In my judgment the authorities have a three months’ window during which they could still correct their mistakes and reverse the current trends. By the authorities I mean mainly the German government and the Bundesbank because in a crisis the creditors are in the driver’s seat and nothing can be done without German support.
In A Brilliant New Speech, George Soros Reveals The Exact Moment That Angela Merkel Started The Euro Crisis
Joe Weisenthal
Business Insider
6/2/2012
George Soros delivered a speech today in Trento, Italy today on the Eurozone crisis and it’s an absolute dynamo.
You really ought to read the whole speech, which is on his personal webpage, as it starts off with an overview of his economic theories (which revolve around the idea that markets are deeply imperfect and prone to turn into bubbles based on human fallability and lack of knowledge) and then nicely explains how all of this explains the current crisis in Europe.
What’s fantastic is that he really gets it from all angles.
This is a really killer characterization of the Eurozone:
I contend that the European Union itself is like a bubble. In the boom phase the EU was what the psychoanalyst David Tuckett calls a “fantastic object” – unreal but immensely attractive. The EU was the embodiment of an open society –an association of nations founded on the principles of democracy, human rights, and rule of law in which no nation or nationality would have a dominant position.
The process of integration was spearheaded by a small group of far sighted statesmen who practiced what Karl Popper called piecemeal social engineering. They recognized that perfection is unattainable; so they set limited objectives and firm timelines and then mobilized the political will for a small step forward, knowing full well that when they achieved it, its inadequacy would become apparent and require a further step. The process fed on its own success, very much like a financial bubble. That is how the Coal and Steel Community was gradually transformed into the European Union, step by step.
Germany used to be in the forefront of the effort. When the Soviet empire started to disintegrate, Germany’s leaders realized that reunification was possible only in the context of a more united Europe and they were willing to make considerable sacrifices to achieve it. When it came to bargaining they were willing to contribute a little more and take a little less than the others, thereby facilitating agreement. At that time, German statesmen used to assert that Germany has no independent foreign policy, only a European one.
And then came the moment that German, formerly at the forefront of a federated Europe, stopped the progress dead in its tracks…
The article continues at Business Insider.
Also at the site, Why People are Going Nuts Over the New George Soros Speech on Europe with graphic
Related: “Yes” vote in Ireland paves way for EU deal on bank debt
…Mr Kenny said he raised the issue with German Chancellor Angela Merkel when he rang her to confirm that the treaty had been passed.
Ms Merkel said that Ireland deserved “appreciation and respect” for staying the course on the additional cuts and taxes imposed under the terms of the bailout.
She said: “The result shows that the Irish population continues to support the demanding consolidation and reform agenda of the Irish Government.
This commands – particularly because of the ensuing cuts and hardships – special appreciation and respect.”…
Update: George Soros Provides A Glimpse Into How Political Power Is Concentrated at Ace of Spades HQ
Soros gave a speech recently that’s gotten some coverage because he blames Germany for try to kill the Euro Zone and predicting if things don’t change in the next 3 months, the Euro will be dead.
I think the more interesting part is where he lets the mask down and demonstrates how trusting “the experts” can lead to disasters like this….
Read the whole thing.
Update 2: Glenn Beck: Soros says Euro has three months left until collapse
Glenn has demonstrated how George Soros uses his influence and the media to try and sway the outcome – just like he did with the British pound back in 1992. He’s at it again, hitting the press to predict the end of the Euro. Is that what Soros is after?…
Read the rest and watch the video at GBTV.
CAJ note: Various sites have noted the speech was scrubbed from GeorgeSoros.com. We found the entire text at Spero Forum.
