Euro fatigue – Just how many “moments of truth” can anyone take seriously anymore?

Is it me or is the “Eurozone” are characteristically in a state of continues crisis? In fact, you might want to consider that the Euro is this years Al Qaeda. In that it’s a bogeyman intended to scare the crap out of everybody.

Speaking from the relative safety of the UK, it’s hard to imagine how on earth anyone would imagine that anybody would think that countries with different industries, populations, climates and taxes would EVER be able to operate under a single currency. Not when any one of the aforementioned list would automatically cause issues.

Real Productivity in Europe
Real Productivity in Europe

How was Greece meant to be as productive as Luxembourg or France?

Now we are greeted with this latest piece from Landon Thomas Jr entitled “Euro Zone Nears Moment of Truth on Staying Together” and I have to ask myself;

a) Just how many “moments of truth” can anybody rationally stand?

b) How many times has this “moment” been announced since the Euro decided to pull a wobbler… (as predicted it would many years ago).

In terms we can track, the European Euro crisis kicked off in earnest at the start of 2010, but had it’s roots in the major crisis of 2008. So we will set or search from 2010. But as reference to that previous time;

2008

October 13, 2008 – The China Post – “Leader hopeful on coordinated Euro crisis response”

[UK Prime minister Gordon] Brown, writing in the Daily Mirror on Sunday, stressed the need for drastic action because of the essential role played by banks; “getting a mortgage, paying the bills and saving for old age.”

However, a comprehensive approach is needed, he wrote. “For Europe, the stakes could not be higher and this is a moment of truth.”

2010

19th March 2010 – Speigel – “Moment of Truth for Europe’s common currency”

26th March 2010 – Taiwan News – “Frantic EU seeks solution to Greek debt crisis”

European leaders are facing a moment of truth at yesterday’s summit, as markets press them to come up with a financial safety net for Greece – with help from the International Monetary Fund – to stop the euro’s slide and keep debt crises from afflicting more eurozone countries.

8th May 2010 – CNN – EU leaders seek to calm markets, curb speculators

French President Nicolas Sarkozy said. “We are absolutely determined to fight speculation by reinforcing financial regulation.”

“Today was the moment of truth … either we would let the markets, instead of us, decide the fate of the Euro, or we would be capable of taking the appropriate measures to combat speculation and to exit this crisis stronger and more unified.”

8th October 2010 – GFS News – “Europ faces ‘moment of truth’ on reforms, says Barnier”

18th October 2010 – Reuters – “EU faces moment of truth on budget reform”

2011

21st June 2011 – BBC – Greece: Athens faces “moment of truth, EU’s Barroso says”

13th July 2011 – Irish Times – “Moment of truth for euro zone as Spain and Ital teeter on edge”

21 July 2011 – London Evening Standard – “This is the euro’s moment of truth – don’t blow it ”

7th September 2011 – Christian Science Monitor – “Europe’s debt woes threaten eurozone – and the US”

The eurozone will have to find its moment of truth in an internal debt threat that won’t go away.

3rd October 2011 – Reuters – “Moment of truth nears for Greece and Euro zone”

24th October 1011 – Council on Foreign Relations – “Eurozone Rescue’s Moment of Truth”

15th November 2011 – Financial Director – Eurozone on the brink as Italy and Greece stability in doubt

if Italy’s situation worsens, the euro’s moment of truth may be nearer than many think.

8th December 2011 – Daily Forex – “The Moment Of Truth For The Euro?”

2012

14th January 2012 – Sky News – Friday 13th Nightmare for the Eurozone

both of these pieces of news are deeply worrying for the single currency – and bring forward its moment of truth.

31st January 2012 – New Zealand Herald (But remove and found here) – “Davos elite depart in a sombre mood”

At a closing panel at the forum, Unilever chief executive Paul Polman said a readjustment in Europe was essential “because, if you want to really simplify it, we’ve lived above our means, and we’ve done that for too long, and the moment of truth has arrived”.

Interesting who’s calling the shots at Davos, Unilever indeed.

Ever started something and wish you hadn’t?

The trouble with this project is that the sheer volumes of stories is amazing, and I’ve now got more “euro-fatigue” than it’s safe for any person to take.

My point is that the idea that NOW is the moment of truth, versus the dozens of previous times, is frankly ridiculous.

The Euro dinosaur appears to be able to lumber on, ad-infinitum. And lets face it, they can just keep on printing more and more Euros (sorry, quantitatively easing it).

This isn’t a crisis, that is unless you are a major bank who’s lent out millions and will the relative value of that debt shrink overtime due to inflation. Then it IS a major crisis; which is why the banks are making damn sure they get the money first.

I mean, look at the current “banking” crisis in Spain.

Ponder on that, while your counting your Euro notes out for some Feta.

 

 

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