The Reset Button

What will it take to solve the Euro crisis?  It’s an important question because no one professes to have the actual answer for the long term.  Injecting €100B or so into Spanish banks does nothing more than buy time – the real problem is that they cannot service the debt they have now or in the foreseeable future.  Ditto for Greece, which would prefer to grow its way out of the problem but does not have an economy that is capable of doing this.

So what is the solution?  There may not be one in Europe or anywhere else.  In other words, collapse may be inevitable.  It’s worth looking at this worst-case scenario not just to prepare for it somehow, but because it suggests that eventually we’re going to have to push a big, red button labeled RESET.

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