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

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  •  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-)
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      Euroliberal

      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 brucemaples.com

      Follow me on Twitter: @brucewriter

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

      [ Parent ]

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