Monday, February 29, 2016

Former BoE chief King predicts collapse of the eurozone

Well informed with a n economics and business hat on, travelled through the Blair/Brown years and into the coalition years makes him a voice to listen too:

Former BoE chief King predicts collapse of the eurozone -

Coming to the end of his 10 years in office, the then governor said it was “astonishing” that eurozone authorities had not realised the bloc needed higher inflation in Germany, permanent transfers from countries such as Germany to nations such as Greece, or to break up.

At the time he said: “I don’t know what the right answer is”, a view he has toughened in his book to say that attempts to find a middle way, in which Greece is offered concessional loans on lax terms by the rest of the eurozone, will not work.

“The attempt to find a middle course is not working. One day, German voters may rebel against the losses imposed on them by the need to support their weaker brethren, and undoubtedly the easiest way to divide the euro area would be for Germany itself to exit,” Lord King says.

At the other end of the spectrum a politician known to represent working people in the north west shares some of the same opinion, with the slant on welfare:

I wonder along with Boris and Gove, who else on either side will tip the balance one way or the other. Im still undecided!


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