Europe runs out of time!

Rapid action is required!

Europe now has not much time to “bankrupt” EU Member States to exclude currency moderately and concentrate on the “cornerstone” countries, like Italy and Spain.

The faster this exclusion with the consequences of excessive currency can no longer draw from Brussels EURO and will be faced only with the national gross national product, the faster is the EURO sustainable “healthy”!

Since this can not occur without the consent of Greece, Brussels has a “single settlement” from the commitment of Greece to detach the condition that there currency back to the old hand and dispensed new subsidy payments of any kind.

China will only invest in EURO if a “mechanism” found and practiced to distinguish themselves from those states. See my blog http://china-will-invest-in-the-euro.blogspot.com/


Italy and Spain require urgent aid support schemes in different areas so as not to plunge off!


I want my advices to recall:

EURO and problem solving:

Europe is mired in crisis.

You have not completed a university degree or higher math studies have to be able to recognize it. But the basics after Adam Riese and common sense is enough.

This is now all become clear.

To limit the growth of the debt is in the right direction, but not the right way.
The practice is based on a steady growth strategy and is therefore a dangerous path.

That this policy is a burden for future generations leads to another topic on which I do not want to go closer.

The aim must be the reduction of debt.

The individual euro area countries have high debt and are not able pay back the loans are medium-long term.
That the rating agencies downgrade the credit rating now with the threat and have already been partly thrue, is a logical conclusion for the assessment of mismanagement.
Those who survived his relationships, his creditors will have to soon no longer participate, and to limit his spending to save the receipts.

The inclusion of economically weak countries into the Union was welcome to make was there with the development of infrastructure in these countries a lot of money. Everything that was to fund only loans, all have been clear.

Most export-heavy countries which have benefited. Leading the spring governments and the banks of this “poker game” have supported and promoted even though they knew that this debt can not be paid back on time and be repaid only by constantly new debts can.

Now that some countries, even with manipulated economic numbers have been recorded earlier in the Union, constitutes a disqualification of the authorities in Brussels .

Countries such as Greece will make it impossible for the survival of monetary union for the following reasons:

-Real economic growth is too low
Effective-saving measures are not feasible and also lead to a recession


-The interest burden of the absorbed and increasingly expensive loans can not be provided

-The sale of state assets would reduce only a small portion of the debt and is therefore the wrong way. On the other hand, are missing from this lucrative business then the revenues, which are for the budget needed. Consideration here are the social consequences of the conversion of state enterprises in the free market economy. This leads to more unemployment, and especially in difficult-to-place people. This additional financial burden the public budget. In consideration of the overall impact would be to find more expensive that the reversal of the burden of interest paid back loans would be lower than the previous income from these companies and the services and products, and thus burden the economy and higher inflation would rise.

Produce a partial waiver of the balance will also be no solution because government spending has grown so strong that it can not be covered by the real tax revenues.

Conclusion: A bottomless pit!

A waiver would bring the other hand, the banks and the lending countries in the greatest difficulties.

The issuance of bonds would € can also solve the problem. You would only public debt of individual countries converge at the expense of the remaining credit of the economically strong countries. As a consequence, higher interest rates for all debt is the consequence.

A targeted fiscal union, which also would have domestic political consequences and the individual states would sovereignty injured, is also not a sustainable solution as it would only create more revenue in a limited way. They would, however, in some countries, especially in the Mediterranean to help the state budget to manage better.
Raise the long-term credit for the economically weak countries and investments to sustain economic growth requires a lot of the time, waivers and new loans, which would slow Remaining Union and individual countries would, as already mentioned, bring greatest difficulties.

The big problem in Greece is found in a similar way in other countries of the Union and is comparable.

What can we do about the continued existence of the currency, ie EUR sure?

Some countries, like Greece have to partially withdraw from the monetary union. You have to find back to their own currency and can for the restoration of their household are applying again for a full membership.

May be at the newly competitive states to examine carefully whether the economic numbers also correspond to the reality and make the community a shot from commercial considerations to the desired time. Should also be a “gradual” inclusion.

The expansion of money supply, the purchase of government bonds by the european central bank has to stop.

The issuance of bonds is € defer to the real intrinsic value of individual bonds can have no further negative impact on credit ratings.

The spiking of “security-parachutes” is the “bull by the horns” and will only create more time. It is but then downgraded by the rating agencies and lead burden on public budgets and the credibility of the euro further.

If this “exclusion” is not carried out at short notice, failing which threatens the Union.

In the absence of a sufficient economic growth to the risk of deflation, the “off” time despite winning by security-parachutes is also inevitable.

Conclusion: It must therefore act quickly so that the credibility of the euro is not lost and true before making their announcements by rating agencies and the costs for the necessary write-downs will not be burdened by higher interest rates.

Ralf Guenther
Prophet, visionary, consultant and writer

http://ralf-guenther.blogspot.com
https://jesuschristusmessias.wordpress.com
https://twitter.com/ # / AdamKadmonRalf

 

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About jesuschristusmessias

Es gibt nur einen allmaechtigen Gott und er hat verschiedene Namen. There is only one Almighty God and he has different names.
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