Today I want to share a link to a fascinating interview with Ambrose Evans-Pritchard, the international business editor for the Daily Telegraph in England, about the European sovereign debt crisis (the crisis relating to the debt of certain European governments like Greece, Ireland, Spain, Portugal, etc). The interview is well worth the forty-minutes required to listen to it because Ambrose is perhaps the best economics reporter in the world and he helps explain why sovereign debt crisis might determine the future course of Europe and the European Union (E.U.) in the interview. Here is a brief summary of what Ambrose discusses in the interview:
- Ambrose discusses the problems of the E.U. and the risk for tremendous economic, financial, social, and political instability shortly throughout Europe and perhaps eventually the world.
- Ambrose believes this is the key point in history when we learn whether the E.U. will achieve fiscal integration, a key step to political integration, as it tries to deal with the sovereign debt crisis or completely implode as E.U. members grow tired of the E.U. arrangement.
- Ambrose also discusses the potential for the E.U. sovereign debt crisis to transform into something that threatens the stability of the entire global financial system if European leaders cannot stop it.
- Ambrose sees a tremendous money printing campaign by the European Central Bank as potentially the way to resolve the European sovereign debt crisis. However, the problem Ambrose points out is that Germany, the most important country in the E.U., would be extremely reluctant to allow this since Germans are afraid of a repeat of tbe Weimar hyperinflation.
By the end of the interview you should have a good idea of why the European sovereign debt crisis is taking place and why it could determine the future course of Europe and the E.U. You can listen to the interview at the following link
