Tuesday, October 7, 2008

Is the Euro Decline a Signal of E.U. Trouble?

There is some great analysis as to why the Euro is plummeting / Yen is rallying over at Investor Insights, but David Merkel is much harsher in his analysis of the Euro and E.U.:

It is possible that the current crisis could destroy the Euro, and possibly the EU. I think of the Confederation, where the economic pressure became so great that an extra-constitutional coup took place to create the Constitution, and implicitly, the fiat Dollar that we live with to this day. Without political unity, fiat currencies have short shelf-lives. Alternatively, the crisis could create a Federal Europe where the central government has significant powers to the degree that France in the Eurozone would be similar to Texas in the US. I don’t see that as likely; there is not the same degree of trust across the Eurozone as there is in the US.
Cliff dive below:

1 comment:

  1. Vote YES to Free Europe before it is too late - at www.FreeEurope.info

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