June 24, 2011 | In: Opinion
When Will the Euro Collapse?
I have talked about Greece, Europe, and the Euro a few times before. I have discussed how Greece is affecting the whole European market (and the American one as well), how Europe is becoming nothing more of another Chinese colony, and how the death of the Euro is imminent. But when will it be?
Let us examine what’s going on in different parts of Europe, particularly the PIIGS countries (Portugal, Ireland, Italy, Greece, and Spain):
- Portugal wants some tougher austerity measures: As if the previous measures weren’t enough, the new Portuguese government wants to make them tougher. I don’t see the Portuguese revolting, after all, they lived under a communist dictator for a long, long time.
- Ireland’s economy is in freefall: Yes, check the Irish banks, notice the very bearish trends. That country’s economy is going nowhere. Someone, somewhere, decided that Ireland is no longer exemplary when it comes to economy. Not only that, the Irish are now remembering, again, that there is Northern Ireland (if you get my point).
- Italy’s economical problems are no better than Ireland’s: But it’s not the time right now to unveil the horrors of what’s going on there, economy wise. Just today, the spread between the Italian and the German 10 year bonds reached a new record since the Euro was created. Not to mention, of course, Italians are much more like the Greeks when it comes to loving life, and hating large organizations that control their lives (in other words, the government).
- Greece is currently being bailed out for the hundredth time: Which means more austerity measures to the life-loving Greeks. I don’t know how much longer they can wait before moving back to drachmas. But the question is, can they move back to their original national currency? Currently, the European Union is giving more and more loans at exorbitant rates in Euros, maybe to enslave them. The problem is that Greece will never be able to pay its debts, at one point, the Greeks will truly revolt and there will be nothing that can stop them. Some are suggesting that the only solution to solve the Greek problem is to sell some state assets such as historical landmarks and islands. Imagine the Acropolis with a German flag flying over it.
- Spain’s having a constant barrage of protests: And these protests are just the beginning. You can’t expect to enforce austerity measures on a population that have just started enjoying prosperity.
So, when do I think the Euro will collapse? Not this year, maybe next year, and if not, then definitely in 2013. By then the Germans, the French (whose economy may soon be in trouble), the Portuguese, the Irish, the Italians, the Greeks, and the Spanish will discover that they’re not the same people, they don’t have the same interests, they have different lifestyles, and they don’t want to be bound together by this one currency, that nobody seems to like anymore.
It was good that the Europeans created the Euro, so that the whole world knows that the USD is the only real international currency in this world.
By the way, do you know that the word Europe (of which the word Euro comes) originally refers to the Phoenician princess Europa, who, according to the Greek mythology, was seduced by Zeus? So I guess the Europeans do owe something to the Greeks!