WHAT UNION?

We could, in addition, ask the question, What G8? It is difficult to make any judgement on a group of
so-called world leaders, spending their weekend papering over the cracks.

The early response from initial talks was a comment from President Obama, along the lines of growth coupled with constraint. Finally, it was decided on growth alone, whatever that means. Should it mean even more borrowing? Chancellor Merkel could never agree to that, and quite rightly so. The French, on the other hand, have made the decision, socialist style; live eat and be merry, and let the devil take the hindmost.

Observers of the shambles that is Europe, and the Eurozone in particular, will understand that the Union cannot survive with differing philosophies. The Germans, whose forebears learned the lessons of financial melt-down between the two world wars, and the rules never change. Living beyond one's means is futile. Other nations, nevertheless, refuse to be bound by such strict rules. France, in particular, whilst facing major problems in it's banking system, has a new socialist president advocating a reduction in the retirement age, plus a large increase in the state sector jobs, all on borrowed money. Even Holland is weakening, with a view to borrowing more; hoping for a miracle down the line.

Sweden on the other hand, under the guiding hand of Anders Borg, their right of centre Finance Minister, is making inroads into the nation's welfare dependency. The Finns are also showing some signs of more responsibility. We are due to visit family in Denmark shortly, where I'll be taking another look at their extremely expensive system of socialism.


BEWARE OF EXTREME FACTIONS EMERGING.

TWIST OR BUST.

As Greece lurches into its eleventh hour as a member of the Eurozone, something that has been inevitable since day one of the currency's short career, how will this leave the big players, the ones that dreamt up and created this mayhem? Political dreamers are, naturally, always going to make a mess of the immediate future. They cannot see the economic reaction to a political fantasy as the picture of a Europe, dictated over by a few, often unelected, bureaucrats. Blinded by the idiotic belief, that the whole of Europe could be bound together, and controlled by a Brussel's elite. This was never a starter.

So what can level headed people learn from this fracas? The pro single currency supporters should hang their heads in shame; the continent cannot continue to operate with this 'gung-ho' attitude, pretending all in the garden is well. It's a disaster. The future won't be easy either way. Trying to stave off a Eurozone collapse is ridiculously expensive, and the alternative could be even worse, but unavoidable. Having paid your money (loans), you takes your pick.

The important lesson here, is:


NEVER LET LITTLE GIRLS AND BOYS MAKE UNDEMOCRATIC DECISIONS.

HAS FRANCE GONE BUST YET?

Many Europeans are spending their time gazing at the financial situation in Greece; the big game however, is France. A nation with a diminished credit rating, which will come under even more pressure, as President Hollande increases the borrowing, to finance expanding productivity. Anyway, that's the theory. Well has he got some nasty shocks due to him. First he has to convince the Germans of his stupidity; who, in turn will recommend that he reads Adam Fergusson's 'When Money Dies'; a history of the hyper-inflation during the nightmare years of the Weimar Republic, following the period after the First World War. Angela Merkel won't want to be associated with that kind of nonesense.

We are not the first people to suggest that the BBC will be wholeheartedly behind the new French President, whose knowledge of economics is probably on a par with those well known Marxists, Britain's two Eds, Miliband and Balls, not forgetting next door's cat. The term, according to the Beeb, is growth. The correct description is, of course, increasing the debt. Something, unfortunately, the BBC doesn't understand, as it relies on money extorted from the public.


DETOUR AHEAD PERHAPS.

COMING SOON, MELTDOWN MAYHEM.

As expected, Europe got the election results anticipated. Greece's was an obvious outcome, with much of the electorate subject to horrendous reductions in their living standards, not all of them necessarily having taken advantage of the previous 'out of control' system. As ever, the responsible ones have to pick up the tab.

France on the other hand, has voted to follow the Greek pattern, spending money that does not exist. Stupid of course, but typical of socialist politicians, who will promise anything to attract votes. Any economy, be it  domestic or national can only survive by keeping its debt to the minimum. France has operated in a credit bubble since the mid-seventies. The theory creating one stimulus after another doesn't work, if it did it would now be a very wealthy nation.

The Euro will now come under the severest pressure, which will be much to the chagrin of Angela Merkel. Ultimately, this will see a change in the membership of the Euro Club, which could collapse completely. Whatever the outcome, it needs to be resolved swiftly. It is this very type of problem that brings about dissension between nation states which, in this case, was self inflicted. The single currency was bound to fail. It was brought about to force nations to become as one politically. The fact that it couldn't work financially was considered irrelevant.


WHEN IT HAPPENS, THE FALL-OUT WON'T BE PRETTY.

POSSIBLY A WEEK OF IGNOMINY FOR EUROPE.

During the last week, Brussels has got excited about it's space flight to one of Saturn's moons. This little exercise will cost an admitted 1 billion Euros. Simultaneously, the Berlin Group, a bunch of federalists who wish to dictate a common tax regime throughout the European Union, with a view to introducing a transition tax on all banking deals. This would go to funding losses of under performing Eurozone members, with the largest contribution coming from the City of London. I'm sure I don't have to remind readers, that the UK does not operate in the Eurozone. The proposition is typical of socialist accounting, robbing Peter to pay Paul.

However, these little sideshows could be blown apart by what will happen at the polls in France and Greece this weekend; should, as expected, Francois Hollande succeed Sarkozy as France's new President, promising all kinds of economic mayhem, with the usual socialist nonsense of spending money that does not exist. This is a 'no win' situation, should he go ahead, the nation goes bust. Alternatively, in not living up to his promises, one can only envisage strikes. As for the Greek situation, heaven only knows. It's suggested that the far right is gaining support, as with much of Europe.

France nevertheless holds the key. Hollande, a socialist nonentity, who is the father of four children from his former relationship with Segolene Royal, Sarkozy's challenger in the last presidential elections. How? one might ask, does he, Hollande, become the socialist candidate following the political demise of the front runner, the alleged priapic, Dominique Strauss-Kahn. Strauss-Kahn, former head of the International Monetary Fund. Could he have pursued the same policy, having spent years advocating economic common sense?

NEXT WEEK COULD BE A LITTLE DIFFERENT.