THERE SEEMS TO BE NO WAY OUT OF THE COMING EURO PANIC...
THE FALLACY WAS IGNORING THE MAXIM THAT :
ALL ECONOMIES ARE LOCAL...
EVERY ECONOMY MUST HAVE A "MEANS OF EQULIBRIUM"...IN OTHER WORDS...IT CAN'T SURVIVE WITH A HOLE IN THE BOTTOM....
THE GLOBAL ECONOMY...AND THE EUROLAND ECONOMY ARE A FICTION...
AS IS ANY ECONOMY THAT DOES NOT HAVE A FISCAL AND A MONETARY MECHANISM...CAPABLE OF FINDING A LOCAL EQUILIBRIUM...
IN THE CASE OF THE US...IT WAS SUPPOSED TO BE THE FED...IN EUROLAND...IT IS NOT REALLY THE ECB...BECAUSE THEY HAVE NO CROSS ECONOMY POWERS...
ECONOMIES ARE HYDROLIC SYSTEMS... THEY MUST BE "CLOSED SYSTEMS" TO WORK PROPERLY...CLAIMING A NEW "GLOBAL ECONOMY" IS A NONSENSE PHRASE...SORT OF LIKE SAYING "WHATS ONE MILE NORTH OF THE NORTH POLE?"... ITS MEANINGLESS...OR WORSE DANGEROUS...
THAT IS WHY FREE TRADE DOOMED THE AMERICAN ECONOMY...
AND THE EURO SCHEME DOOMED THE EUROPEAN UNION ECONOMIES...
THEY BOTH HAVE A "HOLE IN THE BOTTOM"...THAT PREVENTS EQUILIBRIUM FROM HAPPENING...
IN THE CASE OF THE US...THE HOLE IN THE BOTTOM...IS THE CHINA TRADE DEFICIT...
IN THE CASE OF EUROLAND...ITS GREECE ...AND PERHAPS ITALY AND SPAIN...WHICH NEVER WERE HIGHLY DISCIPLINED ECONOMIES...
ALL ECONOMIES ARE LOCAL...
EMBROIDER THAT ON A SAMPLER AND HANG IT ON THE WALL NEXT TO YOUR DESK...
AND YOU WILL UNDERSTAND ...WHAT COMES NEXT...!
