Nigel Farage brings up Barroso’s past and calls him a communist.
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I do not know what Barroso’s beliefs are these days but it appears he is the number spokesman of the international banking cartel in the European Union
Fox Business carries an article of the speech he gave in Brussels highlighting what he says in the problem with the Euro along with what he believe is the solution
He is quoted as saying
“Without … increased integration, convergence and discipline, we will not be able to sustain a common currency.
“Either member states accept it — to complete the monetary union with an economic union that requires full discipline, full convergence, full integration — or if they don’t accept this we will put at risk our goal,” he said.
As I myself have said in many previous articles, if this is what Barroso wants then he should positively welcome a Greek default as that would lead Greece to immediately come within the terms set out by the Maastricht Treaty.
He continues
“Any revision of the treaty should be for deeper integration of the euro area but also for a stronger European Union,” Barroso said.
This is the main theme of Barroso’s speech, closer integration, countries in the Euro zone obeying the terms of the Maastricht Treaty.
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And then out of the blue he is quoted as saying this
He said that once this greater integration and discipline was achieved, it would be natural for the 17 countries sharing the euro to issue debt together — what he called “stability bonds”, which have also been called “euro bonds”.
The Commission will present a study on such joint debt instruments next week.
“Such bonds could, if well designed, strengthen financial stability and fiscal discipline in the euro area and thus … sustainable growth and job creation Europe,” Barroso said.
So he goes from talking about stability, to talking about countries hiding their debt with other countries debt through Euro bonds.
This is exactly the thing that led to the current economic crisis ie Greece got the same borrowing terms as Germany for no logical reason other than it was in the Eurozone, which allowed Greece to borrow far and above what it could afford.
What Barroso is proposing is a continuation of this stupidity but instead of the private sector getting it wrong, Barroso is advocating governments support this plainly dangerous activity.
Barroso is suggesting Greek debt should be issued together with Portuguese, French and German debt in something called a Eurobond
This will give Greece the same borrowing costs as Germany and this is what has led the Euro to the alleged crisis it is in now.
The Eurobond will simply repeat the mistakes that have been made before. ie weaker countries getting the same borrowing costs as strong countries and this will end badly just like markets giving Greece the same borrowing costs as Germany when Greece joined the Euro.
The markets have learned from their mistake. The markets now know that just because Greece is in the Euro it should not having the same borrowing rates as Germany. The markets will now move on and give Greece the borrowing rates that are based on reality.
Barroso wants to ignore the lessons tha have been learned over the past three years and simply repeat the same mistakes again. The Eurobond is a foolish idea and shows that Barroso has learned absolutely nothing and understand nothing about the current problems in Greece.
The answer to the current problem is to let the markets find the level of the Euro. Let the market decide if Greece should default or not.
That is the only way to build a solid foundation for the Euro. Barroso seems to be doing everything in his power to undermine the Euro despite his claims to the contrary.
I changed my mind after watching this video. Barroso is a communist, he thinks the answer is for government to take over the actions already carried out by the private sector. Everything he says government should do in this speech is already done by private investors and companies.
httpvh://www.youtube.com/watch?v=_mhZGdBI_9g
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