Time for Germany to Pay the Piper
As I’ve been unsuccessfully arguing since 1992, as a grad student at Columbia University when professor Robert Mundell, the “father of the Euro”, was conducting his work on “optimal currency areas”…the Eurozone is NOT an optimal currency area and never has been! I remember being blasted for my position on an Econ final by an Irish professor blinded by Europhoria.
Finally, after 23 years of ignoring reality, the Greek crisis has brought the issue front and center, like a festering, now life-threatening wound.
This is not about Greece…it’s about the fundamentally flawed Eurozone experiment. Greece is not the only “lesser-developed” Eurozone country hamstrung by the currency union.
I won’t go through the economics again…if you want to see that, refer to earlier commentaries.
The Eurozone was created primarily to benefit German exporters, and Germany has benefitted greatly from the system. It’s now time for Germany to pay the piper. Either bailout Greece and keep your captive PIIGS export market intact, or allow a North/South Euro split…the more natural state of affairs.
SUSTAINABLE GREECE / EUROZONE SOLUTION:
PIIGS, not just Greece, should exit the Euro asap and create a Southern Euro currency union, w/ France as anchor member of the Southern Eurozone and Germany anchoring the Northern Euro.
Expect a quick economic explosion in Southern Europe, as a devalued currency attracts global investment and tourism. France especially, would reap an economic windfall previously dominated by the Germans.
PIIGS sovereignty, self-determination, and higher economic growth potential. Back to the drachma, peseta, lira, franc, etc…
Let’s see if the French wake up…
9 Jul 2015