Root cause of Euro crisis isn’t bankers

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I HOPE Stephen Jackson doesn’t expect English tax-payers to fund the ‘independent’ Scotland and Wales (Letters 11/11/11)!

But I am delighted he finally recognises the growing irrelevance of his Lib-Dems in British politics and the growing importance of UKIP, who beat them in the EU elections.

Stephen is misguided over “how the European project is being torn apart by capitalism”.

His inference that “bankers’ bonuses” have caused the Euro-crisis couldn’t be further from the truth for without capitalism, Britain and Germany could not be the economic power-houses funding the socialist political ideology of a single European state.

We would be like Castro’s Cuba, devoid of private enterprise job creation, exports and taxable wealth.

Without capitalism, China could not be expected to bail out the Eurozone.

For 14 years, the EU’s own auditors have refused to sign-off the corrupt EU budgets. The collapse of the ‘European project’ is entirely due to the EU politicians’ failure to carry the will of the people (failure to hold referenda and respect the electorate), to exercise ‘due diligence’ over their budgets and by allowing France, Italy and others to fiddle their debt books to meet the Eurozone entry criteria.

That government debt is financed by (now worthless) Government Bonds, in which pension funds and others invest through the banking system.

Greece could never meet the entry criteria but “was heading in the right direction”, so EU politicians allowed Greece to join the Euro, with disastrous consequences.

Just as the ‘one size fits all’ Gold Standard failed as a single currency, the folly of the Euro was self-evident before and during Britain’s failed membership of the ERM (which Labour and Lib-Dems insisted we join).

Only by leaving the ERM in 1992 (at 15 per cent interest rates) did Britain’s economy grow (at 5 per cent interest rates) allowing Brown/Blair to inherit in 1997 our strongest post-war economy - which Gordon Brown promptly destroyed, along with our pension funds, in his socialist campaign against “banker’s bonuses”.

I do hope Father Christmas brings Stephen some history and economics books!

Barry M Jones

Bixley Lane

Beckley