Showing posts with label Euro. Show all posts
Showing posts with label Euro. Show all posts

Wednesday, November 30, 2011

Wait, Huh?

Most right wingers I know these days are frothing at the mouth about Europe. It makes sense if you stop and think about it for a moment as it flies on the face of the basic foundation of their "enlightened self interest" ideology. Countries banding together and creating a single currency? Sheesh...might as well start stocking up on the canned goods. If only the markets were allowed to work on their own and government would stay well out of the way, they foam.

Yet, a closer examination of the current woes in Europe reveal a far more complex situation. What a shock. First of all, there's this.

World stock markets, glimpsing hope that Europe might finally be shocked into stronger action, staged a big rally. The Dow Jones industrial average in New York rose almost 300 points. In France, stocks rose 5 percent, the most in a month.

Wait, STRONGER action? I thought markets only responded favorably when governments were laisez faire and shit. So what sort of "stronger action" are we talking about?

One proposal gaining prominence would have countries cede some control over their budgets to a central European authority. In a measure of how rapidly the peril has grown, that idea would have been unthinkable even three months ago.

Allowing a central European authority to have some control over the budgets of sovereign nations would create a fiscal union in Europe in addition to the monetary union of the 17 countries that share the euro currency.

HOLY SHEE-IT!! A central European authority? JAY-SUS H. JOHNSON!!! Time to add a fuck load of guns and ammo to the bunker. There is no doubt in my mind that we're going to start hearing an uptick in paranoid shrieking from this side of the pond about the "Amero."

And I'm still wondering why the free market wants stronger government action.

The problem in Europe has always been that they have a monetary union but not a fiscal one. Certainly, this monetary union has added strength to the idea that economic cooperation prevents military confrontation-something the continent sadly knows all too well. But having a monetary union isn't enough. A fiscal union (as we have here between our states) is also important. If you're going to have one, you have to have the other and that's been the mistake all along.

Now, it's no problem to debate whether it's in their best interests to even have both. On the one had, the EU's combined GDP is greater than ours. On the other, however, decades old squabbles and ancient tax policies seemingly make working together impossible. And there are a myriad of issues in between that warrant serious thought.

Where I draw the line, however, is the paranoia about control. Honestly, it's not even warranted. If there's one thing that this entire crisis has proved, ineptitude, not totalitarianism, is usually what prevails these days when it comes to interstate unification. I mean, we're still working out the kinks on ours out, right?