Wednesday, April 08, 2009

Is Britain's Quantatitive Easing an exit strategy from the EU?

Incompetent British Governments in succession have sold out their country to the Continentals and in the process signed up to a yearly and ever rising membership fee to a 'zero-return Club' most recently it seems has been solely to purchase ex-PM Tony Blair an aprés Lisbon Treaty EU Presidency slot. The FT today reports that some in the ECB suspect Britain's 25 per cent devaluation of its sterling currency in the past few months might have been made to gain a competitive advantage over their EU trading rivals, read here. My headline to this post has a much more intriguing question. Given the manipulation of the Euro/Sterling exchange rate at the end of last year (about which unsustainable costs I blogged at the time) and considering the impossibility of having the 27 member states instruct the EU Commission to drastically cut the absurd costs and waste of the EU "Could it be that the printing of huge quantities of worthless money to pay our EU bills is perhaps the only way out of what has become an economic dead end for the Country?" My view is that the answer is probably no, for that would require some competent management and gutsy politicians, both of which are presently lacking. Our money still seems to be being trashed for absolutely nothing! Trading advantage from a devalued pound is practically worthless as our manufacturing base has been destroyed due to unbelievable mismanagement and EU membership, while consequent more steeply rising EU contributions become ever more burdensome due to the declining exchange rate which is bound to continue as the printing presses relentlessly churn. Our debts to the EU are calculated in Euros! Those paid and pensioned by the UK State, who presently see themselves as the beneficiaries of Zimbabwe style economics, should glance at the Pension Cut announced by AON for 5000 private sector employees today and wonder whether they really wish to continue to exploit their fellow citizens in this crazy manner!

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