Are you on the 'SS Euro'? Abandon Ship!

Are you on the ‘SS Euro’? Abandon Ship!

Adrian Salbuchi for RT, Published: 5 June, 2012, 20:38, Edited: 5 June, 2012, 20:38
The Euro is creaking and making all sorts of funny noises. Lloyds of London
– who have a pretty good ear for perceive impending disasters – says the
insurance market is preparing for the Euro’s collapse and is trying to
reduce its exposure as much as possible.
Robert Ward chief executive of the multi-billion dollar and almost five
hundred year old institution said Lloyd’s may have to write-down on its
£58.9 billion investment portfolio if the euro collapses. In the interview
for The Sunday Telegraph he explained the market has put in place a
contingency plan to switch euro underwriting to multi-currency claims
It seems Lloyds believes ‘Grexit’ is looking more and more likely day by
day.  Insurers are a good reference point on this, since risk management
lies at the very heart of insurance and reinsurance. London as well as
Germany are two of the key global long-term risk management markets,
counting on extensive expertise and experience in such potentially
catastrophic financial upheavals.
Another major insurer providing credit insurance for Eurozone trade – the
Franco-German Euler Hermes Group – has also stated is would be reducing
coverage for trade with Greece. Clearly, a tell-tale sign that a country is
about to go bust is when credit insurance providers decide to stop trading
with it.
Also going into Orange Alert Mode are the German mega-bankers.   Last
weekend Juergen Fitschen, co-chief executive of Deutsche Bank, described
Greece as a “failed state” run by corrupt politicians adding that even
though he did not think that if Greece exits the Euro that would immediately
lead to the collapse of the Eurozone, he was nevertheless jittery about the
whole matter adding that “what we need to do is prepare for that
Correct, Juergen!   If Greece goes, then the temptation for Portugal,
Ireland, Spain, Italy and others to follow suit would indeed be great.   And
maybe we should not just be focusing on the weak end of the Eurozone –
Greece, Portugal, Spain, Italy – but should also turn an eye on its strong
end: because even you Germans might, for very different reasons, end up
realizing that you too would be far better off dumping the Euro and going
back to the proverbially strong Deutsch Mark.
Then, Germany would have no need to bail-out and rough up “Today Greece,
tomorrow Europe!”.   As German interior minister Hans-Peter Friedrich just
told the Leipziger Volkszeitung newspaper, Germany was prepared to help
rescue Greece but only if it helps itself and honours its agreements, adding
that “We’re not willing to pour money into a bottomless pit”.
Come on, Germany!  Look at history and start understanding that you’d be far
better off looking eastwards, reaching intelligent agreements with
raw-materials-rich Russia, rather than with just dragging as dead-weight
“Old Europe” and its increasingly decadent and misgoverned American
Even quiet, conservative and bourgeois Switzerland had its Central Bank
Governor Thomas Jordan also admitting that they too were drawing up
contingency action plans in the event of the euro’s collapse…
On May 25th, writing in the London Telegraph, conservative political
columnist Bruce Anderson observed that European Union ideologues – “those
wise men” as he calls them – made a double mistake: they both
“underestimated and overestimated their fellow humans”, because although
globalization and global competition was nice …for a while… “en-masse,
human beings need the nation-state, just as individual humans need
Comparing the EU to life in a great city, Anderson explains that “there are
moments when most people want to close their front door and relax at home.
It helps to cope with all that pressure if you can live in a nation state,
where you speak the language, understand the politics, respect the legal
system,” I would add, “where you can issue and control your own currency…”
It seems that those “wise men” of old and their modern Eurocrat counterparts
in Brussels, Strasbourg and Frankfurt have been trying to run Europe by
having “a French jockey on a German horse”: two delusions that eventually
led to the single-currency.
It’s important to listen to what the British have to say about today’s
euro-crisis, because a decade ago they very intelligently accepted the
European Union but rejected the single currency. And they were right!!
As Anderson aptly points out, “you cannot use the same interest rate in
Dublin and Düsseldorf unless there are fiscal transfers. Monetary union must
mean fiscal union. On the basis of no taxation without representation, this
must lead on to political union. Instead, the Eurozone leaders told the
architect to build the roof first…. ”
The result is today’s unsustainable continent-wide crisis: rising
unemployment, top-heavy pension systems, extreme hardship for the young and
the poor which is leading to increasing social disorder, constant emigration
from Greece, Spain and Italy that presses into northern Europe…
Europe today stands at a cross-roads: in the coming weeks and months it may
be living its “To be or not to be” moment.  It has been the European Union
bureaucrats allied to the global banking mafia that led Europe to its
present woes, so, Europe: don’t look to them for “transnational crisis
leadership” and “global solutions”. They just won’t deliver!!
Rather, seek common sense solutions at home, review recent / not so recent
history; use your imagination more and your imaginary fears less.
Perhaps, the ultimate litmus test on this runs something like this:
The more angry and furious Greece, Portugal, Spain, Ireland, Italy make the
global private mega-bankers – and the IMF, ECB, Fed, and global rating
agencies – the more certain you can be that you’re on the right track.
Woe to Greece, woe to Spain, Italy and others if the day dawns when these
mega-bankers applaud you saying they’re “satisfied that you are doing the
right thing”.
That will undoubtedly mean you’ve put the noose around your own necks. For
the love of God, don’t do that!
Adrian Salbuchi is a political analyst, author, speaker and radio/TV
commentator in Argentina.
Disclaimer: The views and opinions expressed in the story are solely those
of the author and do not necessarily represent those of RT.
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