The Euro’s Death Knell Could Come As Early As September 2011
by Phoenix Capital Research
The primary issue for Europe has been, is, and will be Germany. True, the ECB is the alleged central bank for Europe, but without Germany’s support, the ECB is simply a monetary figurehead representing bankrupt European nations.
The reason for this is because Germany is the largest, strongest, most solvent economy in Europe. And Europe is not the US.
In the US, most people call themselves “Americans.” Even those individuals who like to refer to themselves by ethnicity, the word “American” remains part of their self-description e.g. African Americans, Latin Americans, Native Americans.
This mentality creates a cohesion in the US that does not exist in Europe. While New Yorkers may not especially like Americans from California, they still consider California an important part of the US and a place that is ultimately part of their “home” country.
In contrast, the European Union is the union of 17 separate countries most of which speak different languages, have entirely different cultures, and long-standing histories with their neighbors that usually involve multiple wars.
In simple terms, the people in European countries take pride in their individual countries, NOT in the EU. In fact, they only bought into the notion of the EU because of the alleged economic benefits it was meant to bring them.
Now that the economic benefits of the Euro are falling to pieces, these underlying tensions are coming out. Consider France and Germany, the two largest economies in Europe (and neighbors). France, a country with strong socialist tendencies is extremely supportive of the Euro (67% want to keep it). In contrast, Germany, which eschews loose money policy in general, wants out (only 30% of Germans want to keep the Euro).