The Nobel Peace Prize for the most Powerful Protagonist of our Times

Date: August 30, 2011 | Author: Mark Winter

 

 

We are currently witnessing a clash of different economical cultures on both sides of the Atlantic, both in Europe and the USA. There's the old continent, which is somehow always a little envious and admires America for the innovative spirit and the optimism of the American people. Then there is also some criticism of America for its greedy attitude and and its unbridled extravagance. In return, the Americans often look suspicious to the old continent, but admire the rich culture. However, they often suspect Europe for the backwardness in many fields and also the unwillingness of Europeans to cut off old habits and their reluctance to walk a new ways. This new way that Europe has to go is to try more integration of Europe and finally to jump over the shadow of national egoism. Because in the end, every citizen can benefit from more integration in Europe; and every European should know that we are opposed to the Americans at a crossroad, and that we now have to decide for more integration or for a breakup of Europe. The latter would be, taking Europe's history into account, absolutely not recommended. First there is the dispute between the French and German economists regarding the independence of the ECB. The French are naturally more in favor of a more loose monetary policy whereas the Germans are more like stability fetishists. But just let's imagine what would have happened if the Fed chairman of the most important economic region, the United States have had not the possibility of a "Quantitative easing".

1. The interest rates in the U.S. would have risen to 15% or 20%, and the U.S. had experienced the worst economic crisis since 1929, with mass unemployment and a great depression
2. The global economy and major economic areas such as Europe, Asia and Latin America would have been affected and it would have initiated probably not only currency wars between the countries.
3. The euro zone would have been dissolved in a day and the euro would have been broken up.
4. Mrs. Merkel and Mr Schäuble and the moderate politicians of other countries would have been driven out of office by right-or left-wing populist parties.

Therefore in principle, there are no alternatives to the QE policy of the U.S. Federal Reserve and the ECB has to follow this monetary policy, unless the German political economist and stability fetishists wish to have a Europe like it was in 1930 with massive unemployment, famine and great depression. I therefore propose that the two currently most powerful people in the largest economies should be awarded the Nobel Peace Prize, because without their decisive action the world would have fallen into the abyss that Europe might still be facing. The ECB President Trichet leaves office in the most a difficult times but the new Italian Euro Chief Draghi might the right ECB president at the right time, as the Italians did not take the stability of the old Lira too seriously. After all a soft Euro would still be better than a deteriorating Europe that falls into an economic insignificance.