Demise of the euro (From York Press)

Demise of the euro

11:05am Saturday 8th September 2012 in Letters By Reader's letter

THE Euro is on borrowed time. It cannot and must not continue. Even the mighty Germany cannot, and nor should it, save the Euro from failure.

Greece, Ireland and Portugal are bad enough, but now that Spain and Italy are in truth bankrupt, the truth must be faced. The idea that sane sound countries, and The ECB, buy Government bonds from the likes of Spain and Italy is absurd.

The German president of the European Central Bank is right when he says, “We should not underestimate the danger. Central Bank financing can be as addictive as a drug.”

Doctor Jens Weidmann is right when he states that if the ECB took on Government debt, the citizens of Europe would ultimately be liable. 75 per cent of German people are against any more help or time for Greece to mend her chronic illness.

If the ECB suffered losses on these bonds, European Governments would have to replenish the ECB’s reserves.

Surely, if people are living in a true democracy, such a huge socialisation of risk should be decided by parliaments, and not by central banks.

David Quarrie, Lynden Way, Holgate York.