French Lunacy

In a fine example of why the attempts to save the Euro are sure to fail...
In a fine example of why the attempts to save the Euro are sure to fail, Le Figaro has lambasted the UK for not supporting the ‘pact to support budget discipline’ in the Euro Zone. This rather ignores the fact that the main thrust of the proposals (as far as Sarkozy is concerned, but not Merkel) is the very opposite of budget discipline. In a typical piece of trompe l’oeuil economics (file that one away – it describes most economics in the Euro Zone, except that it is only a very lazy eye which is deceived), they are proposing to lend the IMF lots of money so that the IMF can lend it back to the Euro Zone countries. Hold on! They are lending money to the IMF so that the IMF can lend it back to the Euro Zone? Why? Because the European Central Bank isn’t allowed to lend money to help pay government debt but the IMF is. It is all academic anyway because the Euro Zone countries don’t have nearly enough money to bail out Greece, Italy, Spain, Portugal, Ireland (poor Ireland really has tried – someone really should help it) and Belgium (which never seems to be mentioned) and neither does the IMF. Moreover, the Euro Zone countries can’t specify what the IMF spends the money they lend it on – they might spend it more sensibly on hydro-electric plants in Africa, for instance.

The sad thing is that Euro Zone incompetence is likely to beggar us all.

In an unintentionally amusing attempt to show how isolated the UK is, Le Figaro published a map (see below). It is really shocking to see that the only countries other than Sweden and Denmark which reserve the right to consult their electorates about these proposals are those of the former communist block.

ScreenSnapz
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