Greenspan: the European Union is doomed to collapse

Alan Greenspan said in an interview with CNBC that the European Union will collapse due to the large gap between the northern and southern countries.

“At the very beginning of the creation of the euro in 1999, it was expected that the southern eurozone economy would behave in the same way as in the north; the behavior of the Italians will be the same as that of the Germans. But this did not happen, ”says Greenspan. "Instead, Northern Europe began to pay for excessive consumption of Southern Europe, that is, to cover its deficits."

“The effect of cultural differences in the eurozone has been greatly underestimated,” he adds. “The only way to collect several countries under one currency is to select similar countries in a union, say, Germany, Holland and Austria. Otherwise it just won't work. ”

He also warned that the US could face a crisis in the bond market if Congress does not present a solution to the budget deficit.

He also said that he would also like to see how Congress solves the problem of budget revenues by abolishing state subsidies through tax breaks.

“The tax policy is for the most part not an increase in expenses, but tax benefits and other so-called“ tax expenses, ”he said. Markets, in theory, should react very little to the abolition of benefits, which will have almost no effect on economic activity. In this way, we could achieve a significant positive impact on the deficit, on the other hand, having a minimal negative impact on the economy. ”

Comments

[ESCANDER]

--- "Instead, Northern Europe began to pay for the surplus consumption of Southern Europe."

Boo ha ha! What did they want?
At the time, they would have paid attention to the Union.
One thing pleases - we are not alone on the same rake.

[Sergh]

Well, everyone is willing to try it. Suddenly a ride, cut down money, and another example. Although to ask, the mind is not enough.

[Vadivak]

Quote: Sergh

“The effect of the difference in cultures in the eurozone has been greatly underestimated,”

Of course, drinking metaxa and dancing sertaki are embedded in the national culture of Greece, plus the persistent contempt for physical labor brought to absolutism by the majority, the climate, the sea, palm trees, olives, entomu contribute, and Greece is not alone in its aspirations. Romania, for example, is the "best" supplier of drug dealers, and the "nimble" Baltic states are insolent and completely stupid during the Soviet era

[Civil]

Yes, okay! This has already happened, one artist gathered Aryans with "Nordic" characters, then all the same climbed to the south and east, BUT first of all to the West.
Alan - read books.

[Uhalus]

The costs of a chaotic, not planned economy. If the European Union does not reorganize to a rigidly planned economy, it will collapse. Parshev had an excellent book on this topic, "Why Russia is not America."

[mitrich]

Greenspan brought the whole world to a crisis with his tricks, this is more a scammer than an analyst.
As for the EU, it is not necessary to pay attention to Greenspan's trepidation, but to the behavior of Germany and Germans. If the Germans are embarrassed to drag the whole of Europe onto their hump (for example, Greek bezdeliki, writing off debts to them), then the European Union will end.

[Kyrgyz]

it is very possible to compare with the USSR the reasons for the collapse of the EEC and the USSR will be the same, and the point is not in money absolutely, but in the fact that the Norwegian and Greek have as much in common as the Latvian and Uzbek
and indeed there are no eternal unions