by Bill Mitchell
…..The bottom line is that they have managed to come up with another flawed plan – a typical European ‘compromise’ that Germany crafts to suit its own austerity obsessions – where they have set up joint supervision and resolution but no resources for the Member States to defend their own banks (that is, no central guarantees) and no system of deposit insurance.
Who would deposit their savings in any Eurozone bank? The evidence is clear – there is a massive movement in deposits from south to north at present as people seek what they think of as safer havens……
…..And with all that, many in Britain still think staying in this dysfunctional mess which is slowly disintegrating is a desirable outcome.
Brexit, as it is being called, is the only outcome for Britain, which makes sense.
All the concessions that Brussels are making to Britain just to keep it inside are, in fact, working in the opposite direction of where they have to go to start making the common currency work. More Europe not less is the direction they should traverse, although Germany will never let the Member States go there…..