, hurtling towards the rocks and impossible to stop. The EU and the politicians have no way of re-gaining control.

Catastrophes are now common place, almost too much to take in.  In the past 24 hours we have witnessed the following:

• The Belgian- French Bank Dexia is close to collapse and will be taken over by the two countries. It has massive exposure to Greek sovereign debt.
• Moody's has downgraded Italy's credit rating by three notches.
• Greece will have to wait for a decision on the release of further funding support.
• Private lenders to Greece may have to suffer a further 'haircut'.

See: http://www.telegraph.co.uk/finance/financialcrisis/8806741/Eurozone-to-increase-private-sector-burden-in-136bn-Greek-bailout.html

http://www.telegraph.co.uk/finance/financialcrisis/8807528/Global-markets-endure-roller-coaster-ride.html

http://www.bbc.co.uk/news/business-15176947

http://www.spiegel.de/international/europe/0,1518,789804,00.html

http://www.telegraph.co.uk/finance/financialcrisis/8808508/EC-No-plan-to-recapitalise-banks-has-been-agreed.html
And finally, to cheer you up, an opinion from the USA on an  UK referendum on EU membership.

http://blogs.telegraph.co.uk/news/nilegardiner/100108617/david-cameron-should-hold-an-eu-referendum-and-give-the-british-public-the-final-say-on-europe/