Friday, May 28, 2010

Arrogant sanguinity

Former Bundesbank President Helmut Schlesinger opines that the Euro is just dandy thank you.

His arguement for how wonderful it is and how it is not in danger seems to be backed up by a perfect example of what is wrong with it in the first place,
“Bringing about the end of the euro is something that one cannot plausibly conceive of at the moment,” he said. “It would involve so many complications, with so much potential for setbacks -- including economically -- that one cannot, and in my view must not, contemplate it.”
I just love that "must not". The old German banker sitting in his retirement sofa telling us what to think.
Still, a “healthy core” of countries in central Europe ensures the solidity of the $11 trillion economy, he said. “We’ve gotten into difficulties due to the Greeks and possibly Portugal and Spain will have a relatively strong impact, but this is offset by a healthy core.”
And that core is, once again... Germany.

Interestingly the Independent once called him,
"a monetary incompetent unsuited to being put in charge of the Vietnamese dong, let alone the German mark."
He was also largely responsible for the way in which the EU refused to help the pound at the time it was forced out of the EMU.

Which in hindsight was the best thing that happened to the pound and something that should at least make him pause to think about his latest pronouncement.

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