Britain Alone Worst Obstacle To Euro Rescue

‘Cameron Is a Coward’: European Politicians Slam British EU Veto – SPIEGEL ONLINE – News – International.

“We jumped into a rowboat… next to a supertanker” said David Milliband, former U.K. foreign minister under Labor, criticizing the posture taken by the Conservative PM in Brussels today.

Britain vetoed the 27-nation agreement today and the other 26 member nations had to reach an accord outside the framework of the E.U. Effective yes but it is not the same.

At the center of the British dissent is banking. The financial sector is a large portion of the U.K. GDP – larger than in Germany or France – and U.K. banking laws are modeled after their American counterparts, cut-throat and unregulated. The banking sector in continental Europe is more regulated and as long as anybody could do as they pleased, the U.K. would go along. But  the treaty proposed today, and adopted by the other 26, imposes supra-nationals controls which would affect the U.K. financial sector. British banks would be subjected to the stricter Franco-German norms that are the model in Europe.  Thereof the British veto.

But those supranational controls are the only way out of the crisis. Britain, or rather its conservative government, is being incredible selfish and short-sighted. If Europe fails, Britain sinks.

The euro crisis is affecting both the U.S. and China, two major traders with Europe. China just lowered the amount of cash Chinese banks have  to keep liquid to stimulate internal spending, even at the risk of worsening inflation. That is because Chinese manufacturing is slowing down due to a drop of demand abroad.

Many in Europe feel that the U.K. should leave the E.U. altogether and be like the Swiss. That would certainly benefit the euro rescue and the world economy.


Global Markets Flicker Optimism with Good News from Europe, Home

Global Markets Flicker Optimism And Uncertainty – Bloomberg.

The new Greek government gets an early vote of confidence from the financial markets and the Italian senate approves austerity measures. 

The ECB may support the Italian securities by purchasing the 10-years notes, thus applying a downward pressure on yields.

The Stoxx Europe 600 climbed 1.3% as all 19 industries advanced. Some of the major European banks climbed 4%. The euro has gained against some other major currencies, including the dollar.

Republicans candidates have called for the U.S. to remain clear from the euro crisis. In fact, a worsening euro crisis would have very serious effects on this side of the pond and any attempts to ignore that reality can have serious effects for the U.S.

Financial markets and economies of the United States and Europe are very interdependent.

The Secret History of the Global Financial Collapse

The Secret History of the Global Financial Collapse | Watch Free Documentary Online.

I had already posted the first 3 of 4 parts of the documentary but had difficulties streaming part 4 from AJ therefore I post the whole thing, which a reader kindly had shared with me yesterday.

I thought going by parts was easier because this is between 3 and 4 hours long.