Greek Bail Out.

There are those who say that the level of Greek borrowing is unsustainable and to borrow more will make matters even worse, leading to default within five years. They argue better to default now.

Against this the argument goes that the euro would not survive long term if its members do not rescue Greece. One of the world’s top currency traders thinks this is nonsense. He points out that in America both Cities and States have gone bust in the U.S in the past, without either busting America or the dollar. He may well be right.

The threat to the Euro comes from a lack of central governance of the fiscal policy of its members. You cannot have a currency without a government. Euroland will have to go federal, at least as far as money is concerned, or go back to national currencies of which the deutschmark will be king. This is what the federalists always wanted, especially Germany. Because it knows that the Euro is the deutschmark with another name. This is why the Germans are so against their spendthrift southern partner taking their money to carry on spending.