Death by Euro: Spain Faces Crisis as Catalonia Turns Secessionist | Via Meadia

I disagree with this writers contention here....

.... it’s clear what is pushing Spain into its worst constitutional crisis since the death of Franco: the colossal failure of the European currency union. European policy makers foisted a currency they did not understand on a continent that wasn’t ready for it, and the result is what may be the single most expensive economic policy fiasco ever seen.

This is not what is going on at all in Europe. The Euro is not the problem. What is going on is that governments there have indulged on an orgy of government spending supported by baby-boom demographics where there was a huge population of young, productive, working folks that were relatively healthy and did not absorb much of the public money.

However, demographics have changed and now profligate government spenders are finding that they can no longer behave this way. The Euro has, yes, forced them to face reality. The other option, what most commentators are selling to the public, is that if European nations had their own currency, they could debase the currency and keep the governments afloat. So, in other words, somehow a fiat currency allows governments to continue to be irresponsible and somehow this is good.... for who?

At one point, socialists will ALL have to face reality, socialist in Europe, socialists in the United States, socialists in Australia will have to deal with the reality of a world of limited resources and the inability to continuously borrow money from others to give themselves benefits today.


Death by Euro: Spain Faces Crisis as Catalonia Turns Secessionist | Via Meadia