Written by John Lounsbury
Paul Buitink, Chairman of the foundation Full Reserve, interviewed Steve Keen, addressing the quest: What is wrong with the euro? Prof. Keen has view quite different from that of Yanis Varoufakis who was featured in this column recently.
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From YouTube:
Paul Buitink interviews independent rebel economist Steve Keen about the fundamental flaws of the euro. Unlike Yanis Varoufakis Steve doesn’t believe it can be democratized. The only way out is to snap it. Even for Italy it would be better, and Italy could be the next trigger for a crisis.
The problem with the euro is a lack of proper democracy and the fact that eurozone members are not monetary sovereign. Banks create too much money but the government can’t step in when the eventual slump comes. Steve says the euro is set up as such due to Germany’s obsession with low inflation. The high approval rate for the euro is only because of the perceived convenience it brings.
Furthermore they talk about Greece’s woes, parallel payment systems, the fall out of a euro crash, brexit and the yellow vest movement that delights Steve.
Watch for the punchline (actually one of many) when Steve says that ever higher debt for capital has been paid for by reduced income share for labor, thus leading to increased income inequality.
Source: YouTube
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