The stock markets and the currencies are telling the people of Europe an obvious story: The unnatural association of hard working, frugal populations cannot co-exist with lazy and spendthrift populations.
Northern Europe cannot support Southern Europe. This was clearly seen by the cold objective observers of Europe 15 years ago, before the Euro came into being. It was widely predicted by the Euro Skeptics that the Euro would fail.
We are seeing those predictions come to pass. We can also see that the reason for the Euro was not to help the population of Europe achieve a better living standard; but rather, to help big banks and trans-national corporations achieve greater profits.
This was the reason for the creation of a currency that would replace currencies that had been in use in Europe for over a hundred years.
Because the reason was fake, the currency, The Euro, is also fake! There is no way that societies with opposing economic values can sustain a currency that links them together.
The members of the Euro Zone already know that the end is in sight. The major European Banks that have bought the Bonds of the Southern Countries, the PIIGS, will find that those bonds will be worth half of what was paid for them!
These banks will then go to their governments and be repaid for their losses! The people who pay for these gigantic losses will be the taxpayers of the Northern Countries.
The politicians who led their fellow citizens into this morass will probably have their heads handed to them.
We are seeing, with Europe and the Euro dropping like lead balloons, that the stock markets and commodity markets around the world, are also dropping.
Exporters from countries outside of the Euro Zone are now faced with products produced in Europe selling at a much lower price. These exporters cannot compete and their stock prices reflect this. Exporters who sell their products in Europe will see their sales fall as the Euro’s purchasing power drops because of the devaluation of the Euro.
The entire Global Economy will drift downwards as the European Union loses its economic strength.
The economy of the world is totally intertwined, and any weakening in one geographic area will cause weakening in the rest of the world.
The U.S. and Asian stock and commodity markets have all taken major hits in the last three days.
These hits will continue until Europe puts its house in order.