BLAME THE VICTIMS, IT FEELS GOOD.

US NOBEL LAUREATE KRUGMAN SUGGESTS TO DISSOLVE THE EUROPEAN UNION AND THE EURO TO SOLVE THE AMERICAN CRISIS.
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Paul Krugman in its main New York Times editorial, insinuated that: "Does all this mean that Europe was wrong to let itself become so tightly integrated? Does it mean, in particular, that the creation of the Euro was a mistake?" That was after suggesting the EU did not answer the crisis appropriately because it, well, did not have enough of a political union. This below was my rebuke, and the New York Times posted it right away (thanks!)
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It is a contradiction to bemoan, as Krugman does, that Europe is both not "unitary" enough, and then to claim that national interest rates in each European country should be freed to jump all around to serve the natives. When the later used to happen, dear professor Krugman, national unemployment rates and currencies also used to jump around, with wild speculative bubbles and busts. With a few wars thrown in. Why don't we do the same in the USA, and the Dollar, and dissolve them too? Last time this was tried, the Civil War made more than one million casualties (~ 3% of the population).

The mishandling of the present crisis, if any, simply shows that Europe has to be integrated more. Europe, and the Euro, were built for more fundamental reasons than satisfying local potentates (because when local elites can play with interest rates and currencies, that augments their local potentia (the Latin word for power, from which "potentate" derives).

That Spain and others will have somewhat difficult years ahead, sure. But Spain, Greece and Portugal are doing better now than they did under the fascist regimes, inspired by the USA, that the European Union kicked out (democracy is a precondition for entry in the EU). Spain had an enormous boom for decades, and now, well, a readjustment is called for. No big deal. Hopefully it will correspond to an economic switch out of tourism and construction. The Spanish government is keen to clean up the coast from too much concrete. So there is some deconstruction to do...

As I will argue more thoroughly on "patriceayme.wordpress.com", the French stimulus is not less than the Obama true stimulus, and kicked in early (2008). True the German government has been slow and self contradictory, but it's a coalition government and several elections are coming within months. Elements of that government are running against each other!

Now Germany mostly agree with France on everything, which is all what truly matters to find European solutions to European crises.

Both Germany and France want to regulate financial markets heavily. The USA wants to talk about something else, like Europe having a bad hair day. Why? Because New York and London profited enormously from their giant Ponzi scheme, and both cities, and the elites of the countries they have enriched with it, would like to refurbish it. Well, it will not happen.

The crisis in Europe should not be overestimated: some banks failed spectacularly, but many giant French banks had multi billion dollars profits in 2008, and real estate in Lyon is still peaking. Although governments are heavily in debt, the French deficit this year is expected to be 5.5%. The one in the USA is expected to be 12%. But the overall debt of individuals in Europe is much lower than in the USA. And ultimately, that is the most important factor: Europe does not depend upon savings from other countries (as the USA does).

The greatest danger to Europe would be an attack against the European construction. It will not happen, but countries in Eastern Europe will have to learn that their boss is not in Washington. I would not call that a crisis. I would call that a solution. And getting to know the truth of history. It is not France and Britain that gave Eastern Europe to Stalin. It is Washington.

Tyranosopher
http://patriceayme.wordpress.com/
patriceayme.com

P/S: A more detailled comment along the same veins will be posted on "patriceaymewordpress". It will explain why Europe did MORE, not less, than the USA, and why Amreican screaming against Europe is just self serving propaganda orchestrated by the greedy elite that feasts on the entire world population.