from Armstrong Economics:
You said, that the creation of the Euro was the second worst act. “That undermined the entire European banking system and has led to a serious undermining of the entire global economy.” How has this undermined the entire European banking system. Could you explain this?
ANSWER: The problem of the Euro was the fear that consolidating all the debts at the outset would have created the image that they were federalizing Europe, which was the original intent. Therefore, they left each country with its own debt and only created a single currency driven by an amalgamation of governments. They then used euro bonds of each member state as the RESERVE of the banking system. As the disparity among the member states cracked the system in 2010 starting in Greece, they undermined the banking system within Europe as a whole. The Brussels politicians now argue the only way to save the Euro is to federalize Europe and to save the banking system people have to give up at least 10% of their assets.
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