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The euro crisis is back, and resolving it is not getting any easier
The Economist (Charlemagne) – Apr 21st 2012 | from the print edition

“LIKE Brussels, with its fickle weather, the euro crisis enjoyed a hint of summer but has now returned to wintry gloom. The sun shone after the European Central Bank took action to avert a credit crunch. Now the storm clouds are blowing in from Spain. Yields on Spanish bonds are rising dangerously, and Italian ones are close behind. Like Spain, Italy will miss its deficit target this year and next. Portugal may also need fresh support.
For Eurocrats, these are but passing squalls. Summer will come, they say, so long as everybody sticks to the plans for deficit reduction. Spain is on track, insists Jean-Claude Juncker, head of the euro group of finance ministers. The IMF this week revised up its growth projections: the euro zone’s recession this year will be milder than it previously thought. So why the renewed panic?
………… ……….. ………. …………..
Perhaps leaders will change their minds when confronted with the dreadful prospect of a break-up; perhaps the ECB will bend the rules again rather than face extinction. Or perhaps the time will come when the world imposes adjustment on the whole euro zone, and not just on its most troubled members. By even the most optimistic view, matters will get worse before they slowly and painfully get better. A recent presentation by Goldman Sachs speaks of Europe’s long march to recovery. But unless the politicians deal with the euro’s underlying flaws, it could become a long and painful death march.”

Comment by Jerry Mager  April 22nd 2012

A more apt heading for this Charlemagne would have been Eliot’s: The Waste Land of the Euro, for April might prove the cruellest month indeed.
Eliot’s words are way past symbolism and become literally applicable to this bizarre ordeal we find ourselves in: “April is the cruellest month, breeding / Lilacs out of the dead land, mixing / Memory and desire, …
What are the roots that clutch, what branches grow / Out of this stony rubbish? Son of man, You cannot say, or guess, for you know only / A heap of broken images ……
And here is the one-eyed merchant, and this card, / Which is blank, is something he carries on his back, / Which I am forbidden to see …”
One wonders how the poet could possibly know, for “ Madame Sosostris, famous clairvoyante, / Had a bad cold ..” so he informs us.

This Charlemagne ends neither with a bang nor a whimper but with reference to a “recent presentation by Goldman Sachs” which “speaks of Europe’s long march to recovery.” I fear that this blogger misread Mao Zedong’s Long March for Eliot’s Journey of The Magi, The Magi of course being the Messrs Monti, Draghi and Papademos from the House of Goldman Sachs, who presently govern the Eurozone countries and cater to the interest and well being of us all out of the goodness of their hearts. So, instead of a long march to recovery this march might well turn out to be a painful death march – as the blogger puts it – along the Via Dolorosa indeed.

Beginning at the House of Pilate in Brussels, where all the politicians and eurocrats wash their hands of the euro and ending at Golgotha, that place of skulls.
Birth or Death? There was a Birth, certainly, /We had evidence and no doubt. I had seen birth and death, / But had thought they were different; this Birth was / Hard and bitter agony for us, like Death, our death.”

We saw and lived through the birth and growth of the Euro and shall we now witness the death of it?
I do hope Eliot proves himself to be wrong after all and that in the meantime Madame Sosostris has fully recovered from her cold too. But I am not at all sure and tranquil. One wrong sneeze and this house of cards will yet collapse and crumble.

verdere LINKS:

http://nl.wikipedia.org/wiki/The_Waste_Land

http://tegenlicht.vpro.nl/afleveringen/2011-2012/Goldman-Sachs-en-de-vernietiging-van-Griekenland.html

http://www.presseurop.eu/nl/content/article/1177321-little-help-goldman-sachs

http://www.youtube.com/watch?v=Eyz-_wpycF8

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