Draghi: It\’s all about the politics

Sigh:

Mr Draghi claimed that the currency was “absolutely not” in danger when asked by France’s Le Monde newspaper in an interview.

“We see analysts imagining the scenario of a euro zone blow-up,” he said. \”They don\’t recognise the political capital that our leaders have invested in this union and Europeans\’ support. The euro is irreversible.\”

Yes, there is a lot of political capital invested in the project. That certainly does make the politicians more stubborn about admitting to a mistake.

But as ever, just because you want to ignore economics does not mean that economics is going to ignore you.

Given that the euro is, in economic terms, a quite glorious cock up, it will be found out. Indeed, it is being found out. That depression in Greece, that near depression in Spain and here in Portugal. They are the result of the euro.

So it\’s not that the euro will fail, it\’s that it has.

3 thoughts on “Draghi: It\’s all about the politics”

  1. “We can ignore reality, but we cannot ignore the consequences of ignoring reality.”
    ? Ayn Rand

    Sums it up nicely.

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