Latest from Uncle Sol. A version of this column is scheduled for publication Monday, November 7, 2011, in The Washington Times -- Chris
Follow the money No. 91 | The ABCs of the Euro crisis
Sol Sanders <solsanders@cox.net>
The kaleidoscope of events and mock-events is moving so rapidly in the European crisis, even a dedicated netizen following events finds himself bemused.
It might be good to look at a little history:
The European effort to unify – after two bloody civil wars of near annihilation and the post-World War II threat of Soviet Communism – began with economic integration. Political unity, given the long history of European national, racial and ethnic conflicts, its mainly original French and German sponsors thought, would eventually fall into place were economic coordination achieved. Somewhere down the line, again it was assumed by the idealistic if elitist thinkers, a united Europe would achieve something like North American unity.
A step-by-step customs union followed the 1951 relatively primitive six-nation European Iron and Steel Community, the initial European Union amalgamation seed. That body reorganized the then most important industry in the face of diminishing domestic raw materials and need for revised marketing. But when the visionaries – often slowed down by parochial interests – in 1995 finally got to monetary union, they jumped a cog. For the relatively easy creation of a common currency and a central bank did not insure – nor was it more than theoretically acknowledged – amalgamating national economic policies, and perhaps more important, their bureaucracies. In fact, of course, some of the strongest economies such as Britain and Scandinavia’s opted out with reliance on the vaunted deutschemark’s incorporation as its bedrock. To do otherwise would have required commonality that did not exist even among the most advanced economies, much less their less developed members at almost “third world” economic levels.
It was inevitable when [not if], a major new economic crisis hit the world economy, the Euro would be imperiled. For it was being used by participating governments for their own individual economic strategies rather than any common development. German Chancellor Angela Merkel may now well say the Euro’s preservation is the issue, not Greece’s more parochial interests, But that, too, is 20-20 hindsight. It derives from the major EU members [again excluding Britain and Scandinavia] making another mistake: their inability to solve the Euro crisis quickly has made it a talisman for the continued successful pursuit of European unity.
In fact, the southern Europeans pretended their Euro was a truthful representation of their productivity. They could, therefore, use its perceived unlimited resources to fund a standard of living which their productive capacity did not, in fact, support. Outrageous “benefits” – retirement age in Greece at 50 – were accorded a population only a generation away from the horrors and privations of World War II and the worldwide “Great Depression” which helped produce it. Increasingly, cities like Barcelona and Athens took on la dulce vida they could not really afford with their artificial Euro.
Crunch-time revealed a stark dilemma: northern European taxpayers with their higher productivity must rescue their southern European spendthrift compatriots, or southern Europeans face slashing their living standards to levels not seen for a generation. The German taxpayers, their French fellowtravelers, as well as minor players, Dutch, Austrians, Finns, Estonians, Czechs, are yelling foul. Furthermore, there is danger such cutbacks may reach the bone, destroying these poorer economies’ ability to restart the longer process of achieving higher productivity and the just rewards of higher living standards. [This is a fundamental problem of continental economies with backward areas, not unknown even in the U.S. with its vast homogenization. One element in the present American economic debate: how far does federal taxpayers’ largesse extend to Mississippi and Arkansas?]
What’s at risk, of course, is the whole concept of post-World War II universal European representative government after the fall of Communism. There was applause in obscure corners for Greek Prime Minister George Papandreou’s threat to take the issue of Greek “suffering” to the people for a referendum rather than impose it even from an elected government. Good try! But perhaps to the long term detriment of true European democracy, North European leaders’ threats and Greek politicos’ own maneuvering will again permit a papering over. The risk is grave, of course, mandated “solutions” – the curse of Brussels for a generation now – may run into bedrock popular resistance, even civil unrest.
Can the center hold in perpetuity as it could not in the 1930s? may be the question of the hour.
sws-11-03-11
The CNN Washington Bureau’s morning speed read of the top stories making news from around the country and the world. Click on the headlines for more.
WASHINGTON/POLITICAL
For the latest political news:http://www.CNNPolitics.com
CNN: Rick Perry, on Letterman show, blames debate gaffe on 'El Nino'
After his infamous "brain freeze" that drew laughter and ridicule from his detractors, Texas Gov. Rick Perry poked fun at himself Thursday night while delivering the "Top Ten" list on CBS' "The Late Show with David Letterman."
CNN: White House agrees to turn over some Solyndra documents
The White House agreed Thursday to turn over some documents demanded under subpoena by a House panel investigating the collapse of solar energy firm Solyndra, Republican investigators said.
CNN: Tape sheds light on surreal meeting between Nixon, protesters
On a Spring day in 1970, just five days after National Guard troops opened fire on anti-war demonstrators at Kent State University, a restless president awoke in the pre-dawn hours, strolled to the Lincoln sitting room, and sat down to listen to some music.
CNN: Republican presidential candidates court controversial Arizona sheriff
Republican presidential candidates crisscross the country searching for votes. But some are going out of their way to make a stop for the vote of one person: Joe Arpaio, the controversial sheriff of Maricopa County, Arizona.
NATIONAL
For the latest national news: http://www.CNN.com
CNN: Assistant coach who reported Penn State incident threatened, won't be at game
A Penn State assistant football coach who reportedly told Joe Paterno in 2002 he witnessed a young boy being sexually assaulted in a shower won't be at Saturday's Nebraska game because of "multiple threats," the university athletics website said Thursday night.
CNN: Soldier found guilty of murdering Afghans, sentenced to life
Army Staff Sgt. Calvin Gibbs has been sentenced to life in military prison with eligibility for parole in 10 years.
CNN: Major league catcher kidnapped in Venezuela
Venezuelan federal authorities on Thursday dispatched their "best investigators" to track the kidnappers of Major League Baseball catcher Wilson Ramos, the country's justice minister said.
Washington Post: At Arlington National Cemetery, mementos for latest war dead get more personal
The headstones wear Hawaiian leis and Mardi Gras beads. They are festooned with bottles of Yuengling, flasks full of Jack, boxes of cigars.
INTERNATIONAL
For the latest international news: http://edition.cnn.com
CNN: Who is Greece's new prime minister?
As Greece attempts to fend off debt troubles that continue to threaten global markets, the man chosen to lead the country's new government is an economist who's been advising the outgoing prime minister for the past two years.
CNN: 11/11/11: 'Ones' in a lifetime
In the middle of cake and presents last year, Lynsie Schuman had a revelation about her twins. They were destined to celebrate their golden birthday on a special day - "ones" in a lifetime, so to speak.
CNN: Bombs dropped near South Sudan refugee camp
At least two bombs were dropped near the Yida refugee camp in South Sudan, resulting in an undetermined number of casualties, the spokesperson for U.N. Secretary-General Ban Ki-moon said Thursday.
New York Times: Government Policies Cool China’s Real Estate Boom
China’s nationwide real estate boom became so manic last year that many would-be buyers camped in tents on the sidewalks of this tropical island city to be at the front of the line when condominiums went on sale — even though the condos had not yet been built.
BUSINESS
For the latest business news:http: www.CNNMoney.com
CNN Money: Record 51% of moms get maternity leave
For the first time ever, a majority of working women received paid maternity leave, according to a new study. But the U.S. still has a long way to go to catch up to the rest of the industrialized world.
CNN Money: Europe's reluctant savior
The European Central Bank is under pressure to step up its bond-buying program as borrowing costs for Italy rise to dangerously high levels.
Wall Street Journal: Facebook Retreats on Privacy
Facebook Inc. is close to a settlement with the U.S. government over charges that it misled users about its use of their personal information, the latest sign of widening public concern over privacy in the digital age.
In Case You Missed It…
CNN’s Jomana Karadsheh reports that Libyans want militia gunmen roaming Tripoli's streets to leave.
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Transfer <b>news</b>, rumours and gossip from Saturday's papers: Milan <b>...</b>
Milan rivals to battle for Tevez, Porto defender hints at Chelsea switch and Aquilani eyes permanent Serie A switch.
Transfer <b>news</b>, rumours and gossip from Saturday's papers: Milan <b>...</b>Rachel Maddow Calls Out Fox <b>News</b>' New Low Against Occupy Wall <b>...</b>
Rachel Maddow pointed out that by trying to tie Occupy Wall Street to the man who shot at the White House; Fox News has reached a new desperate low. Here.
Rachel Maddow Calls Out Fox <b>News</b>' New Low Against Occupy Wall <b>...</b>Denver Broncos <b>News</b>: Horse Tracks - 11/19/11 - Mile High Report
Your daily cup of orange and blue coffee. Horse Tracks!
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Transfer <b>news</b>, rumours and gossip from Saturday's papers: Milan <b>...</b>
Milan rivals to battle for Tevez, Porto defender hints at Chelsea switch and Aquilani eyes permanent Serie A switch.
Transfer <b>news</b>, rumours and gossip from Saturday's papers: Milan <b>...</b>Rachel Maddow Calls Out Fox <b>News</b>' New Low Against Occupy Wall <b>...</b>
Rachel Maddow pointed out that by trying to tie Occupy Wall Street to the man who shot at the White House; Fox News has reached a new desperate low. Here.
Rachel Maddow Calls Out Fox <b>News</b>' New Low Against Occupy Wall <b>...</b>Denver Broncos <b>News</b>: Horse Tracks - 11/19/11 - Mile High Report
Your daily cup of orange and blue coffee. Horse Tracks!
Denver Broncos <b>News</b>: Horse Tracks - 11/19/11 - Mile High ReportLatest from Uncle Sol. A version of this column is scheduled for publication Monday, November 7, 2011, in The Washington Times -- Chris
Follow the money No. 91 | The ABCs of the Euro crisis
Sol Sanders <solsanders@cox.net>
The kaleidoscope of events and mock-events is moving so rapidly in the European crisis, even a dedicated netizen following events finds himself bemused.
It might be good to look at a little history:
The European effort to unify – after two bloody civil wars of near annihilation and the post-World War II threat of Soviet Communism – began with economic integration. Political unity, given the long history of European national, racial and ethnic conflicts, its mainly original French and German sponsors thought, would eventually fall into place were economic coordination achieved. Somewhere down the line, again it was assumed by the idealistic if elitist thinkers, a united Europe would achieve something like North American unity.
A step-by-step customs union followed the 1951 relatively primitive six-nation European Iron and Steel Community, the initial European Union amalgamation seed. That body reorganized the then most important industry in the face of diminishing domestic raw materials and need for revised marketing. But when the visionaries – often slowed down by parochial interests – in 1995 finally got to monetary union, they jumped a cog. For the relatively easy creation of a common currency and a central bank did not insure – nor was it more than theoretically acknowledged – amalgamating national economic policies, and perhaps more important, their bureaucracies. In fact, of course, some of the strongest economies such as Britain and Scandinavia’s opted out with reliance on the vaunted deutschemark’s incorporation as its bedrock. To do otherwise would have required commonality that did not exist even among the most advanced economies, much less their less developed members at almost “third world” economic levels.
It was inevitable when [not if], a major new economic crisis hit the world economy, the Euro would be imperiled. For it was being used by participating governments for their own individual economic strategies rather than any common development. German Chancellor Angela Merkel may now well say the Euro’s preservation is the issue, not Greece’s more parochial interests, But that, too, is 20-20 hindsight. It derives from the major EU members [again excluding Britain and Scandinavia] making another mistake: their inability to solve the Euro crisis quickly has made it a talisman for the continued successful pursuit of European unity.
In fact, the southern Europeans pretended their Euro was a truthful representation of their productivity. They could, therefore, use its perceived unlimited resources to fund a standard of living which their productive capacity did not, in fact, support. Outrageous “benefits” – retirement age in Greece at 50 – were accorded a population only a generation away from the horrors and privations of World War II and the worldwide “Great Depression” which helped produce it. Increasingly, cities like Barcelona and Athens took on la dulce vida they could not really afford with their artificial Euro.
Crunch-time revealed a stark dilemma: northern European taxpayers with their higher productivity must rescue their southern European spendthrift compatriots, or southern Europeans face slashing their living standards to levels not seen for a generation. The German taxpayers, their French fellowtravelers, as well as minor players, Dutch, Austrians, Finns, Estonians, Czechs, are yelling foul. Furthermore, there is danger such cutbacks may reach the bone, destroying these poorer economies’ ability to restart the longer process of achieving higher productivity and the just rewards of higher living standards. [This is a fundamental problem of continental economies with backward areas, not unknown even in the U.S. with its vast homogenization. One element in the present American economic debate: how far does federal taxpayers’ largesse extend to Mississippi and Arkansas?]
What’s at risk, of course, is the whole concept of post-World War II universal European representative government after the fall of Communism. There was applause in obscure corners for Greek Prime Minister George Papandreou’s threat to take the issue of Greek “suffering” to the people for a referendum rather than impose it even from an elected government. Good try! But perhaps to the long term detriment of true European democracy, North European leaders’ threats and Greek politicos’ own maneuvering will again permit a papering over. The risk is grave, of course, mandated “solutions” – the curse of Brussels for a generation now – may run into bedrock popular resistance, even civil unrest.
Can the center hold in perpetuity as it could not in the 1930s? may be the question of the hour.
sws-11-03-11
The CNN Washington Bureau’s morning speed read of the top stories making news from around the country and the world. Click on the headlines for more.
WASHINGTON/POLITICAL
For the latest political news:http://www.CNNPolitics.com
CNN: Rick Perry, on Letterman show, blames debate gaffe on 'El Nino'
After his infamous "brain freeze" that drew laughter and ridicule from his detractors, Texas Gov. Rick Perry poked fun at himself Thursday night while delivering the "Top Ten" list on CBS' "The Late Show with David Letterman."
CNN: White House agrees to turn over some Solyndra documents
The White House agreed Thursday to turn over some documents demanded under subpoena by a House panel investigating the collapse of solar energy firm Solyndra, Republican investigators said.
CNN: Tape sheds light on surreal meeting between Nixon, protesters
On a Spring day in 1970, just five days after National Guard troops opened fire on anti-war demonstrators at Kent State University, a restless president awoke in the pre-dawn hours, strolled to the Lincoln sitting room, and sat down to listen to some music.
CNN: Republican presidential candidates court controversial Arizona sheriff
Republican presidential candidates crisscross the country searching for votes. But some are going out of their way to make a stop for the vote of one person: Joe Arpaio, the controversial sheriff of Maricopa County, Arizona.
NATIONAL
For the latest national news: http://www.CNN.com
CNN: Assistant coach who reported Penn State incident threatened, won't be at game
A Penn State assistant football coach who reportedly told Joe Paterno in 2002 he witnessed a young boy being sexually assaulted in a shower won't be at Saturday's Nebraska game because of "multiple threats," the university athletics website said Thursday night.
CNN: Soldier found guilty of murdering Afghans, sentenced to life
Army Staff Sgt. Calvin Gibbs has been sentenced to life in military prison with eligibility for parole in 10 years.
CNN: Major league catcher kidnapped in Venezuela
Venezuelan federal authorities on Thursday dispatched their "best investigators" to track the kidnappers of Major League Baseball catcher Wilson Ramos, the country's justice minister said.
Washington Post: At Arlington National Cemetery, mementos for latest war dead get more personal
The headstones wear Hawaiian leis and Mardi Gras beads. They are festooned with bottles of Yuengling, flasks full of Jack, boxes of cigars.
INTERNATIONAL
For the latest international news: http://edition.cnn.com
CNN: Who is Greece's new prime minister?
As Greece attempts to fend off debt troubles that continue to threaten global markets, the man chosen to lead the country's new government is an economist who's been advising the outgoing prime minister for the past two years.
CNN: 11/11/11: 'Ones' in a lifetime
In the middle of cake and presents last year, Lynsie Schuman had a revelation about her twins. They were destined to celebrate their golden birthday on a special day - "ones" in a lifetime, so to speak.
CNN: Bombs dropped near South Sudan refugee camp
At least two bombs were dropped near the Yida refugee camp in South Sudan, resulting in an undetermined number of casualties, the spokesperson for U.N. Secretary-General Ban Ki-moon said Thursday.
New York Times: Government Policies Cool China’s Real Estate Boom
China’s nationwide real estate boom became so manic last year that many would-be buyers camped in tents on the sidewalks of this tropical island city to be at the front of the line when condominiums went on sale — even though the condos had not yet been built.
BUSINESS
For the latest business news:http: www.CNNMoney.com
CNN Money: Record 51% of moms get maternity leave
For the first time ever, a majority of working women received paid maternity leave, according to a new study. But the U.S. still has a long way to go to catch up to the rest of the industrialized world.
CNN Money: Europe's reluctant savior
The European Central Bank is under pressure to step up its bond-buying program as borrowing costs for Italy rise to dangerously high levels.
Wall Street Journal: Facebook Retreats on Privacy
Facebook Inc. is close to a settlement with the U.S. government over charges that it misled users about its use of their personal information, the latest sign of widening public concern over privacy in the digital age.
In Case You Missed It…
CNN’s Jomana Karadsheh reports that Libyans want militia gunmen roaming Tripoli's streets to leave.
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Transfer <b>news</b>, rumours and gossip from Saturday's papers: Milan <b>...</b>
Milan rivals to battle for Tevez, Porto defender hints at Chelsea switch and Aquilani eyes permanent Serie A switch.
Transfer <b>news</b>, rumours and gossip from Saturday's papers: Milan <b>...</b>Rachel Maddow Calls Out Fox <b>News</b>' New Low Against Occupy Wall <b>...</b>
Rachel Maddow pointed out that by trying to tie Occupy Wall Street to the man who shot at the White House; Fox News has reached a new desperate low. Here.
Rachel Maddow Calls Out Fox <b>News</b>' New Low Against Occupy Wall <b>...</b>Denver Broncos <b>News</b>: Horse Tracks - 11/19/11 - Mile High Report
Your daily cup of orange and blue coffee. Horse Tracks!
Denver Broncos <b>News</b>: Horse Tracks - 11/19/11 - Mile High Report
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