The vexed question of pan Eurozone bond issuance sits at the epicentre of the vainglorious Euro project. No currency area can function coherently or sustainably without a central treasury and the political unity this represents.
The Euro is essentially a quasi currency purporting to be something it patently is not. Its very existence unleashing an interminable debt crisis, the tortuous response to which has been ever more convoluted methods of expanding the total debt. The imposition of ERM, ECU and Euro is the manifestation of political dogma triumphing over economic reality, creating an unnecessary and unanswerable conundrum: The breakup of the Eurozone, whether through dissolution or disintegration would inflict monetary, fiscal and economic instability on a global scale, but its continued existence requires cross pollination of issuance and risk, the corollary of which is a severance of the fundamental democratic link between governments and their electorate. If individual national governments are no longer directly answerable for expenditure and concomitant borrowing, who is ultimately accountable to whom?
The transmogrification of EEC to EU, initiated at Maastricht and metastasised by the Nice and Lisbon treaties began the inexorable road to perdition. No positive outcomes remain, only self inflicted trauma.
Stephen Cherry. 1st May 2020.
BROAD SPECTRUM 