In "The Wreck of the Euro" (hey, that would make a good song), Walter Russell Mead points out:
Politicians in Europe thought they were living in a post-historical period in which mistakes didn’t really matter all that much.But mistakes that involve lying to ourselves by diddling a currency always matter eventually. It's very much like Richard Feynman's caution in a different context:
For a successful technology, reality must take precedence over public relations, for nature cannot be fooled.A currency has many functions, but its primary one is a credible promise. Lying destroys its value, though the harm sometimes is delayed until enough people are disillusioned.
H/t Maggie's Farm.
4 comments:
I like it. We can call states that use the Neuro the "Neurotics."
In "The Wreck of the Euro" (hey, that would make a good song)....
It's already been written, only it's called The Wreck of the Edmund Fitzgerald, and it's not too far off.
More seriously, I think Mead misses the larger, underlying problem: there's not enough unity of value sets, socially or even of the purpose of money, for the euro zone as currently constituted to survive.
Eric Hines
"there's not enough unity of value sets, socially or even of the purpose of money, for the euro zone as currently constituted to survive."
What?! You mean you can't really build a society on diversity?!!
That depends on how the meaning of "diversity" diverges....
Eric Hines
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