I am - to put it mildly - disappointed by the latest developments in "European affairs". I am convinced that what the EU leaders see as a "good path to competitiveness" will lead European countries into a much worse crisis with much worse effects than the (and what) mortgage crisis in the US was (and had).
It all starts with "rescuing" irresponsible politicians and scattered banks, first in Greece, then in Ireland, Portugal, and let's wait for Spain and others. It really is by no means "saving the countries," because none other than current politicians and banker-creditors make money on that "rescue."
The fact is that many European banks have a lot of money (their clients) deposited with many indebted European countries, many of which do not or will not have in the near future to repay their liabilities. Creditors will lose money. By the way, these are often German and French banks.
Why did the whole situation happen? Why has anyone in history lent to irresponsible and indebted Greece? We can say that it was the fault of investors, we can say that it was primarily the Euro, we can say that it was both. But what is clear to everyone is that profit and loss are information and experience for the future - I gained? Okay, I'm doing my job well. I lost? Bad luck, I'm not doing it well.
If those banks lost money in Greece (and so on), I would expect more cautious financing of government debt in the future. We just have to really start farming efficiently. We, who are now alive, would stop wasting our current government spending on the future, our children.
Some banks would probably put it, it is possible. Lots of people would lose money, it's possible. These would probably often be sad stories. The only ones we could blame for the whole situation would be the politicians who set up the system as it is - single European currency, high indebtedness and complete elimination of market signals, misallocation of resources. It's all their job.
However, politicians came up with a great idea - they give Greece (and others) money, so that Greece et al. then sent to the account of those creditors (banks). Lenders will be satisfied and will live up to the idea that if they invest anywhere where any euro-state flickers, they will get their money back, no matter what nonsense that the word "yield" has not seen from the fast. They will lend money, but when it comes to repayment, no one will have it, because the projects will not yield.
Under these projects, imagine, for example, an unreformed social system, unreformed healthcare, unreformed pensions, an unreformed state administration with a definitive one, a thousand and one unnecessary state office and others. Well, just the "productive issues."
"The essence of business and investment is a realistic valuation of risks. If the state provides guarantees for someone's investment, it removes part of the risk from it, artificially reduces its risk. This can lead to inefficient investment - bad loans and excessively risky investments. "
- Holman, R. Economics. 4 updated editions. Prague: CH Beck, 2005, p. 357.
Taking some of the risk from one's investment is exactly what the famous European Union, under the baton of Germany and France, does when we give money from EU members to the Greeks for their debt, which the Greeks will satisfy creditors from German and French banks. Moral hazard was at the beginning of many crises and we do not and do not learn.
The result will be that in the future we will have even more government debt, even more payments on government debt, even more taxes, even more inflation and a strong banking lobby, which, for fear of its money, will push for new and more "Euro- then the stability of v4 ++. ”Today's politicians may not be interested, because they will no longer be here at that time, that is true.
But we should be interested.
The fact that Greece "surprisingly" suddenly does not have the money to repay its debts is significant. It is such a foretaste of what will happen in the future when even the ECB's purchases are no longer sufficient. Namely - to lose 70% of a hundred is still less than to lose 70% of a thousand. Of course, creditors will lose money first. But who is the creditor? Often banks or other financial institutions in which other companies have shares. In banks, it will be our money (yes, your and my current account), in losses in stock prices, our pensions or jobs.
Euro-politicians from Germany and France are preparing a completely idyllic future for us. We will rightly remember the course and effects of the US subprime mortgage crisis as the "good old days."
Competitiveness and the growth of unifications and the fall!
An even bigger comedy is the effort to increase the EU's competitiveness, for example by "tax harmonization" and other measures that form a whole called the "Euro Pact."
This political agreement is ridiculous. It is extremely interesting that many tax havens (ie tax havens) are in the EU's neighborhood (those thieves are certainly attacking in a targeted manner!) It would be natural in the long run if, thanks to this competition, there were tax cuts in EU countries that would be driven by mutual competition from European countries.
In other words, if we want to promote competitiveness, we must make competition work. Incompetence is inability to compete! Unification is the elimination of competition, ie "non-competition." Treating competitiveness by "harmonizing" taxes is like fighting a fire with gasoline.
It is also interesting to see who is enforcing this pact - again, France and Germany, countries with high taxes (and regulations) and very complex tax systems. By the way, the evil anti-European elements subverting our minds claim that The German tax system is perhaps the most complex in Europe.
So what does Germany want to achieve with that "harmonization"? Of course, he wants to get rid of competition in the EU, so to achieve tax increases and complexity of tax systems for other members. To be one-eyed with cataracts among the blind.
Please stop using our money to liquidate our future and dissolve the association, dear Merkel and Sarkozy.
PS: And we all pay for this whole circus.