Eurozone Must Go To One Government Europe

[Nemo]

And ultimately world.  Doubts?   Read below.  Some people oppose that idea.  Doubts?  Read all of it below.

Nemo

http://www.telegraph.co.uk/finance/economics/11501280/Eurozone-cant-survive-in-current-form-says-PIMCO.html

Eurozone can't survive in current form, says PIMCO
Single currency area must become a "United States of Europe" in order to secure its future, says manager of world's largest bond fund

By Szu Ping Chan, 28 Mar 2015

The eurozone is "untenable" in its current form and cannot survive unless countries are prepared to cede sovereignty and become a "United States of Europe", the manager of the world's biggest bond fund has warned.

The Pacific Investment Management Company (PIMCO) said that while the bloc was likely to stay together in the medium term, with Greece remaining in the eurozone, the single currency could not survive if countries did not move closer together.

Persistently weak growth in the eurozone had led to voter unrest and the rise of populist parties such as Podemos in Spain, Syriza in Greece, and Front National in France, said PIMCO managing directors Andrew Bosomworth and Mike Amey.

"The lesson from history is that the status quo we have now is not a tenable structure," said Mr Bosomworth. "There's no historical precedent that this sort of structure, which is centralised monetary policy, decentralised fiscal policy, can last over multiple decades."

PIMCO said the rise of populist parties demonstrated how uneasy some people had become about the euro.

"[Persistently low growth] manifests itself in a lack of support in the common currency, so then it leads to the rise to power of political parties that want to end it," said Mr Bosomworth.

"That's what we seen in the last few years. [Populist parties have] risen from zero to be a considerable force. In Greece's case to form a government.

'This means we're in a critical situation, because you cannot just plaster over these people's concerns, there needs to be a political response as well, which involves addressing the question: what is the ultimate future of the monetary union?"

PIMCO used the example of the Latin and Scandinavian unions in the 19th century, which lasted an average of 50 years before breaking up, to illustrate how monetary unions were incompatible with sovereignty.

"You need to reach some sort of political agreement about how to share fiscal resources around the zone. We're a long, long, long way from designing that and getting the political backing for it," he said.

"So while you're waiting for that and you've got low growth, and high unemployment, you run the risk of letting these anti-euro parties to the forefront."

"Will we get the United States of Europe? It's not impossible, but Europe could also spend many decades in a hybrid form of a political and fiscal federation. While there might not be one government, one passport and one army, we could be moving closer towards that - but not yet."

Mario Monti, the former prime minister of Italy, said last week that France was Europe's "big problem" because anti-EU sentiment there threatened to destroy the bloc's Franco-German axis.

PIMCO said France's inflexible labour market meant it was "lagging behind" other countries such as Spain and Ireland, which had implemented structural reforms.

Mr Bosomworth, who is head of portfolio management in Germany, said there was too much at stake for the eurozone to force Greece out. "It's a bit like nuclear warfare. Actually doing it is so disastrous that you don't," he said.

However, he said Berlin was becoming increasingly impatient with Athens.

"The mood music in Germany is that people are fed up with the ongoing negotiations and the way that the new government comes across in them. This has reduced the solidarity that was there in 2010."

Mr Amey said the European Central Bank's €60bn (£43.4bn) a month bond buying programme was likely to push the euro to parity against the dollar, possibly by the end of this year.

PIMCO expects the US Federal Reserve to begin raising interest rates in September.

"We're pretty comfortable that the euro could trade at parity with the dollar and potentially trade through because of the relative points of the business cycle and the stance of monetary policy in both regions," he said.

QE in the eurozone is also expected to keep driving down bond yields in the 19-nation bloc, turning excess reserves into a "hot potato" and pushing investors towards more risky investments.

"There are three major implications as people reallocate away from negative yields. They will go into longer duration assets that still deliver a positive yield - that flattens the yield curve. They will move into higher risk assets, such as real estate, and stocks, and they go out of the currency, which weakens the euro," said Mr Bosomworth.

[JohnyMac]

New World Order or European One World Order.

Thinking outside the box I can see the globe eventually going to maybe a half a dozen One Work Orders. It is inevitable. 

Post WW II, we have moved to global financial dependence slowly until 2000 when it isn't so slow anymore. It is becoming accelerated. The days of multiple sovereign nations is quickly becoming a thing of the past. I would not be a bit surprised to see maybe only a dozen nations around the globe by mid century. 

> Mexico, USA Canada Ala United States of North America
> Europe, West/East/North United States of Europe
> Middle East, 'Skans you get the idea.....
> North Africa
> South Africa
> Pacific (Australia, NZ, the islands, Japan)
> China
> SE Asia
> Russia, Ukraine maybe the 'skans
> Central & South America
> ETC

I do not see these new nations/states under one NWO control though.