And as if on cue I am back to questioning this type of assertion from Tyler Cowen
Do not think that Germany has merely to waive a magic wand, or incur a one-time cost, to set things right in the eurozone. Any “set things right” action on Germany’s part is, one way or another, a form of doubling down. If it fails it means a bigger eurozone implosion in the future than would happen now, including much higher costs for Germany. The choice is not “German action vs. doom now,” it is “German action and some chance of even bigger doom later on vs. doom now.” That’s a tough call. The Germans understand that one better than do most of the bloggers I’ve been reading on the topic.
We want to be explicit about this. What exactly is the way that it gets worse? Maybe Tyler has a scenario, but the worse case endgame for a Euro failure is collapse of the global capitalist system, the political collapse of the West and the end of the Enlightenment.
That’s fairly bad as things go and it could indeed happen. Perhaps, the risk of this happening increases in the future but I don’t see how off hand. If nothing else a richer and more culturally Western China serves as a bulwark against systemic collapse of the Western Project.