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This is a good development.

If the owners of the Euro (France and Germany) are affected, then we might see some thing moving forward.
When only the peasants are suffering, nothing would move.

Then, of course, with our current politicians (and hedonistic, self-centered society) "moving forward" might even be worse. Especially if "moving forward" ends up being France and Germany moving against each other.

by cagatacos on Thu Aug 11th, 2011 at 08:59:09 AM EST
Or, it may lead to another great depression.

The start of the Great Depression is commonly assumed to be the October 1929 stock market crash in the United States. It didn't really become the Great Depression, however, unti 1931, when Austria's Creditanstalt bank desperately needed injections of capital. Essentially, neither France nor England were willing to help unless Germany honored its reparations payments, and the United States refused to help unless France and the UK repaid its World War I debts. Neither of these demands was terribly reasonable, and the result was a wave of bank failures that spread across Europe and the United States.

http://drezner.foreignpolicy.com/posts/2011/08/09/is_it_1931_yet

by asdf on Thu Aug 11th, 2011 at 03:11:40 PM EST
[ Parent ]
From a PIGGY perspective, we are going surely into one. It if draws others (the proper Euro countries, not the lesser ones), then maybe (maybe, maybe, maybe) a proper response will be forged.
by cagatacos on Fri Aug 12th, 2011 at 09:46:45 AM EST
[ Parent ]
We could pick up where we left off in May 2010:
"Sarkozy went as far as banging his fist on the table and threatening to leave the euro," one unnamed Zapatero colleague told the paper. "That obliged Angel Merkel to bend and reach an agreement."

The French had Spain, Italy, Portugal and the European Commission lined up behind them. On the other side stood Germany, ranged alongside the Dutch, the Austrians and the Finns, all quietly hoping Merkel would prevail.

...

Sarkozy's famous victory is less than final - and he might yet regret his showdown with a chancellor of Germany.

(more)

Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Fri Aug 12th, 2011 at 10:02:39 AM EST
[ Parent ]

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