EuroDoom for a Weekend in June
How about a nice slice of EuroDoom to ease you into the weekend?
With all the post-primary news, the European Debt Crises news has been chugging along for a while now. let’s look at some, shall we?
Heh. “The Euro cannot be destroyed by any craft that we here possess. It was made in the fires of Frankfurt. Only there can it be unmade. It must be taken deep into the heart of the European Central Bank, and cast back into the fiery chasm from whence it came!”
If the Leftists win the next round of voting in Greece, they promise to cancel the EU-sponsored bail-out and re-nationalize banks and companies. Way to calm the markets, dude! Not to mention reenacting Clevon Little’s famous scene from Blazing Saddles. “Experience is a dear teacher, but fools will learn from no other.”
“It is no longer a question of if, but how, Greece will leave the euro.”
The money flight from Greek banks continues.
And there’s this: “I can see only one mechanism that could force a collapse of the eurozone: a generalised bank run in several countries.”
In the showdown between Greece and the IMF, both sides deserve to lose.
NEIN! “Almost 80% of Germans reject eurobonds and 60% are against Greece remaining in the euro.”
Germany and Greece play chicken over the euro. That’s like a Mercedes playing chicken with a [ERROR: NO GREEK AUTOMAKER FOUND. ANALOGY ABORTED.]
Ireland votes yes on the Fiscal treaty, and then turns around with an implied “Now fork it over, Otto.”
Why Germany is great and Spain is totally screwed.
And Spain is really screwed.
Which is why the Germans seem inclined to let them have more rope.
Though at least one source says reports of Spanish bank runs are exaggerated.
But even Germans are getting nervous. Also this:
It’s a winner-take-all world. Countries that do well have to do a few things extremely well. Germany makes the world’s best machine tools, some of the best heavy engineering equipment, not to mention autos. German manufacturing dominates innumerable key niches. The Spanish don’t do anything well. They haven’t done anything well since the Spanish Empire outsourced its manufacturing to Flanders in the 16th century.
Eurobills instead of Eurobonds?
As a journalist told me yesterday, he worries whether the money in his pocket will be worth anything a year from now. Others worry about Germany’s increasingly negative image among recession-hit southern and eastern Europeans. Americans will understand this feeling well: you pay and pay to help others, only to have them turn on you in hatred and wrath, accusing you of horrible hidden motives and denouncing your selfishness.
Tags: Euro, Europe, European Debt Crisis, Germany, Greece, Ireland, Spain, Welfare State