Central Banker Says Euro Zone Structure Is ‘Unsustainable’

[alp227]

Source: NY Times

The president of the European Central Bank, Mario Draghi, warned Thursday that the structure of the euro currency union had become “unsustainable” and criticized political leaders who he said had been slow to respond to a regional debt crisis now well into its third year.

On the desperation scale, the plea by Mario Draghi to European lawmakers Thursday was not on the same level as the genuflection to congressional leaders in 2008 by the U.S. Treasury secretary at the time, Henry M. Paulson Jr., who was begging them to approve a huge bank bailout.

But the note of frustration and urgency in Mr. Draghi’s voice made clear that he was aware of the problems in the euro zone that he said only the member nations’ politicians could now solve.

There have been many spikes in the euro zone’s crisis fever in the past, of course, with a bailout here or a stopgap measure there seeming to calm things for a while. But this time, Europe may have reached a moment when the currency union’s survival depends on a powerful, convincing response.

Read more: http://www.nytimes.com/2012/06/01/business/global/greek-banks-regain-access-to-european-central-bank-loans.html?pagewanted=all

[onehandle]

1. I hope the EU holds together.

We have shitloads of red states that do not pull their weight and suck on the goverment teat like there's no tomorrow, and yet we seem to hold up fairly well.

[Art_from_Ark]

2. Having the world's main reserve currency helps the US

It also helps to be one sovereign nation, rather than a couple dozen nations all trying to act in economic concert.

[newthinking]

3. The bias is just brazen. They use far softer tones on the US.. wonder why?

The whole EU crisis is around two things you never hear in the media:

Tanking the alternative currency and
Europe does not have the power the US has, so while the predators held back on collecting against derivitives and such when our economy fell, they went straight to the throat for Europe.

The entire world financial system is a ponsi scheme, the only difference between our economic health and Europes is we were able to print all the money we wanted and still use our power and influence with the oligrachs to keep the dollar's value up.