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June 10, 2010
The Unthinkable Is Now Inevitable
The Euro is going down. Not with a whimper but with a bang. A trillion dollar bang. Mrs Merkel is right: "The euro is in danger... if the euro fails, then Europe fails." What she has not yet admitted publicly is that the main cause of the single currency's peril appears beyond her control and therefore her impetuous response to its crisis of confidence is doomed to fail.The welfare state as we know it is unsustainable. I suppose I'm going to need some back up for such a broad statement. I have it. How about this: Europeans Fear Crisis Threatens Liberal Benefits. Across Western Europe, the "lifestyle superpower," the assumptions and gains of a lifetime are suddenly in doubt. The deficit crisis that threatens the euro has also undermined the sustainability of the European standard of social welfare, built by left-leaning governments since the end of World War II.And yet under our Glorious Leader, in this crisis our government has moved in the direction that sunk Europe. One way or another it will not last. Cross Posted at Power and Control posted by Simon on 06.10.10 at 01:16 PM
Comments
The Euro will not fail because of Greece. It may very well fail because of the politicians who decided to support Greece to prevent a default. It was only about a month ago that they put together a "rescue" fund. It consisted of about 800B Euros of promises. And every week since then matters have deteriorated. Why not just announce the rescue fund was ten times as large, 8,000B Euros? Since they don't have the money what difference would it have made? Now the ECB is buying up Greek debt that creditors are very eager to sell. And the US Federal Reserve is doing the same. And who else? Propping up the PIIGS will ruin the Euro. A Greek default months ago would be forgotten by now. The "rescue" package was political. The leaders were more afraid of political weakness than of fiscal insanity. They chose the insanity but got both ills. KTWO · June 10, 2010 07:19 PM What looks very interesting to me is which currency you get for your Euros if it goes away. Who decides? I mean, I'm sure they'll say Italians get Lira and French get francs, but what about the Bank or America or Hong Kong banks? The world will be totally screwed short-term if it happens. If it starts looking inevitable, look for the more savvy to drop their Euros which would crater its value so the serfs in EUnuchstan will all be Picts. Veeshir · June 11, 2010 12:46 PM Post a comment
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If the Euro falls, what changes? The pan-European EU government is still in power, and they're still as kleptocratic, opaque, and totalitarian as ever.