In today’s New York Times, Paul Krugman holds forth on the hubris of the Euro.
And we discover that the world economy may be really farther up the creek than previously imagined. Because Krugman warns that the the Euro is too big to fail. We’ve heard this before, and it turned out to be false. Yet Paul warns that trying to re-introduce the national currencies that make up the Euro will only trigger the “mother of all financial crises,” and that the only way out is for Europe to forgo national soverignty in favor of greater and deeper union. That Spain and Greece are only going to navigate their current financial crises by coming to rely on Brussels to a greater degree than they do already.
OK. I don’t follow this stuff too regularly, and I’m probably wrong on a lot of things. But I do know my history. And I know Galbraith’s rule, which is that whenever someone begins suggesting that a particular model is a sure thing, it’s time to head for the exits.
And I wonder which European Union state is going to make a break for the exits first.