Yet Europe's problem isn't the euro. If it were, Hungary, Iceland and Latvia—none of which use the euro—would have been spared their painful days of reckoning. The same applies for Britain. Europe is in a debt spiral brought about by spendthrift, overweening and inefficient governments.Bull!
The problem is not the various governments of the euro-zone, the US, Ohio, California, Detroit, or pretty much every other place on the map, because whenever they are talking about this fundamental problem of debt control, they are talking about democracies. The problem is not the governments that people elect, the problem is with the people who believe lunch should always be free.
When the people's representatives dole out favors, tax breaks, subsidies, social welfare programs, etc. they buy votes. But is it the fault of the politicians who throw around tax money like beads during Mardi Gras, or is it the fault of the electorate that greedily feast on the dole and happily reelect the people who give them free stuff!
Democracies get the governments they deserve. Stop blaming the elected politicians for accurately reflecting the desires of the people they represent.
How bad is the problem? Surveys of Tea Partiers--that part of the electorate most vocal about deficit control--show that even they don't actually want to make the kind of cuts that are increasingly necessary. If even the Tea Party is deluded about our financial condition, and if even they always want it to be Fat Tuesday and never Ash Wednesday, what hope do we have? Do you really expect politicians to make serious cuts when there is almost no segment of the population that will support them?
So, hold on to your hats and invest in gold. Europe's fall is inevitable...and so is ours.