The Worst-Case Euro Scenario -- Wall Street JournalEach day the currency remains on life-support in its current form, the consequences of its eventual death become graver.
On the Continent, August is usually reserved for long vacations in the sun. Instead, European leaders spent the month working on increasingly desperate attempts to save the euro in its current form. There's only one prospect more frightening than what would happen if they fail: what would happen if they succeed.
This is not hyperbole. The euro is an idea built on economic and political dishonesty, at the heart of which lies a flaw that the currency's architects never dared to address: Given that the euro zone's economies are so different, how could a single interest rate possibly apply to all of them? And how could these countries, having surrendered monetary policy, continue to control national public spending and therefore the size of their deficits and debts?
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My Comment: In Europe's past .... every time there was a fiscal/debt crisis .... political instability/unrest/wars were the result. Is Europe repeating history .... let us hope not.
Update #1: In Euro Zone, Banking Fear Feeds on Itself -- New York Times
Update #2: Bring Out Your Dead - UBS Quantifies Costs Of Euro Break Up, Warns Of Collapse Of Banking System And Civil War -- Zero Hedge
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