The Euro Has Failed

About 2.5 years ago I wrote:

The 3% ceiling won’t matter anymore from hereon. Consider the European stability treaty dead. One member state after another will violate the requirements. The fact that a bailout of some Euro states by others is discussed, just shows how torn this European Union really is, how severe its imbalances are. With discrepancies like these, it is completely unfeasible to maintain a currency union. The Euro will keep taking its beating for it.

The breakup of that currency union is now approaching at an ever accelerating pace.

Yesterday Mish issued a nice little note to Trichet:

Hello Mr. Trichet.

The odds 17 sovereign states “get their act together” quickly regarding a fiscal union is zero.

There is no agreement on Eurobonds even from Germany and France, so how are 17 countries supposed to quickly agree on that?

Finland and Austria want collateral, and pray tell why shouldn’t they? Is every country supposed to do exactly what you want?

Greece is going to default and you and your big ego made matters worse by refusing to accept that fact, so much so that you and the ECB failed to plan for it.

You want 17 countries to get their act together. How about one central bank, the ECB, led by you, get its act together and admit your policies have failed? How about the ECB coming up with a legitimate plan for dealing with it this crisis instead of illegally making demands on sovereign nations?

The market gave you fair warning on Greece and you refused to see it. Now the market has said “time’s up”.

Face the facts Mr. Trichet “The Euro has failed.”

Mr. Trichet, you better come up with a plan to deal with the aftermath, because odds of a Eurozone breakup are large and growing.

… actually, in my opinion the best thing that could happen to the Eurozone would be to for it to break up, and take those bureaucratic, corrupt, and destructive leviathans of the European Parliament, the Commission, the Council, and the ECB right with it and thus off the backs of Europe’s sovereign nations once and for all.


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