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ONLY EUROPE CAN FIX EUROPE

The latest rumor is that the IMF is going to come to Europe’s rescue:

  • G-20 CONSIDERING IMF LENDING PROGRAM FOR EUROPE:NIKKEI;
  • G-20 CONSIDERING $600B IMF LENDING PROGRAM FOR EUROPE: NIKKEI

This is absurd.  Europe has a structural problem with their currency system.  There is a lack of sovereignty within the EMU which has created a national solvency crisis by virtue of trade imbalances.  The only way this can be fixed is by fixing the structure of the EMU by creating a truly sovereign monetary system.  This means full fiscal union or break-up and reversion to the old currency issuing nations.  More IMF money is not gong to fix this.  More Fed swap lines are not going to fix this.  More money from China is not going to fix this.   This is a problem that no outside entity is going to resolve.  It can only be fixed by altering the Treaties and choosing to move in one of the two aforementioned directions.  It’s that simple.

Europe needs to fix Europe’s problems.   No one is going to do it for them.  End of story.

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