Sep 11, 2012
Alasdair Macleod, our man on the ground in the UK joined us today for an interesting discussion of how the Euro gets saved, although saved may be too strong a statement. Germany can exit the Euro, which would leave the weaker countries free to remain and inflate to their hearts' desire. While the newly minted German currency, perhaps the Deutschmark 2 would get stronger, the diminshed Euro would get weaker, at least in theory. This avoids the need to eject countries such as Greece, Italy, Portugal and Spain and it allows them to keep on the Keynesian socialist path they've set for themselves. Can it it work, perhaps for a while, but in the end sound money is the only way out.