Words of a Euro Doomsayer Have New Resonance – NYTimes.com

Will Bernard Connolly become the Nouriel Roubini of the euro crisis?

The current policy of lending plus austerity will lead to social unrest,” Mr. Connolly told investors and policy makers at a conference held this spring in Los Angeles by the Milken Institute, arguing the case that Greece, Italy, Portugal and Spain could not simply cut their way to recovery.“And one should not forget that of the four countries we are talking about, all have had civil wars, fascist dictatorships and revolutions. That is history,” he concluded, his voice rising above the chortles and gasps coming from the audience and the Europeans on his panel. “And that is the future if this malignant lunacy of monetary union is pursued and crushes these countries into the ground.”

via Words of a Euro Doomsayer Have New Resonance – NYTimes.com.

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2 thoughts on “Words of a Euro Doomsayer Have New Resonance – NYTimes.com

  1. lrav says:

    I think it is interesting how with a lot of the economic crises happening in the world today there has been someone who predicted the crisis. With the worsening Euro crisis, I wonder how it is going to be fixed? Greece has recently imposed new property taxes that are much higher than their citizens can pay. If budget cuts and higher taxes aren’t the way to fix these countries’ failing economies then what is?

    http://www.nytimes.com/2011/11/28/world/europe/euro-zone-leaders-weigh-new-budget-rules.html?_r=1&scp=3&sq=euro&st=cse

    http://www.nytimes.com/2011/11/28/world/europe/greeks-balk-at-paying-new-property-tax.html?scp=1&sq=greek%20property%20tax&st=Search

  2. Mr. Connolly has valid points, but I think his views are perhaps a little exaggerated. Of course austerity and lending will lead to social unrest–it already has. All last year, we read stories of Greeks and Italians and Portuguese taking to the streets in protest of new, strict austerity measures. And even countries like the UK who weren’t suffering quite so badly, protests occurred when the Euro zone realized it had to tighten its belt. However, his point about the countries in debt having fascist dictators in the past? I think that’s a little irrelevant. My country, Germany, also had probably the most famous fascist dictator of all time, and it’s now the powerhouse of the Euro zone and the one doing the lending to these suffering countries. Just today, the Euro zone ministers have agreed to increase the size of the bailout fund. (http://www.reuters.com/article/2011/11/29/eurozone-imf-resources-idUSL5E7MT6EX20111129) Maybe I’m biased, but I personally choose to believe in the power of the Euro. it has, undeniably, had its backlash on the suffering countries, but I don’t think its time is over yet. I think Europe can yet pull itself out of the hole.

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