The Eurozone is in shamble with Spain and Greece now pondering if they should have joined the European Monetary Union in the first place. Even if Europe’s powerhouse, Germany, or ECB bail them out, I don’t see an end to their demise. Only, unless if they divorce the Eurozone but that would send a terrible ripple wave effect throughout the Euro Member States to possibly consider doing the exact same. Is this the end for the Euro?
The problem is not due to Spain or Greece’s own fault, or whatever else; the problem is the fundamental structure of the entire European Monetary Union.
I wrote and posted a blog on this very same subject in 2008 or 2009, that; how they have structured the European Monetary Union was the very big mistake they have made from the get go.
They structured it that each member country must have a certain unemployment rate, inflationary rate, interest rate, etc., all at a certain minimum rate, and if any member country goes below that line, which is what is happening with Spain, Greece, etc., then they risk the chance to default on their membership affiliation to the Monetary Union. This was fundamentally wrong.
They should have followed the United States Monetary Union Policy, whereby its fundamental structure for any individual State does not affect the US Dollar, nor the US Federal Government’s Macroeconomic Policy. Such as California, which once was one of the largest economies in the world, which today, it has seen its unemployment rate climbing, its Budget shrinking, etc as the global recession cuts through the world economy and market.
The US Monetary Union Policy should be the example for any similar Union such as the Asian Monetary Union, North American Monetary Union, South American Monetary Union, and Southern Africa Monetary Union that are currently being considered for implementation. If not, the similar Eurozone’s flu will eventually catch them as well.
Are we heading for a World’s Single Monetary Union, hence a Single Global Currency? World Power Domination?
As for the Eurozone, I will give them until around 2016 and it will be the end of the Eurozone. After that, any Euro currency you’d have in your wallet would simply be a token of a souvenir. I bet you, the UK is laughing at the Euro Member countries behind closed doors right now.