Thursday, June 21

Cause of the Euro financial crisis?

While many factors have contributed to the Euro financial problem, seems t’ me the main cause is pretty simple: Ignorant, innumerate politicians kept voting for their governments to spend increasing amounts on social welfare…although it really doesn’t much matter on what, because the ultimate outcome is the same regardless.

For decades western European nations got away with this because the protection of U.S. military (i.e. paid by us taxpayers) enabled them to offset higher social spending by cutting military spending. But obviously one could only cut so much, and today there isn't a western European military worth noting. Not that that's necessarily bad, more room to offset.

But of course the pols either didn’t realize they were, in effect, spending a one-time inheritance, or possibly didn't care that they'd exhausted the offset for their huge social spending. Thus they didn't see any need to modify their financially disastrous policies, and now they're all in a huge deficit situation.

Much like the U.S.


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