I’m a bit behind on listening to my Tom Keene podcasts. On March 17th he and Ken Prewitt interviewed Economist (*cough*) Paul Donovan. When asked about the possibility of the breakup of the European monetary union, he noted that the current weakness is due to the fact that the union can only exercise monetary policy and not fiscal policy. His solution? …

Having a monetary union without a fiscal union doesn’t really work in the long term […] What you do is you have some kind of central tax and spending mechanism which takes tax revenues from faster growing parts of the monetary union, and spends those revenues directly in the weak parts of the monetary union.
– UBS Economist Paul Donovan on Bloomberg Surveillance, March 17, 2010

By the end of the interview he was quoted as saying that the German people shouldn’t be upset about bailing out the Greek pensioners. The mind-numbing lunacy of the socialist mindset is stupefying.