Wednesday, October 12, 2011

NORMAN LAMONT: Why the euro bailout's the biggest Ponzi* scheme ever (*that's the scam used by Bernie Madoff to defraud his clients of billions)

The recent decision by the Bank of England to pump another £75 billion into the economy shows that Britain, far from recovering, remains on the edge of another dip.

But what happens to the British and world economy is, to a large extent, out of our hands. The greatest threat to our economic future is what is happening in the eurozone.

The scale of the euro crisis has made one thing abundantly plain: Europe, Britain and the rest of the world would be better off if the euro had never happened. It would be preferable if it were now dismantled in an orderly manner.

Yet leaders of eurozone countries appear determined to keep the show on the road, however much voters and their parliaments object to the project.
At the end of last month, Germany’s Chancellor Angela Merkel had to see off a rebellion from German MPs to win a vital vote in the German parliament to support the expanded €440  billion European bailout fund.

Last night, the parliament of Slovakia, one of the poorest of the eurozone countries, cast still more doubt on the bailout project by voting against paying its share of the rescue fund. Read More

Note: Slovakia the only country left with a backbone will most likely be nicely persuaded to change their vote when the 2nd vote takes place

There comes a point where the political costs of rescuing the euro are too high. As Winston Churchill once observed, if we do not face reality, reality will face us.

It would be better to recognise that the euro experiment has failed.