From the most recent Nobel Laureate in economics

For much of the past decade Spain was Europe’s Florida, its economy buoyed by a huge speculative housing boom. As in Florida, boom has now turned to bust. Now Spain needs to find new sources of income and employment to replace the lost jobs in construction.

In the past, Spain would have sought improved competitiveness by devaluing its currency. But now it’s on the euro — and the only way forward seems to be a grinding process of wage cuts. This process would have been difficult in the best of times; it will be almost inconceivably painful if, as seems all too likely, the European economy as a whole is depressed and tending toward deflation for years to come.

Does all this mean that Europe was wrong to let itself become so tightly integrated? Does it mean, in particular, that the creation of the euro was a mistake? Maybe.

We would say yes, of course. But when you’ve got the most recent Nobel Laureate in economics stating that either there is a pan-European fiscal govenment or we’ll have deflation for years….or, that we don’t have the euro, then people really should start listening.

Not the euro is I think your and my choice, no?