In a succession of statements designed to coerce the Greeks into new austerity measures the central bank governor of the Czech republic has come out and said Greece should leave the Euro or accept massive new loans from other European countries.
While the ploy seems to be the same as the central bank governor of Greece, the Czech governor has put it in a different way by stating Greece must accept new loans rather than saying Greece must accept new austerity.
Miroslav Singer, the Czech central bank governor has also come out and said countries should stop pretending that banks will not need more money from taxpayers.
Or to put it another way, Singer is saying to Euro countries that the Euro must be devalued to help reduce the debt burden on the private banks.
Why it is a problem if the banks fail is not yet clear.
The common line is that people will lose their savings if the banks fail. That is true. But it is also true that the countries in the Euro also have the power to print more money in order to compensate the savers.
Just because the banks fail, does not mean that savers have to suffer.
However if this course of action is taken, a new system of money management will have to replace the current fiat money system which has been so abused by the banks.
The EU should let the banks fail and establish a commodity based currency.
A commodity based currency where companies are free to move into banking with a simple banking license.
The current monopoly of the production of money has led to the current worldwide crisis, the production of money should move from a monopolistic model to a capitalistic model.
Politicians are constantly telling us that monopolies and abuse of power is bad, the opening up of the money business is the solution which will stop entire countries suffering recessions due to bank mismanagement.
Currently there is no real competition between banks. The current economic crisis shows that all major banks work extremely closely together and have the same basic strategies.
This has led to a massively unbalanced financial system which allows investment bankers to affect the daily lives of people who have no interest in the stock market or other investments.
However there is no sign that a commodities based currency will be forthcoming.
The exact opposite. Central bank governors around the world are committed to devaluing currencies and the solution to any future crises will be even more currency devaluation.
Until mainstream politicians in Europe start to address the fundamental flaws of the current money system there will be no long-term solution to Europe’s problems.
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