When the smoke clears, here is what the “World Is Flat” droids will say about the failed European experiment…
It will be said that the European Union fell apart because we didn't have enough "political integration." That is, we had monetary union without fiscal union. In other words, this grand experiment in democracy failed because the individual nations had too much democracy.
They will blame Trichet for not easing soon enough or for not printing enough money. The collective wisdom will be that he made the same "mistakes" (insufficient money printing) the Fed made in the 1930s. They will say he gave in to the inflation hawks. They will blame Germany’s “irrational” memory of the Weimar hyperinflation for preventing Trichet from becoming Helicopter Trichet (should the Reichsbank President who oversaw that hyperinflation be nicknamed Dirigible Havenstein?).
Ireland, one of the darlings of the European experiment, is now among its worst off. That "Celtic Tiger" is now a paper tiger, paper as in debt. It has incurred unconscionable liabilities because it jumped headfirst into the modern blarney of “growth” through skyhigh leverage. Remember, modern economies run on paper shuffling and asset bubbles, and anyone who questions this just doesn’t “get it.” Well, those who expected to be made whole on Irish debt aren’t going to “get it” either.
For all their worship of progress through psychiatry, one thing these brain trusters don’t do is self-actualize.
The world is round. Greece isn't Germany. Technocratic global democracy is a scam.