ITALY:.... A professor from the London School of Economics gives his opinion + Pritchard + 154 German economists
http://plus.lesoir.be/158112/article/2018-05-22/italie-pourquoi-peut-craindre-une-sortie-de-leuro#
https://francais.rt.com/economie/50925-154-economistes-allemands-disent-nein-reforme-euro-macron
1...True: the real income of the average Italian is now lower than before euro 1999
2...False: everything is only the fault of corrupt politicians, says the professor, while political corruption existed long before, but that is not the determining factor. The determining factor is the EU+euro+globalization which completely destroyed the country
3...True: a currency parallel to the euro will blow up the system
4...For Pritchard, it's the moment of truth for the euro zone
5...The 154 German economists refuse mutualisation of debts and want a procedure for excluding bad students from the euro
In summary, if there is a parallel currency or an exit from the euro, the whole euro zone will therefore explode in the cascade of official bankruptcies of States/banks/insurers/companies/individuals in debt with the solution of a federal Europe, a time to save the appearances of a European situation in the Greek-Argentina-Venezuela style.
The question is no longer if it will happen but just when, i.e. when the secret societies will have decided on a precise date for world bankruptcy.
Politics and voting are illusions and have absolutely no power over this fact, hence the accuracy of the prophecies.
Anonymous contributor
In a column published by one of the main German dailies, economists plead for a Europe of rigor and denounce the French president's euro reform project. They even recommend a procedure for leaving the euro.
154 German economics professors warn against the further development of the European monetary and banking union towards a "union of responsibility" that some French media have preferred to translate as “debt union”. Their open letter, published on May 21 – day of the announcement of the formation of the new Italian government – by the German daily Frankfurter Allgemeine Zeitung (FAZ) directly attacks the French president and that of the European Commission. Thus they write: “The proposals of French President Macron and the President of the European Commission, Juncker, mentioned in the coalition agreement present great risks for European citizens.”
Indeed, the coalition agreement, signed on February 7 in Berlin by representatives of the conservative parties CDU-CSU and the social democrats of the SPD, begins with a chapter entitled “A new impetus for Europe”. This refers in part to Emmanuel Macron's proposals supported by Jean-Claude Juncker to reform Europe and the euro zone.
But, for the economists who signed the letter, the use of the current European Stability Mechanism (ESM) as a guarantee of last resort against bank failures would reduce “the incentive to bear the weight of bad debts”. Moreover, it would be “to the detriment of growth and financial stability”. They also and above all believe that a European pooling of bank deposit guarantees would result in everyone bearing the cost of the errors made by certain banks and certain governments. For publishers of FAZ there is obviously no doubt that among the banks and governments targeted, Italy occupies first place, as evidenced by the illustration chosen: a view of the Coliseum in Rome accompanied by the caption “The new source of euro-concerns”.
"Do not reward bad behavior"
Economists are no more enthusiastic about the creation of a European investment fund to support structural reforms because, for the signatories of the letter, this project would inevitably lead to transfers of money and loans to countries in the zone euro who have failed to carry out structural reforms and would amount to 'rewarding bad behaviour'. Clearly, there is no question of creating a source of financing intended to help the countries of southern Europe to get out of debt.
As for a Minister of Finance “having a fiscal capacity as an interlocutor of the ECB”, they do not want one either, because according to them he “would contribute to making monetary policy even more politicized”.
At the end of this letter, the economists finally show that no policy of supporting the economy through public spending or monetary issuance can find favor in their eyes. They thus criticize the so-called quantitative easing policy adopted, under the presidency of Mario Draghi, by the European Central Bank since 2015.
This monetary strategy consisted of supporting access to low-rate credit via a system of sovereign debt buybacks by central banks in the euro zone. For them: “The very large purchases of bonds by the European Central Bank (2 billion euros in September 550) already amount to public financing through the central bank.” And they believe that this policy must end quickly.
Debt pooling would undermine growth
The economists conclude that “the principle of responsibility is the cornerstone of the social market economy” and that this “union of responsibility undermines growth and threatens prosperity throughout Europe” . They ask the German government to “return to the basic principles of the social market economy” and consider it “important to promote structural reforms instead of creating new lines of credit and incentives for economic misconduct ".
They also recommend that voting rights within the ECB be “linked to accountability”. A polite way of asking that the governors of central banks in the euro zone whose countries do not meet the stability criteria – public deficit and debt contained within the respective limits of 3% and 60% of gross domestic product (GDP) – be deprived of any influence on the monetary policy of the ECB.
Exit from the euro recommended for bad students
Finally, they consider it necessary to "create an insolvency procedure for the States and an orderly withdrawal procedure", in other words: an exit from the euro zone for the States which are unable to meet the repayment deadlines of their debt.
It is difficult to go further in condemning the reform project defended last April before the European Parliament by Emmanuel Macron. At the time, the French president justified it by the need to counter, in the name of "a Europe that protects", the dreaded progress of eurosceptic parties in the run-up to the European elections of 2019. A concern shared by Jean-Claude Juncker , also implicated in this letter from the fathers-the German rigor.
source: RT.com
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