Thursday, September 06, 2012

Richard Werner's 2-part Euro solution gathers pace

Richard Werner's 2-part Euro solution, as mentioned on this blog on Aug 2nd & 16th and in  The Daily Telegraph 16th August has been taken up in the heart of Euro crisis land - Greece itself. LINK: Video interview in English, by Alina Sarantis, Greece's equivalent to Gillian Tett. 

Intro as on the website:  A less painful solution to the debt crisis proposed by of, Professor of International Banking at the University of Southampton, Richard Werner. The proposal involves the transfer of non-performing assets of European banks to the European Central Bank and funding of government contracts through borrowing from banks rather than bonds.

Professor Werner argues that the proposed solution has zero cost to the taxpayer and will also lead to growth by increasing the money supply, but also to reduce the total debt.

At the same time, blame for the crisis in the eurozone the ECB allowed the creation of huge debt bubble, while asserting that the economic plan implemented by the Brussels 'make no sense' but the ultimate aim is to promote EU policy objectives through economic pressure.

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