The legislative triangle of the European Union (Photo credit: Wikipedia)
Dr Alf poses a conundrum.
On balance, and by any objective measure, the EU and the Euro are respectively a failed organisation and a failed and failing currency out of which the Greeks will have to be ejected and following them some of the other PIIG countries like Portugal which are hopelessly un-competitive.
Within Europe, Germany is successful; Finland, Sweden and Denmark are reasonably well-run and the UK is not realizing its export and business potential.
Europe is carrying too many old and unproductive people, and has within it a demographic time-bomb, in the form of a fast growing Muslim population containing radicalized elements who need to be rooted out as a matter of extreme urgency.
Europe outside of Germany, needs to make and sell things that people want outside of its own borders and has to become competitive with South Korea, China and the new MINT countries other than Nigeria which will soon become a failed state.
QE will at best be a temporary fix but in the end Europe has to earn its way out of trouble not spout a lot of hot air.
My own assessment is that the experiment will fail and that Europe will break-up into individual nation states because the straight-jacket of German control under today’s version of Bismark, the “Iron Chancellor”, Angela Merkel is too tight for countries like the UK, which are culturally unable to adjust to the idea that after two World Wars, Germany is in what the Australians like to call the “box seat”.
The 3 million jobs which UK citizens do in Western Europe would be done anyway, so they are not dependent on EU membership as some people think.
In terms of foreign policy, Europe is in thrall to the Americans and is still in denial over ISIS with whom we are now at war.
Financial engineering, sleight of hand and “dressing up ” balance sheets have their place, as Dr Alf in his earlier incarnation knows.
This is not one of those times.