President of the Economic Psychic Friends Network and the father of macroeconomics, John Maynard Keynes, explains to the Masters of the Eurozone why they are doomed.
It was at Bretton Woods that Keynes identified one of the key problems at the heart of international economics – that imbalances in trade are next to impossible to resolve in a fixed exchange rate system without surplus countries accepting that they have as much of an obligation to do something about them as the offending deficit countries. As the eurozone is demonstrating all over again, the lessons have plainly not been learned.
The massive trade imbalances in Europe caused by the Germans will end up undoing all the good the Euro could have done. Keynes was smarter than the average bear (or Republican economist).