EURO CRISIS & EUROPE's DENIAL - Yanis Varoufakis

After the 2nd World War, and under the purposeful guidance of the United States, Europe began the process of integration which succeeded in making it possible to imagine a United Europe. For decades Europe’s elites bopped merrily across a sea of self-satisfying myths which nevertheless proved functional to the difficult task of creating the requisite inter-governmental institutions. Then, in 1971, the original American post-war design collapsed and a new global recycling mechanism emerged (the full story can be found in my Global Minotaur). At that point, to contain the turbulence caused by the wild fluctuations in exchange rates, Europe’s leaders set course toward a half-baked monetary union. 

When the Crash of 2008 hit, Europe’s monetary union was hopelessly ill-prepared to absorb the shockwaves. Worse still, our leaders went into radical denial of the crisis’ nature (treating it as a debt crisis that could be treated by universalised austerity). Thus, European integration went into reverse. Central to this drama was the European Periphery’s “…insincere acceptance…of impossible conditions which it was not intended to carry out” and Northern Europe’s imposition of these conditions which it was “not entitled to exact” [click here for the unexpected source of these quotes].  

Thus a continent united by different languages was divided by a common currency.

Below the reader will find many posts that appeared on this site over the past years as comments on the unfolding crisis. But before this comprehensive list, some highlights first.