All this talk about the Euro imploding, that the Euro is on the edge and so on is fiction
The whole point of the Euro was to give countries in the Euro a stable currency. The current crisis is EXACTLY what the Euro was created for. To protect economies in the Euro zone if they were to get into difficulty. I mean why else?
To give people a stable currency when things are good? The domestic currencies could have done that job
The most common argument against the Euro is that the countries in Europe are so vastly different, that their countries are in different parts of the economic cycle. Of course that may be true but that is not the reason why Greece, Portugal and Spain are having problems now.
The problems are from government and central bank mismanagement.
I am not going to rant on about mistakes in the past for a change, I have covered it elsewhere.
The fact is that Greece, Ireland and Portugal are facing problems now. If the countries are allowed to default it will force their economies to work in a way which is compatible with the Euro.
They will have to reduce their government spending and balance their books.
To expect to have one currency take over the national currencies and not expect to have teething problems is absurd. The Euro is still a new currency, these problems are growing pains and everything will come in sync when the adjustments have been made.
The worst thing that can happen is for the Euro governments and the European Central Bank to print money out of thin air. If there is anything that will cause people to loose confidence in a currency it is by the rampant printing of money which destroys it’s value and destroys the power of the money in people’s pockets.
The ECB should stay out of the restructuring and let the countries align themselves with the ECB policies
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