JP Morgan to eurozone: Get rid of anti-fascist constitutions

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PostSun Jun 23, 2013 12:32 pm » by Tjahzi


At times, I do marvel how antiseptic, bland even, that the language of the most wretchedly villainous documents can be.

Last week, the European economic research team with JP Morgan, the global financial giant, put out a 16-page paper on the state of play of euro area adjustment. This involved a totting up of what work has been done so far and what work has yet to be done in terms of sovereign, household and bank deleveraging; structural reform (reducing labour costs, making it easier to fire workers, privatisation, deregulation, liberalising ‘protected’ industries, etc.); and national political reform.

The takeaway in the small amount of coverage that I’ve seen of the paper was that its authors say the eurozone is about halfway through its period of adjustment, so austerity is still likely to be a feature of the landscape “for a very extended period.”

The bankers’ analysis probably otherwise received little attention because it is a bit ‘dog bites man‘: Big Bank Predicts Many More Years of Austerity. It’s not really as if anyone was expecting austerity to disappear any time soon, however much EU-IMF programme countries have been offered a relaxation of debt reduction commitments in return for ramping up the pace of structural adjustment.

The lack of coverage is a bit of a shame, because it’s the first public document I’ve come across where the authors are frank that the problem is not just a question of fiscal rectitude and boosting competitiveness, but that there is also an excess of democracy in some European countries that needs to be trimmed.

“In the early days of the crisis, it was thought that these national legacy problems were largely economic: over-levered sovereigns, banks and households, internal real exchange rate misalignments, and structural rigidities. But, over time it has become clear that there are also national legacy problems of a political nature. The constitutions and political settlements in the southern periphery, put in place in the aftermath of the fall of fascism, have a number of features which appear to be unsuited to further integration in the region. When German politicians and policymakers talk of a decade-long process of adjustment, they likely have in mind the need for both economic and political reform.” [Emphasis added]


continued: http://blogs.euobserver.com/phillips/2013/06/07/jp-morgan-to-eurozone-periphery-get-rid-of-your-pinko-anti-fascist-constitutions/

yes, indeed we have to much democracy lol

orginal paper:

https://random-thoughts-on-investments.googlegroups.com/attach/243626285e18f68b/JPM-the-euro-area-adjustment--about-halfway-there.pdf?pli=1&part=7&gsc=XCHmHAoAAAA2fIMXNd_YBQLiAOpLO7kN
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PostSun Jun 23, 2013 1:03 pm » by Middleman


Far be it from me to defend the self serving musings of banksters, but it seems what they're saying here is what many people with differing perspectives are saying, and what has been demonstrated quite clearly by the ongoing Eurozone crisis .

You can't have a monetary union without also having a significant political integration of some kind.

What that ends up looking like is anybodies guess (hence the German reference to decades of reform), but the current configuration doesn't work for anyone.

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PostSun Jun 23, 2013 7:32 pm » by Tjahzi


Middleman wrote:Far be it from me to defend the self serving musings of banksters, but it seems what they're saying here is what many people with differing perspectives are saying, and what has been demonstrated quite clearly by the ongoing Eurozone crisis .

You can't have a monetary union without also having a significant political integration of some kind.

What that ends up looking like is anybodies guess (hence the German reference to decades of reform), but the current configuration doesn't work for anyone.


true that!
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