Why the European Union's Economy is Languishing
Let me start off with debating whether economists know the definition of “economic stability” or not. I'm not an economist, I'm a Financial Consultant and a problem solver. My advice assisted the European Union in winning the Nobel Prize in 2012, which they afforded no credit to the architect, namely me. That's okay, I'm used to it. An idea takes wings once you publish it. Some people plagiarize literary works, economists plagiarize other's ideas.
Ireland did not have to buy the Allied Irish Bank. It could have allowed Ireland's two other big banks split the AIB's debts and assets. The AIB would have been fine if it had not tried to follow the example of the United States banks and fund mortgages for people with no money down. Once again, greed, not common sense was the culprit in that scenario.
As for Great Britain as a whole, you sit on the sidelines arguing with the referees instead of becoming part of the game. It's easy to complain when you are only a spectator and not a player. Put your money in the pot and help create the United European Union or quit your bellyaching! You didn't want the wealthy to pay their fair share of the economic bail out by placing a tax on stock and bond transactions which would have gone towards job creation, which is why your economy is stymied.
As for Greece, Greece needs to develop its markets, cut back on the political hand greasing (as every country in the United Nations needs to), establish a manufacturing base for the non- elect thinking man so they can earn a decent living, get your people off the dole, and by the way-- collect your taxes in full and pay your bills. Those last two would help a lot.
My friends in Cyprus, we tried to get you to cooperate in 2011 and 2012 with the debt consolidation plans going forward. The ECB tried to get you on board with the program, but you said, “No thanks, we got this! We don't want your help.” Join the United European Union and get your debts consolidated already.
As for Spain, France, and the rest of the European Union, one year of paying your debts and having a near balanced budget and I hear you grumbling all the way over here in the United States. Living within your means is never fun. Whooping it up is only fun until the hangover and the bills come. The biggest problem that the European Union has is its citizens sense of entitlement and government oversight and interference in private citizens business affairs.
You killed your own economies, and now, as the patient is coming out of its year long coma, you want to run a marathon or ride in the Tour de France. Let us be realistic. Neither scenario will happen anytime soon. The patient is still sick. The tumor of financial largess and inequality is still a problem. The “elite” still have too much influence, power, and arrogance to believe that they caused this financial problem that their nations are presently facing. It is time to take a long look in the mirror and do what you can for your employees, your friends, your neighbors, your (oh, my God relatives), the lad or lass down the street that you stick your nose in the air at, and work together to create jobs, to instill a sense of camaraderie amongst yourselves, to reassess your priorities, take stock of what is important, and help one another survive physically, economically, and psychologically as you learn to pay your bills and cooperate with one another instead of fighting each other over who gets the larger slice of bread.
There is a light at the end of the debt tunnel-- and it's not a train coming to derail you!
If you would work together, grow your gardens, feed one another, remove your ne'er do well politicians and other crooks from positions of influence, create jobs (no matter how small), pay your full tax debts, pay the debts of your country, consolidate the debt of the European Union, create a European Union Treasury and Euro Bonds, create the EU Federal Reserve which will be jointly controlled by the European Union Legislature and the ECB, move the ECB out of Germany, remove Angela Merkel from office (as well as other controlled politicians), and pull together, even if it is only to hate me, the author of austerity, that's okay too. I can handle it. I've been advising non-compliant people since 1985 and helping the get back on track.
As I have advised you at least ten times before, take the savings from paying down your debts (not paying interest on the past debt are you?), and create jobs with that money. Cut the waste from your budgets and put that money towards job creation.
After each economic correction, the sun comes out again. The flowers bloom, the birds wake you up at four in the morning and crap all over your car, and life goes on better than it was before. Now you have a new set of priorities. Save when and where you can. You never know when your government will screw up the economy again!