This is not good news by any stretch. But it is a prudent step. My guess, however, is it isn’t being well received in Brussels.
The Nordic state is battening down the hatches for a full-blown currency crisis as tensions in the eurozone mount and has said it will not tolerate further bail-out creep or fiscal union by stealth.
“We have to face openly the possibility of a euro-break up,” said Erkki Tuomioja, the country’s veteran foreign minister and a member of the Social Democratic Party, one of six that make up the country’s coalition government.
“It is not something that anybody — even the True Finns [eurosceptic party] — are advocating in Finland, let alone the government. But we have to be prepared,” he told The Daily Telegraph.
“Our officials, like everybody else and like every general staff, have some sort of operational plan for any eventuality.”
We’ve talked about the cascade effect many times before. What normally causes that effect is some sort of tipping point. So far, it seems, Europe has avoided that tipping point. One has to wonder if it might be Finland that tips the scales. To this point, the subject of the Euro-zone breakup has been pretty much tip-toed around.
Now you have a country that is actively preparing for it and making those preparations public. Note too what they’re saying – Finland has said it “will not tolerate further bail-out creep or fiscal union by stealth.”
That’s pretty final.
Additionally, if such a plan should be put forward:
Like other member states, Finland has a veto that could be used to block any new bail-out measures. However, unlike some states, its parliament would have to approve each future measure of the eurozone rescue, including a full bail-out of Spain.
And, as you read the article, you’ll see that’s not very likely to happen.
So … hold on. My guess is the ride in Europe is about to encounter severe turbulence.
This is just the theater of the absurd masquerading as government:
With the approval of the Obama administration, an electric car company that received a $529 million federal government loan guarantee is assembling its first line of cars in Finland, saying it could not find a facility in the United States capable of doing the work.
Vice President Joseph Biden heralded the Energy Department’s $529 million loan to the start-up electric car company called Fisker as a bright new path to thousands of American manufacturing jobs. But two years after the loan was announced, the job of assembling the flashy electric Fisker Karma sports car has been outsourced to Finland.
"There was no contract manufacturer in the U.S. that could actually produce our vehicle," the car company’s founder and namesake told ABC News. "They don’t exist here."
That’s just absurd. Half a billion dollars of taxpayer guaranteed money to a company in Finland with no guarantee that the coal powered cars they’re building would be built here and create jobs here.
Nope, according to the company’s founder, “no contract manufacturer in the US could actually produce the vehicle”.
We’re finding out about that now? They didn’t know that before they approved the loan guarantees?
Yet another example of government picking winners and losers with your money. And, as usual, doing a dismal job. They’d like you to think they do due diligence on these sorts of deals, but example after example point to utter incompetence, not to mention the fact that government shouldn’t be doing this in the first place.
Dumb and dumber at work with your tax dollars.
Don’t you feel all warm and fuzzy inside?
Oh … and it will be the “Volkswagon” of electric cars made for the little people:
Fisker is more than a year behind rolling out its $97,000 luxury vehicle bankrolled in part with DOE money.