"The idea that the euro has 'failed' is dangerously naive. The euro is doing exactly what its progenitor — and the wealthy 1%-ers who adopted it — predicted and planned for it to do." So wrote Greg Palast in yesterday's London Guardian, noting that the progenitor, Robert Mundell, saw the euro as "a weapon that would blow away government rules and labor regulations." "I knew him [Mundell] through his connection to my [U. of] Chicago professor, Milton Friedman," Palast added.
Palast described Mundell's view thusly: "The euro would really do its work when crises hit, Mundell explained. Removing a government's control over currency would prevent nasty little elected officials from using Keynesian monetary and fiscal juice to pull a nation out of recession. 'It puts monetary policy out of the reach of politicians,' he said. '[And] without fiscal policy, the only way nations can keep jobs is by the competitive reduction of rules on business.' He cited labor laws, environmental regulations and, of course, taxes. All would be flushed away by the euro. Democracy would not be allowed to interfere with the marketplace — or the plumbing.
Palast continued: "Mundell explained to me that, in fact, the euro is of a piece with Reaganomics: 'Monetary discipline forces fiscal discipline on the politicians as well.' And when crises arise, economically disarmed nations have little to do but wipe away government regulations wholesale, privatize state industries en masse, slash taxes and send the European welfare state down the drain."
The term "structural reforms" is "a euphemism for worker-crushing schemes," Palast wrote, adding that the "currency union is class war by other means." "Far from failing, the euro, which was Mundell's baby, has succeeded probably beyond its progenitor's wildest dreams."