Otherwise, the eurozone banking system will collapse.

If that happened, the euro would eventually collapse.

None of this means that the euro will collapse.

Indeed, we are warned almost daily by the International Monetary Fund and others that if bailout efforts are not greatly expanded, the euro will perish.

At some point, the ticking time bomb will explode, and the growth rate will crash.

While Greece s eurozone partners may be able to carry it for decades this way, and even to bail out Spain, the system would surely collapse under the weight of a larger economy.

Little did the world know then, economies would collapse, currencies would become worthless, elections would be stolen, regimes would fall.

In recent years, many experts and commentators have said that the Atlantic Alliance would crumble or become irrelevant.

Only a price reduction would create current account surpluses and enable the crisis countries to pay off their foreign debts. It is time for Europe to come to terms with this remorseless truth.

But this would simply prolong community financing of the GIPS current account deficits, now in its fourth year, for another couple of years. In the end, either the euro will collapse, or a transfer union will be established in Europe, in which the current account deficits will be financed with inter country donations.

As soon as the struggle to define criteria for mitigation action commences in future negotiations, this alliance will quickly unravel.

Third, the position of the euro will strengthen over time as more countries will join the euro zone.

While Greece s eurozone partners may be able to carry it for decades this way, and even to bail out Spain, the system would surely collapse under the weight of a larger economy. And such an economy France is in serious jeopardy.

Why Russia s Economy Will Not Collapse

So this is what a US debt default would look like the private sector would collapse, unemployment would quickly surpass 20 , and, while the government would shrink, it would remain the employer of last resort.

The financial integration brought about by the euro would be largely unwound.

After some considerable volatility, a smaller and more robust currency union will emerge and, importantly, Europe will avoid the euro s demise and a total breakdown of the eurozone.

But this is where the consensus breaks down.

That is why I believe that these countries and the eurozone more generally would benefit from euro depreciation.

But make no mistake our preference is to remain in the eurozone.

The debtor countries would regain their competitiveness. Their debt would diminish in real terms and, if they issued Eurobonds, the threat of default would disappear.

Now that its weaknesses are clear, the euro will remain a source of trouble rather than a path to political power.

This is best accomplished by authorizing the issuance of eurobonds, which would be jointly guaranteed by all of the member countries.

And when that ecosystem collapses, it could take a major ecosystem with it, like our atmosphere. So, what do we do about this? What are the solutions?

It is in Berlin and Paris, first and foremost, that the crisis management strategy for the eurozone must be decided.

Given the state of global finance, the euro s demise would be a phenomenal catastrophe.

This is where the analogy between human sciences and natural sciences breaks down.

It did not have to collapse so quickly.

In a debt restructuring, the northern eurozone countries (including France) will see hundreds of billions of euros go up in smoke.

For Greece and Portugal, staying in the eurozone will be a tight squeeze.

After all, a loss of computer records would make the euro equally suspect.

He said that the ECB would do everything necessary to prevent the disintegration of the euro, adding simply Believe me, it will be enough.

Without the hearts of news producers or, increasingly, of censors the seemingly formidable edifice of journalistic regulation will, sooner or later, collapse like the Berlin Wall.

The eurozone would then have one constituency, or seat, on the Fund s executive board, filled by a candidate nominated by the eurozone group of finance ministers.

When states are not democratic, this scaffolding col lapses.

The existing matches between desires, resources, and production technology deteriorate.

This means that intergovernmental agreements will be needed for some time to come, and that the eurozone will develop in the direction of inter governmental federalism.

But markets would happily gorge on bonds backed by the full faith and credit of the eurozone.

But these countries real economies would benefit from a furlough from the eurozone.

These measures are not dissimilar to those that the eurozone will pursue if Greece exits.

The United Kingdom and the euro zone will eventually decide to go most of the way.

If Soros were right, and Germany had to choose between Eurobonds and the euro, many Germans would surely prefer to leave the euro.

While the turmoil in Europe and the uncertain future of the euro have caused a pause in the shift from dollars to euros, the rebalancing in favor of euros will resume at some point in the future.

Oil prices will continue to rise until demand collapses.

Order in Pakistan could break down irretrievably.