Wednesday, June 2, 2010

The Euro On Tape: "Kerplunk"

Nah, I haven't been Rumplestiltskinnin' it. Just been out on the scoot, getting grimy, riding into sunsets and pondering my navel late at night. Even scooped a run over friend off the asphalt when called on to do so. All of this is completely irrelevant but maybe it relieves your burning desire to know where I've been.

One of the things on my mind tonight is the pending collapse of the European Union. As Greece goes, so will Portugal and Spain, and if there is fairness left in the game, Italy. The only ones left strong in the game over there is Germany and I find it highly unlikely that the good people of Deutschland are going to be willing to pay the debts of all their irresponsible neighbors. Nicht nein porcupine. Ain't gonna happen.

My prediction is that the single currency Europe is a dream that will soon go into the history books as an experiment that didn't work out. So much for the one world government signalling the end of time, right? Well, not so fast. Maybe you have just been looking in the wrong direction. Islam anyone? Anyone?

Does this spell disaster for the U.S. economy? I don't think so. I think people will keep on buying deodorant and Budweiser and gasoline and Pampers and the purple pill. The companies that manufacture these goods will continue to profit and employ people and the companies that sell them will continue to profit and employ people. As Europeans suffer through this currency collapse, they might buy less for a bit, but the huge wave of baby boomers have a lot of money to spend which will help us through whatever economic blunders Europe has to suffer through as they learn the seemingly basic lesson, "Don't spend more than you make".

You listening, Barry?

1 comment:

  1. My sincere hope is that Europe will fall. If they make the necessary changes and save themselves from collapse it will provide a weaker example of Socialism's inevitable result. Canada, on the other hand, I have strong hopes will make the reforms it needs to and move towards free markets and see a subsequent boom in economic growth. This juxtaposition will be the perfect real-world argument. We've seen "hard" socialism from the USSR, "soft" socialism from the EU and both have failed. We have the capitalist successes of America and Japan but a turn around of both the economy and the economic system in Canada would be the key to link everything together. It's not just that Japan and America are somehow lucky and not just that the EU and the USSR are somehow unlucky.


    Wasn't Canada cited as one of the major reasons we needed Obamacare? Now they are having to consider potentially unconstitutional budget reforms to keep their nation afloat?