Eurozone ship is on the course that was set for it: heading for the rocks ... Two events last week saw the crisis in the Eurozone deepen – the Portuguese bail-out and the ECB's interest rate increase. But much more is brewing. Everyone is now focused on government debt as the nub of the problem. And the numbers are shocking. – UK Telegraph
Dominant Social Theme: The EU will survive. These are merely trying times.
Free-Market Analysis: Two recent articles show the trouble the EU is in. Brussels' "happy talk" – sub dominant social themes engineered to give the impression that the EU can surmount the problem – are apparently not having the desired effect anymore. In this article we will explore why. It is a notable evolution in our view.
The Telegraph article above, entitled, "Eurozone ship is on the course that was set for it" is startling in terms of its blunt talk about the REAL state of the Union (seemingly unsalvageable). The other article in the Financial Times is just as negative in its own way. Together they constitute a surprising indictment of the EU and its prospects for survival. This is big news.
Let's start with the Telegraph article. It is written by Roger Bootle who is a managing director of Capital Economics and economic adviser to Deloitte. He's also something of an internationalist who doesn't much believe in gold and silver as money, according to back articles in his archive, and is even an unfortunate fan of an emergent Keynesian bancor (Lord help us). But on the issue of the euro and the EU, in this article anyway, he is positively ferocious.