Wednesday, March 10, 2010

Built On Lies: The Fundamental Flaw Of The Euro

We don't mean to be alarmist but the crisis of the euro is real, ongoing and has world-wide repercussions. MC knows that its focus is frequently international but we hope that is a strength and not a weakness. Der Spiegel has an excellent article on the foundations (sand) of the euro and what is playing out lo these many years after its introduction as the single currency for (most of) Europe. Click on the title of this post to read the article. Here's the briefest taste but read the whole thing:

"The notion that the European common currency is based on nothing but a series of lies is now taking its toll. All of the founders of the euro knew that the new currency could only be stable if all member states committed themselves to sound financial policy and, in the long run, spent only as much as they collected in tax revenue. But many ignored this principle right from the start."

Hat tip: Fretbunny