Nigel Farage, the leader of the UK Independence Party, looks prescient these days. The famous UK politician long argued against joining the Euro and ceding the country’s monetary sovereignty to foreigners. Farage’s argument in favor of independence helped contribute to the fact that the UK is not on the chopping block in the solvency crisis.
In a speech yesterday he berated those who have supported the currency union and expresses his hopes that it will collapse entirely. I can only say that I entirely support Mr. Farage’s comments. The EMU does not work in its current format. DRAMATIC reforms are needed. Unless they can FULLY unite (a true United States of Europe) they are destined to continue muddling through a world of booms and busts and imbalances that ultimately result in millions and millions of people being unemployed and living in poverty for no necessary reason other than to fulfill the fractured dreams of socialist politicians:
“We had the Greek tragedy earlier on this year, and now we have the situation in Ireland. I know that the stupidity and greed of Irish politicians has a lot to do with this: they should never, ever have joined the euro. They suffered with low interest rates, a false boom and a massive bust. But look at your response to them: what they are being told as their government is collapsing is that it would be inappropriate for them to have a general election. In fact commissioner Rehn here said they had to agree to a budget first before they are allowed to have a general election. Just who the hell do you think you people are. You are very, very dangerous people indeed: your obsession with creating this European state means that you are happy to destroy democracy, you appear to be happy with millions and millions of people to be unemployed and to be poor. Untold millions will suffer so that your euro dream can continue. Well it won’t work, cause its Portugal next with their debt levels of 325% of GDP they are the next ones on the list, and after that I suspect it will be Spain, and the bailout for Spain will be 7 times the size of Ireland, and at that moment all the bailout money will is gone – there won’t be any more. But it’s even more serious than economics, because if you rob people of their identity, if you rob them of their democracy, then all they are left with is nationalism and violence. I can only hope and pray that the euro project is destroyed by the markets before that really happens.”
* Thanks to Zero Hedge for the quote and video.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.