Dr. Pinna says:
It seems unlikely. How could a currency which forty percent of the world uses, suddenly disappear? But paper is paper.
If the countries of Europe start saying Auf Wiedersehen to each other, which countries will pay the bonds, notes and other contracts written with the Euro as the currency?
This political and economic problem could cause the Global economy to sputter and slow down. The major depressions of the West could turn into nightmares…
Here is article from the UK Financial Times:
By Peter Garnham
Just two months ago, the euro was widely felt to have better prospects than the beleaguered dollar. But all that has changed thanks to the Greek debt crisis.
Ã¢â‚¬Å“The question is not whether to sell the euro or not,Ã¢â‚¬Â says Hans Redeker at BNP Paribas. Ã¢â‚¬Å“The question is when and at what level to sell the euro.Ã¢â‚¬Â
This year the single currency has lost more than 5 per cent of its value against the dollar. On Friday it dropped to a eight-month low of $1.3529. It has fallen nearly 8 per cent against the yen and has lost ground against the pound, dropping 2 per cent since the start of January.
Greece is a relatively minor eurozone economy, representing about 3 per cent of the regionÃ¢â‚¬â„¢s gross domestic product. Its problems have hurt the euro partly because of fears over contagion Ã¢â‚¬“ because other eurozone countries such as Spain and Portugal also have large budget deficits and high labour costs.
But the main driving force of the euroÃ¢â‚¬â„¢s fall from grace has been increased focus on a flaw that many commentators believe to be at the very heart of European monetary union.
Ã¢â‚¬Å“Behind this intense focus on Greece is the long-standing unresolved issue of how to enforce fiscal discipline in a currency union of sovereign states,Ã¢â‚¬Â says Thomas Stolper, at Goldman Sachs.
At stake is the confidence that has turned the euro into the worldÃ¢â‚¬â„¢s second most widely held reserve currency behind the dollar.
Jens Nordvig at Nomura says the euro has been trading like an emerging market currency over the past couple of months as it has tracked the sell-off in Greek government bond prices.
Ã¢â‚¬Å“The eurozone faces its first existential crisis since the euro was launched in 2002,Ã¢â‚¬Â says Mr Hart. Ã¢â‚¬Å“This seemingly vindicates the sceptics who have long regarded the eurozone as unsuitable for a single monetary policy given the divergence of its member states.Ã¢â‚¬Â