As I stated in past articles that my real contribution is not writing, especially considering yesterday was the birthday anniversary of Shakespeare, but in ideas. I have one for the EU. Keep in mind that I'm for the gold standard and helping Europe will only cost American jobs, but this is for my pisans who I hear are suffering even more than us due to the global crisis.
Cut It In Half!
As Solomon decided on the fate of the baby, the real mother gave up her interest for love. Today, Europe is suffering the confusion of 17 different governments with all their individual needs with one currency. If we look closer to the economies of Europe, we see two distinct results. The northern sections led by Germany and include Scandinavia and Holland. They have benefited from the euro because it is priced lower than their old currencies. However, the southern nations and I resent the term PIIGS, have lost out on the euro because it cost more than their old currencies. In fact, one of their best economic producers was tourism due to climate and the low value of the old currency. The northern nations wanted the 3% deficit rule to GDP, but today, leaders in the Netherlands are beginning to question that dogma of a rule. Germany's new banking leader, Weidmann stands by it, however elections in Europe could cause the whole thing to collapse since austerity is producing growth only in unemployment. In addition, EU figures show that overall debt has increased throughout Europe since the euro commenced from 83% of GDP to today's 87% of GDP.
Two New Currencies
My idea is simple. The northern nations which are strong exporters start a new currency among themselves, as well as the southern sovereigns. The southern governments can devalue from the euro with a new currency that will be shared among their group. The biggest question is who will join each spear. I feel that the southern half would benefit by having Russia join their currency. The Russian ruble is also a low value currency, but the kicker is Russia is a commodity nation and that would make a great fit to the energy deficient southern half. France would be a good fit too except their ego will get in the way. They should definitely not invite England as they have shown to be untrustworthy and their economic model is collapsing which worries me because we copy everything that Great Britain does. They only have finance and the military just like us.
LIARS and CROOKS: this week goes to the GSA. This government agency was caught robbing the cookie jar. They have held questionable conferences in the past. They go to Napa Valley, Hawaii and other tourist destinations, however their recent trip to Las Vegas tops them all. They managed to spend over $800,000 in a "conference." It is just like last week with the Secret Sevice. These government agencies are all overpaid, underworked and show no responsibility to the public. When their leader, Martha Johnson testified before Congress she stated,"I will mourn the rest of my life the loss of my appointment." She spoke the truth. Where else could you receive the salary that she got, with perks as high as a totem pole and no oversight. Another executive of the GSA, Jeffery knows how to spend and entertain. It is said that the "workers" put on a play with the theme being how to waste money without being caught afterwards. Gotta love it! This is another reason we need a new political party in the US and as always, End the Fed!
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