“Speaking at The Hay Literary Festival in Wales Lord King told the audience that the Euro project had been a ‘reckless mistake’ which had left countries like Greece facing conditions far worse than The Great Depression of the 1930s.
He argued that Britain would have been in a much worse position had it joined the monetary union, although pointed out that it could have led to the collapse of the Euro, which would have left Europe in a better position today.
“The fact is that with the best will in the world it was a terrible, also a reckless mistake to start monetary union. Because what happened in the next ten years was predictable,” he said.
“Countries that hadn’t fully adjusted to the degree of monetary discipline of Germany said, ‘this is great, our interest rates have fallen to great low levels’ and they didn’t adjust their wage and price inflation to the same level as Germany.
“And as a result, those countries which needed to rein in spending, spent a lot more.
“What we’re seeing in Greece now I never thought I would see this. The position in Greece today is worse than what it was in the US at the time of the great depression and it’s going to get even worse.
“They should have left the monetary union. And ironically the German finance minister would probably have agreed with that but for political reasons they decided to stay. I find it almost impossible that they can stay in the Euro.”
Speaking about where the British economy would be had we joined the Euro he added: “One line it would have been a terrible mistake for the UK to join. We would undoubtedly be worse off than we are today. It would have been a mistake to join.
“The other way of thinking about it, is to say if we had joined it would have broken up by now, because I think it would have been very difficult for the UK to stomach the consequences of unemployment that would have followed the joining of the foreign exchange rate.
“The chances are UK politics would have led us to leave Europe and then other countries might have left as well and if that had happened it’s possible that the whole European economy might have been better off.
“If I am being honest I am very very glad we didn’t join.”
I give you the source, which is a telegraph article, up to ten articles per month you can read them for free; now if you have to choose which ones to pick up to read, read this one, not only for the printed content, but for the chilling video that I couldn’t share for technical reasons. Watch it and exit the EU, please. I don’t know why Lord King doesn’t say plainly that he wants out, beyond the tentative, polite words at the beginning of the article, for me it is quite clear. Experts say that Italy and Spain are heading towards the same direction.