The Eurozone Debt Crisis Explained

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OPINION: Eurozone Crisis - my solution

I guess I'd best come clean... I'm not an economist! I think my bank manager would go into shock at the idea of me offering financial advice to anyone else, let alone a complete continent!

Today, yet again, we have a crisis meeting of governments in Brussels to try to sort out the latest hiatus in debt. This time it's not only Greece but also Italy that are cussing concerns.

How many times will this happen before Europe's governments accept that something more substantial needs to be done? How much more tinkering will we have without actually coming up with a proper solution?

Surely we need a cure, not just a band aid?

There are very few countries, if any, that aren't in debt to some extent. The situation is a nonsense. The fear is that today's "comprehensive solution" will only solve things for a few weeks, maybe into the new year.

I have a radical solution I'd like to suggest. It requires governments to take back control of international finances and put banks back into a support role.

My solution:

* All repayments need to be suspended. Stopped would be a better word.

* No more interest should be charged.

* Countries have what they have.

We then look at the matter internationally. Let's stop the nonsense of the Little Englanders (and probably Kleine Deutschen and Peu le Français) who only see national interest. That is the politics of the past. It is no longer 1939!

I'd also outlaw inflation - I've never seen the point or value of it. Things are worth what they are. Is there any benefit to inflation?

Nations should then be given 12 months to devise a truly international, co-operative fiscal policy. An international economic policy that works for everyone's interest, that will mean that we don't get in this mess again.

It might be that, alongside the international fiscal policy, we do have a single-currency - I see that as a label and not essential to begin with - but we agree that x number of pounds is worth x number of dollars is worth x number of Euros, etc. We outlaw currency trading and exchanges that drive up and down currencies.

I expect this would require the immediate nationalisation (internationalisation?) of all banks.

Ideally, this would be a global agreement - all countries involved.

Third World Debt would be cancelled - so many problems in the Third World are caused by interest repayments - and there would be funds transferred from wealthier nations to less worthy on a per capita basis.

If I were President of the World, a position I'm happy to accept we're it to be offered, I'd take this further. I would also suspend all business debt repayments and all personal debt repayments - and cancel them.

Let's start again - wipe the slate clean.

Money is a notional thing. It is worth whatever we say it's worth. Debt is, similarly, a concept that can cause hardship and chaos and, therefore, needs to be eliminated.

It's an extreme solution and, sadly, there are too many idiots, xenophobic and greedy interests involved in finding a solution that will result in this whole mess rumbling on for months, years, decades.

Let's start again. Let's think differently.

OPINION: The Occupy movement - are they going for the right targets?

A few weeks ago, when the Occupy Wall Street protests began in New York, I felt a sympathy for their cause - the anger at corporate greed, the world financial crisis and, the increasingly pantomime villains, the bankers.

This weekend the movement has moved its protests beyond lower Manhattan and had "occupations" in many of the world's major cities - certainly in most of the world's financial centres. On the whole, these protests were peaceful and well organised (Rome being the main exception). In the City of London the protestors "occupied" the London Stock Exchange. well, no, they didn't they stood outside the London Stock Exchange to shout slogans and wave banners on a day that the Exchange is closed. Indeed, as is the case most Saturdays, very little of the Square Mile that makes up the City of London was open for business. The chances of a single banker hearing the chants or reading the banners was minimal unless they happened to watch the television news on Saturday evening.

So, having rather shot themselves in the foot with a silly and pointless attention-seeking protest, #OccupyLSX decided they need to camp out for the big, to continue their protest today. It wasn't long before the organisers announced on their Twitter account that they were now "occupying St. Paul's". There are many who, I'm sure, will consider this odd. maybe they were just seeking a safe haven, protection from the authorities, the sort of thing that the Christian church has done in the past for those who need a place of safety.

It made me wonder, though. Why protest at a closed Stock Exchange but only seek a pitch for your tent in a cathedral yard?

Then I realised, the protestors were actually attacking the wrong target.

The churches, of all denominations, are huge corporations. They have billions of pounds/dollars in real estate throughout the world. They have incredible investments in stocks and shares. In many pension funds some of the biggest investors are various churches.

Aren't the churches, in fact, the fat cats that we should be protesting about?

And, worse still, because they do some charitable work (and it is only some) they pay very little on nothing in taxation on huge swathes of their income. massive tax avoidance on a scale that would put most bankers to shame.

Take a look at the Salvation Army, just down towards the Millennium Bridge from St. Paul's overlooking the Thames towards the Tate Modern. I'm sure many see them as friendly, nice folks who wear slightly odd Toytown soldier outfits, play Christmas carols outside Tesco and rattle their tambourines. They are, though they cover it well, dangerous fundamentalists, loony creationists who believe the Bible word for word (and ignore the various nonsenses and contradictions that it contains). Their International HQ, built in recent years, wouldn't look out of place as the head office of a firm of accountants or an investment bank. It's on a piece of prime real estate and, in the open market, would have cost millions to build. It is plush and very comfortable. Some might say it was luxurious. I'm sure the hundreds of homeless they help each week are glad that so much was spent to make their pen pushers and senior churchmen work in such luxury. The Army get donations of billions of pounds/dollars each year - a small percentage is spent for anything most people would consider a good cause - most is spent on promotion, publications and indoctrination - but they pay little in tax despite being such a huge global corporation.

The Church of England and the Roman Catholic church also avoid tax on a major scale despite uh of the money donated for good causes gong into investments of stocks and shares.

Yes, those who camped outside St. Paul's cathedral last night needed somewhere to camp. Yes, they sought safe haven so the authorities couldn't round them up, arrest or move on - though there was no evidence that was happening. But, while they're there why not properly Occupy St. Paul's.

* We need an openness, currently not happening, about the funding of religious organisations.

* We need an openness about the tax paid by religious organisations.

* We need an openness about how donations to religious organisations is used and how much is in stocks and shares and bonds.

To my mind, the churches are corrupt international corporations that have been allowed to have a position above the law.

This must stop.

OCCUPY ST. PAUL'S!