Is there a EURO-crisis?
The answer is a simple: NO. So why do politicians constantly say they have to save the Euro? There are two possible answers: denial of the real problem or ignorance. If the reason is ignorance the Euro-crisis is solved instantly the moment politicians picture their misconception. Would there be a $-crisis when Greece had lent too much in US-dollars? Of course not!
The cause is the same as the crisis in 2009, from which we still didn't recover: the financial sector. They lent too much money to countries like Greece. Why did they do that? Again for boosting their profits and bonuses because advising and selling the bonds to pension funds etc is profitable. Their incompetence or rather opportunism is responsible for the new crisis; for which they want society to pay the bill again.
The financial sector has become a menace to society. Blown out of proportion in relation to the simple economic function it supposes to have; reallocation of financial means and payment services. The financial sector should focus on the long term instead of hopping from one annual profit to the next without considering the consequences of their greed. They don't care and as long as politicians allow them to satisfy their hunger they will continue. They think, no they know, that the profits they “earned” on paper will produce huge losses years later. Do they care? Do we eat paper?
Politics and the banking industry are tightly entangled on the executive level; in undeveloped countries we call this symptom nepotism. Politicians and bankers concoct the Euro-crisis to hide the real cause. The financial sector wants society to pay the bill for their incompetence without taking responsibility. What will be the next huge crisis that boosted their bonuses?
It is essential that the investment banking activities are separated from the daily payments services and deposited money. Banks juggle with losses on paper and say “We cannot go broke because society will suffer immense”. What a crap! The only way out for society is a shake out in the “Investment Banking” industry.
Greece must restructure their debts; there is no other way. There is no reason for Greece to leave the Euro unless politicians are incapable to restructure without the help of their own currency; in that case the drachma forces them. Politicians, bankers and economists argue that this is impossible because of the contamination risk to countries like Spain, Italy, Portugal and Ireland. Again this is nonsense.
Keeping the system of supporting these countries by artificially keeping the interest rates low by buying bonds and other monetary actions by the ECB will only further increase their debt problems; urgent necessary decisions will be avoided because they are political unpopular so the problem only gets worse.
In the sake of our savings, investments, pensions, real wealth, social security and compassion the cancerous swelling called Investment Banking should be surgical removed from payment services and money savings so this sector can take responsibility. Economies can then focus again on their actual purpose; the production of tangible goods.
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