“It’s still absurd and unthinkable in many senses of the word for people who really understand what it means to have a monetary union, it’s really unmanageable and unthinkable.
“Some people that seem to think about it or have the idea of preparing for it, they don’t know what they’re talking about. In my view, it’s still not going to happen.” – ECB Vice President, Vitor Constancio
Finally someone official is saying what I’ve been saying for months! The palpable fear that surrounds the Euro-zone is itself the problem – not the EU itself. I pointed out to Members last year, when the Greek crisis first hit, that dumping Greece from the EU would be as silly as the US dumping Florida or California because they missed their budget goals.
Constâncio said the ECB was determined to stick with its current policy of introducing new three-year funds to try to counter the freeze in interbank lending, and support greater fiscal integration in the euro zone. “What we decided is very recent and it’s enough, but we never pre-commit, so we will see,” he said. “So far, we think the decisions we made are very significant and should be enough for the objectives that we are responsible to attain.”
And what is it the EU has done recently? Up to one TRILLION Euros has been pledged in 3-year funding at the (variable) ECB rate, which is currently 1%. That is enough money to fund ALL the financing needed by ALL of the EU nations for the next two OR THREE years, according to GS analyst Jernej Omahen. Keep in mind that all you have to do is borrow $1Tn at 1% and lend it at 4%…