If everyone keen upside - What can go wrong?
At present, everyone looks at only one country and this is the USA.
But the time will come and suddenly everyone will pay attention to the new Babylon again.
And it is not somewhere, but right in the center of Europe. The name of this association is the European Union.
The creation of the European Union was first discussed in the early 1950s, when six countries announced the need to unite in order to preserve peace, social stability, economic and political union, create a single internal market and implement a common economic and monetary policy. This decision was fixed in the Rome Treaty. The number of participating countries then expanded from six to fifteen, culminating in the Maastricht Treaty in 1952.
Then we saw the Treaty of Amsterdam in 1999.
And a special place in history now takes Lisbon Treaty of 2009.
The main role of the union began to play only with the introduction of a single currency, which replaced not only the incomprehensible ecu, but also replaced all the national currencies of the member countries.
What do we have at the moment?
The rapid expansion of the union has led to the fact that all countries are included in the same association, but all countries have completely different levels of development and often mentality.
At the highest level, we see Germany and France, which in fact weurp the power of decision making. Why did they do it?
Everything is simple, the EU enlargement has sharply worsened the governability and economic stability of the union, made it difficult to make any decisions.
At present, the EU has 23 official languages. Nobody will accept English, only through the bodies of France and Germany.
As we have already said, the European Union is a mix of people of different mentalities, cultures and religions, which in the absence of borders, the increasing migration of people from the countries of the Middle East covered by wars, has led to very serious problems within almost all countries. To this we can add illegal migration from Africa. What happened in the end. Growing nationalistic sentiment in all EU countries. At the same time, migrants do not aspire to become one with the local population at all, do not aspire to master the language of the country to which they came, are not ready to accept customs, lifestyle and culture. All of this leads to hostility among the local population and leads to confrontation at the staff level. Crime rates and, as a result, social instability are on the rise. All this also leads to problems for the states that are forced to spend huge amounts of money on benefits, on maintenance of immigrants. The most interesting is that migrants do not want to work and this leads to a reduction in social assistance for the indigenous population, because there are no taxes or budget revenues from migrants.
Let's not fall into the demagogy of how the European Union was saved in 2008 or in 2011, but let's move on to the problem at once. The problem is very old. It is called the debts of peripheral countries.
Do Greek bonds yield less than US Treasury bills? YES!
Will you forgive me for my English - are you idiots?
At the same time, I do not remember Italy, Spain. Have you seen youth unemployment in these countries?
35% of the world's public debt is traded at negative yields.
25% of the total global debt has a negative yield.
$1.1 trillion of corporate debt has a negative yield.
All this is actually nominated in yen and euro.
In this case, for EUR it is a horror. Why is that?
The debt burden of such European countries as Spain, Greece, Italy is so high that it's terrible to look at. In fact, there is no solution and there will be no one.
The USA, England and Japan will print as much money as it takes to solve their problems.
But here we have the European Union with decision-making at the level of parliaments of countries.
Has the last fund, for which there were so many hopes, been ratified?
Where is the money?
Spain, with such unemployment and closed tourist centers, is bankrupt tomorrow summer.
Is Germany ready to pay for Italy, Spain and Greece? No, not ready. Even to save Greece, they attracted the IMF.
And even if you are not afraid now, I want to remind you about one small detail...
EU Bail-In Rules give the state the right to save banks at the expense of depositors of these banks. As it was recently during the banking crisis in Cyprus.
Aren't you scared for your euro?
But the time will come and suddenly everyone will pay attention to the new Babylon again.
And it is not somewhere, but right in the center of Europe. The name of this association is the European Union.
The creation of the European Union was first discussed in the early 1950s, when six countries announced the need to unite in order to preserve peace, social stability, economic and political union, create a single internal market and implement a common economic and monetary policy. This decision was fixed in the Rome Treaty. The number of participating countries then expanded from six to fifteen, culminating in the Maastricht Treaty in 1952.
Then we saw the Treaty of Amsterdam in 1999.
And a special place in history now takes Lisbon Treaty of 2009.
The main role of the union began to play only with the introduction of a single currency, which replaced not only the incomprehensible ecu, but also replaced all the national currencies of the member countries.
What do we have at the moment?
The rapid expansion of the union has led to the fact that all countries are included in the same association, but all countries have completely different levels of development and often mentality.
At the highest level, we see Germany and France, which in fact weurp the power of decision making. Why did they do it?
Everything is simple, the EU enlargement has sharply worsened the governability and economic stability of the union, made it difficult to make any decisions.
At present, the EU has 23 official languages. Nobody will accept English, only through the bodies of France and Germany.
As we have already said, the European Union is a mix of people of different mentalities, cultures and religions, which in the absence of borders, the increasing migration of people from the countries of the Middle East covered by wars, has led to very serious problems within almost all countries. To this we can add illegal migration from Africa. What happened in the end. Growing nationalistic sentiment in all EU countries. At the same time, migrants do not aspire to become one with the local population at all, do not aspire to master the language of the country to which they came, are not ready to accept customs, lifestyle and culture. All of this leads to hostility among the local population and leads to confrontation at the staff level. Crime rates and, as a result, social instability are on the rise. All this also leads to problems for the states that are forced to spend huge amounts of money on benefits, on maintenance of immigrants. The most interesting is that migrants do not want to work and this leads to a reduction in social assistance for the indigenous population, because there are no taxes or budget revenues from migrants.
Let's not fall into the demagogy of how the European Union was saved in 2008 or in 2011, but let's move on to the problem at once. The problem is very old. It is called the debts of peripheral countries.
Do Greek bonds yield less than US Treasury bills? YES!
Will you forgive me for my English - are you idiots?
At the same time, I do not remember Italy, Spain. Have you seen youth unemployment in these countries?
35% of the world's public debt is traded at negative yields.
25% of the total global debt has a negative yield.
$1.1 trillion of corporate debt has a negative yield.
All this is actually nominated in yen and euro.
In this case, for EUR it is a horror. Why is that?
The debt burden of such European countries as Spain, Greece, Italy is so high that it's terrible to look at. In fact, there is no solution and there will be no one.
The USA, England and Japan will print as much money as it takes to solve their problems.
But here we have the European Union with decision-making at the level of parliaments of countries.
Has the last fund, for which there were so many hopes, been ratified?
Where is the money?
Spain, with such unemployment and closed tourist centers, is bankrupt tomorrow summer.
Is Germany ready to pay for Italy, Spain and Greece? No, not ready. Even to save Greece, they attracted the IMF.
And even if you are not afraid now, I want to remind you about one small detail...
EU Bail-In Rules give the state the right to save banks at the expense of depositors of these banks. As it was recently during the banking crisis in Cyprus.
Aren't you scared for your euro?
Comment:
Markets usually ignore fundamentals, but when the period of denial is prolonged, then it is impossible to stop this train going into the debt abyss.
Comment:
Not legal and financial advice; any information provided here is only the personal opinion of the author.
