Only two ways the crisis can end

In an otherwise unclearly written article on the Greek debt crisis, Jeremy Warner in The Telegraph boils down the issue to this:

There are only two ways this can end. Either the surplus core has to accept that it must continue to bail out the periphery on a virtually permanent basis—a transfer union—or the single currency must lose its outer fringe.

Both solutions carry significant cost to the core, the first through gift aid, the second through the crystalisation of bad debt.

Posted by Lawrence Auster at June 17, 2011 10:32 AM | Send