There has been a lot of hand-wringing on why Europe is poised to send the world economy into a tailspin. Let's cut through the nonsense and tell it like it is.
In a nutshell, a few years ago, the frugal Germans decided to enter into a single currency agreement with the profligate Geeks, in addition to other countries.
The Greeks did what they always do -- spend well beyond their means.
Now the Germans are left holding the bag.
The current crisis is all about the German population not wanting to take responsibility for the mess that their politicians created.
They only way out of this mess is for the German government to own up to their responsibilities and correct their past mistakes. To do this they need to:
1.) Inflate the Euro to bail out the Greeks. Yes, this will cause people in Germany and other Euro countries to take an economic hit, but this is what they signed up for by agreeing to a monetary union with the socialist Greeks.
2.) Get out of the Euro and restore the Mark.
Sadly, the cowardly politicians in German are not likely to do either. As a result, the world economy could come collapsing down in a magnitude that we have never seen before.
