‘Is there no end to this European crisis? Is there even an ultimate solution?’
The other outcome, which I fear is far more likely, is that the Eurozone goes bust. In which case southern countries would return to national currencies, the north will probably stick to a single Euro-Lite or D-Mark-Plus, and we will all pass through two years of chaos and penury. The fact is that nobody really knows what this period of transition will look like or how it will run out. But one thing is certain: any conversion to a new currency will turn out to be yet another along-the-line looting of citizen’s savings, just as the introduction of the Euro itself – in hindsight – was revealed to be the largest collective wage-reduction in history. There will be an Argentinian-style ‘corralito’ of people’s bank accounts, followed by an ‘internal’ exchange rate which skims 10 or 20 or perhaps even 30 % off the purchasing power of private assets. This in the name of a return to competitiveness. Unthinkable, you say? Well, do not underestimate the ruthlessness of our political leadership in times of crisis. They know from their history books and from the recent Argentinian example, that popular fury can be held in control by the thin blue line for a week or two, and that it then abates.
|Swiss Weapons of Mass Construction|
But enough cheerful nonsense. Let’s get back to reality. The fact is that the introduction of the single currency was a mad experiment of the Dr Frankenstein type, which should never have been undertaken, least of all so fast and eagerly by people so blinded by their own ideology and self-importance. But – as the Romans, Montesquieu, Jefferson, Stuart Mill, Hobbes and who not might have told you – such frolicking hubris is what you inevitably get, if you hand over sovereign power to people who are not subjected to checks, balances and electoral correction.