Mervyn King speaks out in "extraordinary press conferences"

[amir_j]

http://blogs.telegraph.co.uk/finance/edmundconway/...


"Mervyn King, Governor of the Bank of England, fears that America shares many of the same fiscal problems currently haunting Europe. He also believes that European Union must become a federalised fiscal union (in other words with central power to tax and spend) if it is to survive. Just two of the nuggets from one of the most extraordinary press conferences I have been to at the Bank."

[Zod]

If he means that the Eurozone would need to become a fiscal union in order to survive, then I think he's right. We should never touch it, of course and I think there is a very string chance that, rather than integrate on that level, the Germans would pull out (a referendum in Germany even today without fiscal union would produce a large majority against the Euro).

[WhoseGeneration]

MK does not face the true reality.
The shift in Global economics and ultimately, power.
His analysis is based upon a past long gone, there is no way the USA will be able to pay off it's debt.
So, how will the EU be able?
Borrowed time for the West, whatever MK or the Politicians tell you.
QE won't work and that's the only game in town.

[Tangent Police]

Zod said:

(a referendum in Germany even today without fiscal union would produce a large majority against the Euro).

A referendum anywhere would probably turn up the similar results.

Sadly, we all don't get a toke on the bong of ideology and have to put up with rude economic truth instead.

The political reasoning behind Germany (or should I say, their Social Democrats) being on board is most interesting and exposes a certain truth amongst the rest of us.

It's an experiment and in order to succeed, it must have all sorts of special treatment, as a certain outcome is desired. It's not a case of "Let's see if this improves our stability/growth/etc" but more of a "We are going to be glued together in a big socialist family and we are merely finding out ze best ways of doing it"

King is as bad as the rest of them, by even suggesting that this utter bullst has any credibility at all.

We can't get in the way of the important people's right choice. They have decided that the superstate is a good thing, despite it violating virtually every natural law.

But that's socialism for you.

[MX7]

I think MK talks from his bottom. Didn't he want the banks to sink?