May 27, 2010

The EU is at it again, the march of ever closer union continues

The EU is in a massive crisis. Just as all those nasty EUsceptics said would happen before the introduction of the Euro. The single currency is not working because it lacks a single financial government capable of transfering money around the zone to try and counter act the simple fact that it never was, and never will be, a good currency area. As all those nasty EUsceptics explained would be needed before the introduction of the Euro. So the solution? Create a transnational financial government with tax raising powers at the EU level and oversight over the national governments. Just as all those nasty EUsceptics warned would be the next step in the EU's quest to become a supranational government over the entire continent.

The first proposed EU tax is one on financial transactions. The EU's response to what started out as a liquidity crisis is a measure that will reduce liquidity. The hedge funds where not major players in the crisis, and if anything their short selling helped to reduce the bubble and so the bust, so the EU takes aim at them because they are the current political bogeymen. Oh, and guess what these measures will affect teh UK in a uniquely bad way due to the size of our financial industry, the only major industry we have left and the only thing that is going to be able to dig the country out from under all of Labour's debt. So the city of London gets screwed, which will please the German and French governments, the EU gets some direct tax raising powers, which will please the Eurocrats, and the hedge funds will head for switzerland and the carrabien, which will probably mean they get a better quality of life. The main looser? The UK, as usual.


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