The clash between the political elites and the people
The collapse of the Euro came still another step nearer on Thursday of last week when the European Central Bank raised interest rates by 0.25%, its second such rise this year.
The rise helps the German and other Northern European Eurozone economies by preventing 'overheating' but it will strike a further blow to the already suffering Southern European eurozone economies such as Greece, Portugal, Spain and Italy, by pushing them nearer to defaulting on their colossal debts.
As the British National Party has repeatedly pointed out over the past five years, the Euro is an economic impossibility. That's because a single currency can only possibly work in a single economy with a single fiscal and monetary policy - and all that needs a single government!
Different economies trapped in a single currency have different, in fact now diametrically opposite, fiscal and monetary needs. Germany which has a growing economy, with manufacturing orders rising another 1.8% in June, needs a higher interest rate to curb inflation.
Greece and Portugal, on the other hand, with economies which are contracting, need lower interest rates to stimulate demand and investment and get things moving again. The only way some sort of common currency can work is if more power is given to a single governing body.
The Old Euro is failing because one currency can't work for 17 still basically independent nations. For a New Euro to prosper, such independence must be brought to an end. There would have to be central European Union control of every aspect of economic policy throughout the Eurozone.
Brussels would have to impose taxes, determine public spending, and make laws on and exert complete control over every aspect of economic or fiscal matters, for all the countries signing up to the new Euro.
The growing support for nationalist parties in every country in the EU shows that the European peoples will not accept the loss of their independence without a fight. Like the USSR and its Empire in 1989, the European Union is now approaching its final crisis - the clash between political elites lusting for transnational power and ordinary people seeking to win back their freedom.
