The BRIC countries will have a disservice to Europe

Many people expect that the developing world will contribute and ease the crisis by buying bonds that refuse to buy European investors and the state. European countries, one after another, are cut off from the bond market and hopefully looking at developing their neighbors. And why not? Reserve stocks of the BRIC countries account for more than 4000 billion dollars. This amount may cover a large part of the deficit. However, foreign investment, not only will not help Europe, but it will only complicate the situation. National policies, proved to be suffering from a distorted incentive system, so that the operations in the short term beneficial effects on individual countries, can seriously damage the whole of Europe. If most politicians will take similar measures, the overall financial position will deteriorate. It would seem that the countries that are struggling are struggling for self-financing by means of controlled interest rates, should rejoice in any large investor as a valuable source, regardless of its origin. However, foreign investors and domestic - is not the same thing. Any increase in foreign purchases of local government bonds denominated in euros, will have consequences far beyond the short-term financing. It also affects the trade.