OK

This is only a Preview!

You must Publish this diary to make this visible to the public,
or click 'Edit Diary' to make further changes first.

Posting a Diary Entry

Daily Kos welcomes blog articles from readers, known as diaries. The Intro section to a diary should be about three paragraphs long, and is required. The body section is optional, as is the poll, which can have 1 to 15 choices. Descriptive tags are also required to help others find your diary by subject; please don't use "cute" tags.

When you're ready, scroll down below the tags and click Save & Preview. You can edit your diary after it's published by clicking Edit Diary. Polls cannot be edited once they are published.

If this is your first time creating a Diary since the Ajax upgrade, before you enter any text below, please press Ctrl-F5 and then hold down the Shift Key and press your browser's Reload button to refresh its cache with the new script files.

ATTENTION: READ THE RULES.

  1. One diary daily maximum.
  2. Substantive diaries only. If you don't have at least three solid, original paragraphs, you should probably post a comment in an Open Thread.
  3. No repetitive diaries. Take a moment to ensure your topic hasn't been blogged (you can search for Stories and Diaries that already cover this topic), though fresh original analysis is always welcome.
  4. Use the "Body" textbox if your diary entry is longer than three paragraphs.
  5. Any images in your posts must be hosted by an approved image hosting service (one of: imageshack.us, photobucket.com, flickr.com, smugmug.com, allyoucanupload.com, picturetrail.com, mac.com, webshots.com, editgrid.com).
  6. Copying and pasting entire copyrighted works is prohibited. If you do quote something, keep it brief, always provide a link to the original source, and use the <blockquote> tags to clearly identify the quoted material. Violating this rule is grounds for immediate banning.
  7. Be civil. Do not "call out" other users by name in diary titles. Do not use profanity in diary titles. Don't write diaries whose main purpose is to deliberately inflame.
For the complete list of DailyKos diary guidelines, please click here.

Please begin with an informative title:

Reading the diary on the wreck list at the moment "The Euro Crisis by the numbers" it didn't really deal with the consequences of such a collapse.

Europe happens to be the largest export market for the US, it accounts for around 1/3 of the worlds total GDP. European countries not in the Euro-zone depend heavily on trade with member countries. The European Union is also China's second largest export market after the US. The globalization of today's economy will leave few at the borders of the fallout.

I have often listened to cheering both in the US and the UK at the thought of the collapse of the European model, the consequences of such a catastrophe are hardly mentioned.

In both the US and Europe dangerous games are being played that benefit but a few, the near collapse of the Euro is all part of the global financial crisis it is merely phase two. The willingness to expect continual growth to finance explosive public and personal debt was a poorly concealed myth designed to funnel unheard of wealth into the hands of a very few. The solution proposed was austerity which has already exacerbated an already over stressed situation.

The collapse of the Euro will wipe out all the gains since WWII and will replicate many conditions present in the Great depression, political and social instability will become a fact of life.

The US economy made deliberately fragile by an obstructionist party is not in good condition to absorb such a financial implosion. The economies of China and India still depend on the industrialized countries their internal markets cannot sustain the growth upon which they have come to depend.

In my opinion it is too late for a controlled exit from the Euro any such disintegration will be like an avalanche, the thought of a core of strong Euro countries coming together is a pipe dream the fallout on the fringes will prevent that being successful.

One option is a federal Europe and that might work, however, since they cannot agree on which way is up, that is about as easy as herding cats and could not be completed in the time frame required.

Its been a particularly depressing week with the climate talks in Durban promising total failure. China and India want Kyoto to continue unchanged since this called on them to do nothing at all, the US has already abandoned the process, Canada probably the per capita worst offender wants who knows what, as long it doesn't effect them. Europe once at the heart of the process has other problems on its mind.

Such lack of clarity and unwillingness to act on both sides of the pond has had the effect on my partner and I on how we are best going to come out of this potential meltdown, and what can we do for the future. One thing we agree on is that the current incarnation of globalized capitalism cant last much longer, what we cannot predict is what is on the other side of such a systematic failure.

I wish I could be optimistic, but all I see are the same memes being repeated, if austerity doesn't work try some more until you are sure it is broken.

Perhaps some good will come of this in the long term but the immediate future does not look good.

Intro

You must enter an Intro for your Diary Entry between 300 and 1150 characters long (that's approximately 50-175 words without any html or formatting markup).

Extended (Optional)

EMAIL TO A FRIEND X
Your Email has been sent.