WHY IS THERE A "EURO" CRISIS ?

Ordinary people in the street in "EUROLAND", taxpayers and non-taxpayers, who still pay VAT when they buy anything, cannot understand why there is a crisis concerning the EURO currency.

Politicians in Europe are scratching their heads in order to get a grip on the problem, to find a solution and to fend off criticism. They have real fears for their next re-election !!!

The EURO was introduced as a money in the year 2000, but now only ten years later Greece and about four other countries are bankrupt or verging on bankruptcy.

Why ? That is the real question !!!

The answer is simple. The countries involved have overspent!!! They have lost control of their finances.

Every family knows, like every businessman knows, that if you spend more than your income, then the ultimate result will be bankruptcy !!! When that happens you lose all you have got. Your unpaid creditors also lose.

The ultimate and real question is "Why did this happen"?

The answer is quite clear, even if it hurts. The E U does not control what is going on !!! No one in the E U ever tells a country to stop spending !!! Politicians do not like being unpopular. They prefer to pursue idealogical goals and not be fettered by having to count the cost. Any family or private businessman in such a position is quickly made to realise that without money you cannot go on spending.

What has startled and petrified EU policians so suddenly is that they have realised that Greece is part of their family and that Greece cannot repay its debts !!! Even an austerity program in Greece will not solve the problem. The recent unrest and disturbances in Greece are the proof of the present conundrum. What is worse is what is to come; there are other countries in a similar position to Greece.

Politicians are past masters in the art of massaging the presentation of facts and figures and statistics. Many retire before they are found out !!!

What will happen next ? Taxpayers in all the countries which have the EURO as their currency will have to pay to clear up the Greek debts and possibly others. The only other alternative is to scrap the EURO and return to the previous currencies. That would be an even messier solution !!!

Angela Merkel seems to be blaming in part the banking crisis for the EURO crisis. The banking crisis is another mess which has very little to do with the EURO mess !!! One should not confuse the two.

Likewise the British twin Prime Ministers, David Cameron and Nick Clegg, should not be too complacant about the EURO problems. They can thank Gordon Brown and Tony Blair for not having adopted the EURO currency, but after 13 years of uncontrolled overspending, bankrupt Britain urgently needs first aid and less idealogic E U rules.