Presently, the ECB wants the power to dictate to all EU member states’ banks of any size or specializing in any sector their reserves, interest rates, and policies. In Germany many smaller banks are not going for the idea, and yet, if Germany does get on board other EuroZone nations are economically doomed without a bailout or ability to get credit. An ECB upgraded central bank which is established without regards to fiscal responsibility cannot succeed. Let’s talk.
If and when the socialist forces of the European Union decide to upgrade the European Central Bank, giving it more power to oversee all of the member banks, and try to set it up similar to the Federal Reserve in the United States, we are bound to see problems because it is starting out on an unsound socialist foundation. If however the ECB can put its best step forward using a free-market economic principle approach, then they can get this done for Europe, save the euro, and keep at least most of the European Union intact.
Of course, no member state wants to lose its authority, and no bank wants to be governed by some international entity. The more socialist leaning nations are happy to use the Euro, at least for the time being because it shows a sense of stability, and a façade where none exists. Throwing together a bunch of nations, banking systems, and economies which aren’t working in with a few that are is no way to start anew.
What I’m saying is this; even if the ECB gets its act together, and the member nations perhaps out of economic duress agreed to it all, that does not mean this will solve the problem, or guarantee the future of the European Union into the next decade. There are so many problems behind the scenes, and this socialist theory which seems to be ingrained in the minds of the masses, that the government owes them everything, and that money grows on trees is the real future challenge they face.
Sure, it’s easy for someone who’s an economic analyst to look at the European Union from outside the box, and in hindsight of history, I don’t deny that. And yes, I am an observer from the outside, shaking my head at some of the nonsensical meetings of the minds going on with the concept of restructuring the ECB. Nevertheless, until such questions are answered, or such responsibility is taken, I don’t believe it can work. And even if it works in the short term, as socialism usually does, it’s just prolonging a larger inevitable crash of epic proportions.
We should know better than this as we continue to blow up bubbles in our economy, and the world’s economy only to watch them burst, or deflate in short order. We can do better than this if we will merely study our history, and then understand it in a global economic context. It should be quite evident that this just can’t work the way that many of the players and leaders coming together assume it will. Please consider all this and think on it.