"The latest piece by Ambrose Evants-Pritchard of the Telegraph highlights a disturbing error this deep into the crisis. Angela Merkel is still referring to this crisis as a debt crisis:
Angela Merkel told German industry today that we are not facing ”a euro crisis, but a debt crisis.”He goes on to describe why this is wrong:
“She is wrong. Total levels of private and sovereign debt in the eurozone are lower than in the UK, the US, and far lower than in Japan.at http://pragcap.com/the-euro-a-machine-of-perpetual-destruction
…Not because of debt, except in the most superficial sense.
The reason this crisis keeps grinding ever deeper is because the euro itself is a machine for perpetual destruction. The currency is fundamentally warped and misaligned.
It spans a 30pc gap in competitiveness between North and South. Intra-EMU current account deficits have become vast, chronic, and corrosive. Monetary Union is inherently poisonous.”
