Wednesday, December 14, 2011

Richard Werner on the euro

Today on BBC Radio World Service Prof Werner reiterates what he has been saying for some time: Countries under pressure such as Greece, Italy, Spain need not get funds at 7% from the bond market when their old bonds expire. The commercial banks of each these countries should lend their own governments funds at 3.5%, by creating the credit for them.  Governments need not enter the bond market for funds, the mechanism is already there to avoid this more expensive option.

Werner says that the economic situation is getting muddled with a quite separate political agenda: to advance the power of the EU state. He says that no country in the EU will go bust if the ECB doesn't want it to go bust.
posted by Charles Bazlinton.    

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