Tuesday, 19 March 2013

If Cyprus gets out of the Euro…

If Cyprus gets out of the Euro…

If Cyprus gets out of the Euro, it would be bad news for other countries that are still in the Euro-zone because Cyprus could become a very serious competitor with prices that would be absolutely lower compaired to prices that exist within the Euro-zone.

Of course that for ideological reasons the German government and other governments would like to force Cyprus to maintain the Euro by paying the very high cost of selling all its assets and becoming a shadow country like Greece which has sold its political independence in exchange for bailouts.

If Cyprus were to leave the Euro-zone and proved to be a success… this is the one thing European bureaucrats are very afraid of… other countries would follow the example of Cyprus and choose to get out of the Euro-zone.

Why should a country like Italy be frozen by Euro policies when Italy could be perfectly capable of devaluing its currency, being able to implement its own taxation system without the interference of the European Central Bank? The Euro was fundamentally an ideological tool and this is why it has failed to deliver.

The idea of having weaker countries running at the same speed as Industrial Germany is absolutely mad. Argentina tried to peg its national currency to the USA dollar and ended up selling its gold reserves and defaulting payments of its foreign debt for the sake of maintaining an illusion of prosperity.

Did the governments of Greece, Portugal, Republic of Ireland, Spain, Italy and others learn anything from what happened to Argentina? What happened in Europe is not new and politicians should have been wiser and should have rejected the ideological folly of the European Union bureaucrats and their acolytes.

Families in Cyprus, or anywhere else, need real economies that create viable employment - and by viable employement I mean employment that produces decent living standards. The ongoing upheaval created and promoted by ideological stupidity will continue until people decide to walk away from the illusionists also known as 'mainstream political parties' that created the crisis that we are facing.

 

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