Why were we so sure the Euro would fail (on the assumption that Mercantilism doesn't equate to success)? For the simple reason that a monetary union divorced from a fiscal union can't work for all. It can, viz. Mercantilism, work for the rich countries, but at the expense of the poor countries. The Euro gave the Germans, and the French a bit less, the ability to export into the southern poor countries and get paid in a German controlled currency. Get it? If you keep track of the quarterlies here in the US, the weeping and wailing about all those other countries to which American multi-nationals export fiddling their currencies, is a major topic. Avoidance of such reciprocal power is what the Euro gave the Northerners. And they won't stand for the Greeks crying foul. That the poor southern countries bought the bill of goods sold by the Northerners and their own stupid politicians doesn't change the calculus.
Italy, or Spain (toss a Euro), is next in Germany's cross-hairs.
Now today's reporting gives us this:
In Germany especially, the fear is that providing new loans to Greece without extracting more spending cuts represents a fateful step toward a so-called transfer union, with wealthier nations providing handouts to Greece and other weaker countries. "If a small country can blackmail the other members into a transfer union without conditions and controls, the euro cannot survive," said Adam Lerrick, a sovereign debt expert at the American Enterprise Institute, a research organization based in Washington.
Too bad the writer, or editor, didn't tell the readers that the AEI is about as right wingnut as it gets. The AEI, as Germany, stands for economic exploitation of the weak. The hypocrisy of the AEI, and American right wingnuts generally, is that they come from the southern dependent states of America. Were the US only a monetary sovereign, like the Euro, all those Red states sucking at the teat of DC would get nothing. The developed North would be grinding the poor and stupid South under its bootheel. As should have happened after the Civil War. The losers have fiddled the electoral system to take control of the money spigot in Washington, sending moolah by the freightcar load to themselves. All while keeping most of their citizens ill fed, ill educated, and ill doctored.
And propagandizing poor whites that their problems stem not from the 1% taking advantage, but from equally poor darker folks. What happened in South Carolina isn't an outlier, but the purpose.