Tuesday, January 17, 2012

Are EU listening?

From Bloomberg:

Sweden Shows Europe How to Cut Debt, Weather the Recession: View
By the Editors: Jan 4, 2012

Sweden faces a difficult year, like every other European economy, but unlike the rest of the European Union, it’s equipped to cope. There are lessons here...

Shortly before Christmas, the Riksbank cut its benchmark rate for the first time since 2009 to 1.75 percent. The NIER predicts further reductions this year in response to a weaker economy and slower inflation. This prospect underscores the seriousness of the situation -- and how valuable it is at such times to have an interest rate to change.

The value of monetary independence is the first and most important Swedish lesson.

Gosh golly gee. When the economy takes a baseball bat to your head, suddenly you can see the there are problems with the whole European Union thing. Gosh golly me.

Please note that every news article that brushed up against the EU on the way to its creation made a point of saying the union would improve economic conditions.

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