Thomas Pascoe, who writes on matters financial for
The Telegraph (U.K.) has a gloomy column suggesting that economic conditions in today's Europe resemble those there in the 1930s. See his reasoning:
As in the early 1930s, the decision on the fate of financial order on the continent rests with debtor countries who admit no guilt for their debt. And, once again, faith is being placed in the treaty system to maintain order. To push the analogy further, I believe that the dominant form of political organisation over the next decade will be nationalism. We are one charismatic leader away from a complete re-ordering of the continent.
The article draws some uncomfortable parallels; Pascoe reminds us of Germany's default on WW I reparations and concludes:
A great deal now depends on whether a man will emerge somewhere in Europe capable of pushing nervous and resentful electorates over the precipice to outright default.
I would not bet against it.
