Rebuild Europe’s Backbone
This is the cold-shower treatment that many Europeans don’t want to accept, but the continent is fast approaching the fiscal point of no return. This option presents a wonderful opportunity for those countries to win back the rest of the Western world, which holds the jaded opinion that Europe has lost the backbone that once helped it cope with the crisis it faced through the 1940s. It is what it is.
If the effort is properly executed, several major positives will result:
- A widespread and mutual feeling of getting a fresh start is just what Europe needs to feel it has some breathing room.
- Germany comes out smelling like a rose in its role as primary backer, further vindicating that country from its sins of past wars.
- The socialist model so vilified by the rest of the hard-working free world gets a redo, characterized by higher retirement age levels, longer hourly work weeks and lower cost-of-living increases — without which there should be no deal.
For lack of a better metaphor, Europe needs to go through rehab. With a monumental collective refinancing project that encompasses and takes on the full scope of the sovereign debt crisis, our brothers and sisters across the pond can pull themselves out of what otherwise is a flat spin into insolvency and, ultimately, anarchy.
I firmly believe that after three years of patchwork fixes by the various measures employed, there’s no Plan B that will prevent failure and the eventual spread of systemic contagion. One hopes that Merkel, the leaders of all the EU nations and the ECB will take the extra steps necessary to take advantage of the once-in-a-lifetime opportunity of historically low interest rates to issue debt, get guarantees in writing from all parties and trust that the neighbors they want to embrace as one union seriously take them up on their offer.
The time for action on a Eurobond refinancing program is now.
Bryan Perry is the editor of Cash Machine, a weekly financial advisory service that focuses on high-yield investments that provide cash payments month after month—no matter what happens in the stock market and global economy. His brand-new report, 9 High-Yield Dividend Superstars Every Investor Must Own Now, details the biggest threats to your wealth today, as well as reveals four bulletproof sectors that will continue to outperform. To access your FREE copy, go here now.