Mar

27

 It looks like Slovenia may be the next EMU member up for financial guacamole. Those indicating that the recent troubles of the financial problems in Cyprus, where a euro is worth exactly what the IMF decrees it to be worth and no more and no less, but not necessarily the same as a euro anywhere else in the EMU, were the same who said that the crisis in Greece was limited to Greece, and then that the crisis in Spain was different from Greece so there was no cause for concern. Then it became the crisis in Italy is not the same as that in Spain, which wasn't the same as that in Greece, and therefore there is no need for concern. I'll leave the upcoming problems in France alone for the moment, as it appears that Slovenia is next. (My apologies if this sounds like a financial version of Chad Gadya, but as the saying goes, "If the shoe fits…")

At some point, it's going to hit someone in the IMF/EMU/ECB Troika that it would be a lot less expensive to arrange for an orderly withdrawal of these countries from the EMU than trying to preserve the euro in its current form. I say this as someone for whom foreign exchange isn't a strong suit. It just seems self-evident to me. What am I missing here?

Victor Niederhoffer writes: 

What you are missing is that the troika joined by the present writer's country is not interested in profits. Consult the theory of public choice in the micro-economics book I gave you. The people in Brussels…. my the food is good, the women are Marilyn Monroe when they don't wear pants, and the titles of commissioner, governor, and such and the perks and the employees, and the beholden consultants and suppliers, why life is good with their trillions in the hip to maintain the boat at an even keel.


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