By johnredwood | Published: July 13, 2015
So they lied again. There is no agreed deal or Grexit this morning, after all that briefing about the crucial summit and the final decision. No wonder fewer now believe them. How can you run a currency and a banking system when the authorities are so visibly unable to deliver what they promise? It’s time they asked themselves some more fundamental questions.
Is there any level of youth unemployment that might make the Euro area change policy? Apparently a majority of young people out of work in some countries is fine.
Is there any level of general unemployment that could cause a change of heart? Unemployment of 25% is acceptable in southern countries to the Euro leaders.
Is there any degree of disruption of banks that is too high a price to pay? The Cypriot banks were closed down and offered limited withdrawal for weeks, and now the Greeks have had two weeks with no functioning banks. Is this satisfactory in a first world currency
Is there any limit to how much money people and companies can lose by depositing euros in a Euro area regulated bank? In Cyprus larger depositors lost half their money. In Greece depositors have been unable to withdraw their money for two weeks.
Is there any limit to the inequalities around the zone? Is it acceptable that benefit levels and wages are so much lower in the east and south than they are in the north?
Is there any limit to how large the German surplus has become? How can the zone function properly when its largest area amasses an ever larger surplus earned by exporting to the rest, but is unwilling to recycle the money?
Is there any concern amongst the zone’s leadership that it is throttling democracy? What is the point of a Greek referendum or an Italian or Spanish election, when economic policy is dictated from Brussels whatever voters might want?
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