The Euro break-up
[May 19, 2012]
It seems we are getting closer to a Euro break-up every day. While some people are looking forward to it, most people are confused or scared. After all, didn’t our dear political leaders assure us only recently that this would be unthinkable or even impossible? How could this great edifice ever crumble?
Our dear political leaders had argued that the Euro would bring fewer costs and be more efficient. A larger supra-national currency would tame the endless mismanagement of national governments. Name one good thing the Euro wouldn’t bring.
But let’s make it clear that this isn’t about Greek politicians being bad apples. They have been greedy and have been fooled, and have in turn fooled others. Most fooled of all have the people on the street been. Regardless of what Euro country we are talking about, they have all been fooled. And they have all been greedy. Greedy about rising stock markets, rising real estate markets, rising housing prices, rising this and that.
And now the blame game has started. The antagonism is being orchestrated. The parallels to the 1920’s monetary circus and 1930’s military and nationalistic build-ups are scary indeed.
But honestly speaking, the Euro always has and always will be a big fat mistake.
Replacing several lousy monopolies with one greater monopoly, will not make the single monopoly great. It will be even lousier. Why? Because the mechanisms that make a smaller monopoly problematic are made even bigger. The mismanagement hasn’t been smaller. Larger cookie jar simply means more cookies to grab. More centralized power simply means more power abuse. The money masters fooled almost everyone.
But this should have come as no surprise since a fiat currency only survives a couple of decades on average. They will all fail eventually.
A friend of mine used to live in a country that turned down the Euro in a referendum. He lived in a fancy capital suburb with the highest pro-Euro vote in the country, where close to 95% voted yes. Most likely, only he, his lovely wife and a couple of closet commies voted no. Why did he do this? Because he believed that you don’t solve the inherent problems of a monopoly by creating a larger monopoly. End of story. The only way to avoid those inherent problems is a break-up of the monopoly.
But, as the Euro break-up is getting closer, the inherent problems of monopolies will not disappear if we return to smaller monopolies. Those problems will only disappear when we get rid of the monopolies completely.
While our dear political leaders argue about what brand of monopoly they should impose, the people are in great need of money for trade. While our dear political leaders argue about what brand of monopoly they should impose, the people are starving. But do our dear political leaders care about that, or is it all about monopoly power?
Let the people solve this the best ways they can. Let the people use the money they see fit. Enough of power, enough of lies. Stay out of the way. Let’s get rid of the problems peacefully. Let all the monopolies break up. Let a thousand flowers blossom.
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