The euro monetary system is flawed.... In fact, what we are seeing today is that the structure of the monetary system is so poorly designed, it actually creates perverse fiscal linkages across member states that incentivize strategic default and exit.....There is sadly no separation of member-state financials and bank financials in our imaginary European-like financial system. So what's the end game?.....The reality is that European Monetary System was broken from the start. It just took a crisis to expose the flaws. Because the member nations failed to federalize early on, they created a structure that allows strategic default and exit to tear apart the entire financial system....
The reality is that European Monetary
System was broken from the start. It just took a crisis to expose the flaws.
Because the member nations failed to federalize early on, they created a
structure that allows strategic default and exit to tear apart the entire
financial system.
Source: JohnMauldin.com (http://s.tt/1cNAL)
There is sadly no separation of
member-state financials and bank financials in our imaginary European-like
financial system. So what's the end game?
Source: JohnMauldin.com (http://s.tt/1cNAL)
In fact, what we are seeing today is that the structure of the
monetary system is so poorly designed, it actually creates perverse fiscal
linkages across member states that incentivize strategic default and exit.
Source: JohnMauldin.com (http://s.tt/1cNAL)
In fact, what we are seeing today is that the structure of the
monetary system is so poorly designed, it actually creates perverse fiscal
linkages across member states that incentivize strategic default and exit.
............ David Zervos (courtesy of John Mauldin)
Source: JohnMauldin.com (http://s.tt/1cNAL)
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