Friday, May 14, 2010

The financial wars in Europe

"A currency without a state is difficult to manage" former Italian prime Minister Lamberto Dini

The battle between EU North and South.

The battle between debtor and creditor countries.

The battle between the triple-A credit rated sovereigns and triple-B or going to junk credits.

The battle between a strong hard D-mark and a soft drachma.

The battle between exporter (high productivity) states and importer (low productivity) states.

The battle of sovereign fiscal independence and EU oversight.

The battle of austerity versus public and private spending.

The battle between euro-phoria and dollar dilemma

These are problems that will not go away.

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