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SteampunkCat's avatar

Two points ; EU Bills and Bonds : they are not talking about bonds, since bonds are linked to specific assets and the EU has none. They are talking about debentures. Debentures are a bet on the general credit of the issuer. It is a major difference. It means that in case of a sovereign issuer, it has the possibility to raise taxes to pay the creditors and the sky is usually the limit. Now, the second point, and it is a funny thing ; the fiscal union. We have to go back to Milton Freidman and the Euro who, years ago warned the EU that a monetary union without a fiscal union was an impossibility. Why ? It is because the budget of each State is independent, the spending are decided by the national parliament of each country. You are always at risk of not printing enough money and it is exactly what is happening in Europe. The center, in this case Bruxelles, doesn’t controlled anything and this, is leading to dramatic budget imbalance and endless printing of money by the ECB which is a failed bank, depending itself of the Bundesbank. Do you see where all of this is going ? It is ultimately an attempt to control national budget, national parliament rubbing stamping what Bruxelles will allow them to get as part of the supra-national European budget. At the same time, Bruxelles will have the ability to raise as much money as desired through the issuance of debentures, for the various pipe dream projects the bureaucrats in Bruxelles, have on their mind and to tax as much as required to pay the creditors.

Rikard's avatar

If the EU wanted to be succesful, you know what it ought to do?

Scrap the entire thing and re-form by simply importing the US Constitution and Bill of Rights as is, but applied to Europe, incorporating only the first ten amendments to the Constitution.

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