European bond rates rocketing signals the likely failure of the euro as currently constituted.
Split the damn ting in two. It's the obvious solution. Let the peripheral and southern countries run a softer currency and the core northern ones operate like the old Bundesbank with the Deutschmark. You can't run the euro only to support the German idea of what an economy should be.
Chancellor Merkel is turning the strong euro catastrophe into a global one: hoping, I suppose, that non-euro countries will be forced to assist in a bail-out. The failure of the euro is more-or-less inevitable. This is not a single fixed-currency plate. It needs the ability to flex.
Either that or it needs a Fed equivalent central bank capable of acting as the lender of last resort. Thank goodness for the US that it has such an institution.
The failure of the euro can either be orderly but embarrassing (a euro-split) or disorderly and humiliating (a euro failure). No other choices look likely - the Germans don't want an indebted Europe.
Cripes.
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