Monday, May 7, 2012

Where Is The End Of The Tunnel For Europe's Most Challenged

I've certainly become sensitive to the course of evidence reported upon on this space. Evidence of such nature requires one to step back and take a second or third look. Yet, from European to Brazilian conditions, the numbers are presented. From Germany's numbers to Euro Area numbers, again those numbers are presented. Looking at India, further numbers must be considered. China, for itself, has been very much reported upon in the media and the convention is whether it can avoid a hard landing.

Election results in Europe are pointing to a rejection of austerity. Newly elected French President Hallande himself mentioned today a movement across Europe of such a nature.

European election results need time for dust to settle. Greek results, given a backdrop of previous electorate reaction concerns all.

Still, as a union of nations, economically European countries are stronger than independent components. This is the strength of any proposition. Should countries at this point splinter off, even in a bankruptcy situation, they will have to inevitably export, one day need credit, and eventually need banks to lend to the consumer and business.

A withdrawal of countries from the Euro is a prospect to consider, but when the sobriety of the proposition sets in, especially given current economic circumstances...can any one country see their economy fall backwards 100 years.....or 25 years.

Propositions now are girded by the EU's world placement in competition for markets. The EU has negotiated and developed susbstantial market outlets, to the point where abandoning such negotiated chains of trade would be an erasing of the slate for any one country.

Hardship is among austerity, loss of trade partners, and in the end loss of liquidity or cash flow in a banking system. Breaking away from the euro holds the same propositions, only more assured.

Lots of thought, consideration and perhaps maybe a balance....But it must be a balance among the above forces. Such a balancing must have a hope, for countries to see a light in the tunnel of austerity. Even then, the countries under the most austerity are the least productive. What are you going to do.....promise to sell the products of the least efficient countries' the most.

Where could the end of that tunnel be. Currently, the most challenged in the Euro Area are also the least to see a light at the end of austerity.

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