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View Diary: The Euro Crisis by the numbers (165 comments)

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  •  My bet (4+ / 0-)
    Recommended by:
    KJG52, shaharazade, Floande, ozsea1

    is that the Euro won't go away completely, but that it won't exist in the same construct.
       I think several countries are about to get kicked out, but the "core" of the Euro will remain.

    "It smelled like tear gas but it tasted like victory." - Egyptian protester

    by gjohnsit on Sun Nov 27, 2011 at 01:46:05 PM PST

    [ Parent ]

    •  that is one possibility (0+ / 0-)

      but not necessarily plan A for those contemplating it.

      Germany desires a "simple" solution, preferably one that serves its interests the best. But simple solution usually turn sour when many important variables exist and you just can't wish them away.

      Any "core" must include Germany (of course) AND France. But... France is way too weak to be a pilar of stability to the new core.

      For any core to survive it absolutely NEEDS to rely on the countries of the KOC (Kicked-Out-of theCore) but nobody has any guarantees that these countries would voluntarily sign a declaration of financial slavery.

      For the time being, self-destruction is the course and it suits them just fine.

      •  Problem (1+ / 0-)
        Recommended by:

        Germany NEEDS those "poor" countries to continue to buy its goods. How can it continue to be a net-exporter if no one has any money?

        Of course, Germany and France could build a Euro limited to just the two of them, and they could take turns running a trade surplus year by year. "You get to have a trade surplus this year, then I'll do it next year."

        Bruce in Louisville
        Visit me at

        Follow me on Twitter: @brucewriter

        by bmaples on Mon Nov 28, 2011 at 07:16:05 PM PST

        [ Parent ]

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