[InterceptPoint]

If there are some Economic-Geeks out there in Freeperland it would be nice to get the von Mises view of all of this.

It seems to me that the whole idea of the Euro has a fundamental flaw that is just now being exposed. That flaw is the idea that you can have a universal currency across several totally independent political entities that are able to operate without any real fiscal constraints. This inevitably results in some countries going so deep into debt that they reach out for the standard solution to their problem: inflate the currency and borrow more of the stuff to meet your debt obligation. That works (well sort of in the short run) when you are a COUNTRY WITH YOUR OWN CURRENCY. It doesn't work at all when you are a member of a group of nations where many if not most have very little interest in inflating the currency, at least at the rate that it will take to bail out Greece and Spain.

[C19fan]

The creation of the Euro had nothing to do with economics. It was all about the Euro elite taking away sovereignity from the member states. Europe was and is a poor candidate for a monetary union.

[prairiebreeze]

Good post

[Alberta's Child]

A very astute friend of mine with a keen sense of history recently pointed out that one of Germany's primary objectives in the early decades of the 20th Century was to establish a loosely-organized European continent with Germany itself as the dominant political and economic power.

One hundred years later, as my friend pointed out, it sure looks like they've achieved this.