Armstrong Economics Blog/Euro €
Re-Posted Jun 5, 2018 by Martin Armstrong
Just to Clarify, we are also picking up Capital Inflows from the EU moving into Scandinavia – Denmark, Sweeden & Norway. We also see money moving into Poland and Hungary which appears to be some diversification movement. What has become increasingly apparent is the mere fact that confidence among SERIOUS money is starting to realize the EU is a failure.
As I have stated previously, the failure to consolidate the debts (see our original reports on the Euro) reflects the failure to really respect the different cultures within the EU no less trust them. This is why the debt was never consolidated and they adopted bail-ins so that one country would NOT be bailing out banks in another. This has all reflected at its core a refusal to accept the principle of a federalize Europe that MUST include transfer payments among states without prejudice.
You cannot have a system that dictates from the center but then refuses to actually respect the member states are one political body. This European Experiment has been a complete failure because it is trying to create some sort of half-baked-country in name only.
The EU should have remained as simply a trade union. Leave it at that. Centralized control was the downfall of Russia and China under a communist state system. People know best how to expand and respond to economic conditions. Germany depends on an export model and Greece depends on a tourist model. These are starkly different economics models.
Moreover, the EU should respect the individual member states that one-size does not fit all. Furthermore, the average family is better equipped to save for their future than pretend social programs that if operated by a private individual would be a criminal charge of frau