Sunday, June 7, 2015

Solutions to Greece and England for the European Union

         I recall writing to each member of the European Commission an email last year that won the European Union the Nobel Peace Prize. I received no credit, no thanks, no accolades for my thousands of tireless hours saving the European Union, Ukraine, Russia, the United States and many other countries.

         The email contained a remembrance of the now deceased, but still honorable John Nash and his Game Theory of Equilibrium. In his theorem, Nash cited the fact that it is easier to gain the continued cooperation of a competitor if you did not put your competitor out of business or otherwise contribute to their failure, and thus create an enemy.
         Competing interests are  compatible and are an essential part of our modern day world economic system. The balance of trade can only be kept balanced if the risk of doing business is shared. However, Great Britain , namely England has wanted only half of the pie of risk with all of the benefits of full membership in the European Union. Now, England, by way of Prime Minister David Cameron comes before the European Union and threatens to exit the European Union.
         On one hand I can see his predicament, on the other, leaving the European Union is folly and against the economic interests of Great Britain as a whole, and against its partner countries. Can a reasonable deal be made? Sure, it can, depending on how reasonable the demands of England are.
         However, in exchange for any capitulation, full membership in the Eurozone and in the European Union must be included in the deal. You cannot be halfway through the door any longer. England benefits from the trade of the other European Union countries, but contributes little more than mouthing loyalty to the union and the Eurozone.
        England's recent bout with economic insecurity could have been avoided if it was a full partner in the European Union. Will England leave the European Union? Doubtful! Will concessions be made? Probably. Should they be made? Only if the change is negotiated with the interests of every member country of the European Union at heart.
         Considering the fact that there is no legal way for any country to leave the European Union under the Treaty of Maastricht or the Treaty of Lisbon, the threat is a negotiating ploy to gain more favorable status, without paying any higher dues for said increased status. England should pony up the guts to become full fledged members of the European Union and the Eurozone or shut up.
         Their failure to eliminate the patriarchal outdated system of political favoritism to a a wealthy few thousand British citizens smacks of nepotism and has no place in modern day economics. The patriarchs should have been cast out long ago on their ears with their astronomical budgets that are weighing down the rest of England's citizenry with stench and wasted economic efforts.

         As for Greece, back in July of 2011 when I first began advising the European Union on financial matters, I emailed each European Union Commissioner a copy of my Economic Stability Policy. Greece was humming along in its repayment of its debts, the economy was picking up. Then this moron of a Prime Minister, a socialist at that, is elected by an ignorant populous who would rather blame its woes on others, comes along with his wasteful economic policies, rehires the 50-80,000 wasteful and unnecessary government employees that had been fired because they were not necessary, were overpaid, and received benefits and bribes as part of their compensation for pushing papers across their desks, he reduces taxes, restarts failed and wasteful government programs, and in short, reverses the economic engine that was humming along.
        Prime Minister George Papandreaou understood the necessity to lighten the taxpayer's load of this
riff- raff. But, it seems that the new Prime Minister may be receiving kick backs from each new employee's bribes and corruption, which is the old Greek way of doing business. Unfortunately, this was the same system that bankrupted Greece.
        Should Greece's debt be written down? I think not. Greece should pay back in full every penny borrowed to every creditor. The fact that Greece is paying such a paltry interest rate is reason enough for Greece to get its political act together. The threats of default are suicidal in their effect. No more quarter should be given to a political machine that is operated by incompetent, unsatisfied field workers who want a free ride on the backs of their fellow European citizens.

         Should Greece be allowed to default? No. Should the Greek debt be written down? No. Should an extension of the present credit instruments be granted? If the terms are agreeable to both parties. But, every mature adult knows that an honorable man pays his debts. A dishonorable man walks away from his obligations and leaves others to carry his burden. It is time for every Greek citizen to swallow hard the stench of debt, bite the bullet, go the extra mile, work the extra hour and contribute to the central government and trust that they will not hire more paper pushers to take bribes.

         Now, If Greece and Great Britain as a whole (including Scotland and Wales) agreed that the European Union should be consolidated and that all debt of each country be purchased and managed by a CENTRAL TREASURY of the European Union and that the European Union itself would truly become a country with its central government in Belgium and its banks would be regional, and that each member state could issue their own treasury bonds to pay its own debts, then a deal could be quickly struck with the remaining twenty-six member countries of the European Union.

         So, now you have my esteemed opinion on these matters. Good day to each of you. If the world starts coming unraveled again, contact me at 937-831-8119 in the United States. My fee is one Nobel Prize for Economics that I was cheated out of.

Mark R. Winkle
The Winkle Institute for Worldwide Economic Stability

No comments: