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FSN: The Euro’s Demise May Be the Final Chapter of the ERM Debacle
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
The drama of 1992 showed why Germany cannot lead Europe out of a monetary crisis
by Jeremy Warner
Telegraph.co.uk
Few problems in economics are genuinely new. Virtually every scenario you care to think of has been played out before in some shape or form. Thus it is with the eurozone debt crisis, which has some striking parallels with the debacle of Britain’s entanglement with the European exchange rate mechanism back in the early Nineties.
Today’s crisis is of course infinitely more complex, intractable and serious, but it shares many of the same characteristics. The central issue – that it is next to impossible to maintain a currency union with Germany unless wholly aligned to the German economic cycle – hasn’t changed.
Frogmarching other, structurally very different, European economies towards the imagined prize of German monetary and fiscal discipline is again proving a monumentally destructive process. Britain learnt its lesson early. Others were not so lucky. The consequences of Europe’s folly will echo for generations.
Continue Reading at Telegraph.co.uk…
2012-09-12 17:30:44
Source: http://silveristhenew.com/2012/09/12/the-euros-demise-may-be-the-final-chapter-of-the-erm-debacle/
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