Euro Crisis Redux

[Circe]

So Italy's election got hung and so many basically voted against austerity that one commentator said the danger is that Europeans sick of austerity to lower deficits will identify the Euro with mass unemployment.

And go back to drachmas and lire and such.

Markets plunged, including ours.

Does anyone care? Does anyone believe there is a new financial system crisis?

 

[jwoodie]

So Italy's election got hung and so many basically voted against austerity that one commentator said the danger is that Europeans sick of austerity to lower deficits will identify the Euro with mass unemployment.

And go back to drachmas and lire and such.

Markets plunged, including ours.

Does anyone care? Does anyone believe there is a new financial system crisis?

1. No, I don't think you are crazy.

2. Yes, we are headed towards a devaluation war not seen since the aftermath of WWI.

 

[Circe]

1. No, I don't think you are crazy.

2. Yes, we are headed towards a devaluation war not seen since the aftermath of WWI.

Okay, then. Good.

1923 hyperinflation and all that? I don't know if competitive devaluation can lead to quite as much drama as that did.

Could be an interesting year. They've fended off the collapse of the Euro very well for some three years, but while the wheels of God grind slow, they grind exceedingly fine. Only the elites want the European Union (and the USA, which wants it so we don't get dragged into yet another World War started by Germany) and in addition to all the serious disadvantages of the EU, now the Euro is getting associated with mass unemployment. Whoops, that wasn't on the menu.