Paul Krugman is an Nobel prize winning economist. However that does not entitle him to be correct on the Eurozone. Since he has always been wrong when it comes to that subject and from what I can gather the economics in recession times. While Greece, Italy and Spain are the biggest problems in the Eurozoen. With Greece being a rather big issue. It is important to release the fact that Greece is in fact small part of Eurozone as a whole. So any and all effects the issues they are having are not going to influence the Eurozone in any great manner. Regardless of what hysterical media has been reporting since the debt crises in the Eurozone started in the year 2009. As it has been come evidence that hysterical media making self fulling claims by manipulating the market with hysterical news, that do often not have any basic in fact. This manipulation of the fact is then later supported by people like Paul Krugman. How either willing like, or unwilling takes part in this manipulation. My hypothesis on this matter (as I do not have any access to any hard evidence as of yet) suggests that large bank might be behind this in order to increase there profits and increase there own gain at the same time. I call it profiteering in recession times. But that is just me.
As for Paul Krugman and the Eurozone. It is clear that most, if not all of his claims about the Eurozone (:Euro) are wrong. From best to my knowledge, none of his claims or predictions about the Euro has come true over the past few years. This is not a surprice, as Paul Krugman as so many economists in the U.S and the U.K are either U.S dollar people, or U.K pound people. This group of people normally, without any good reason or fact. Oppose the Eurozone (and the euro) on this rather loose grounds. They have now been doing it for past 9 years or so since the Eurozone was launched in EU. The economic recession has been pure goldmine for this people. Since it was followed by debt crises in part of the Eurozone.
What Paul Krugman fails to understand is this. There is great political will to get out of this Eurozone debt crises, as has already been shown. This is also not the first economic crises countries in Europe have seen over the past decades. But this is the first economic crises since the Euro was introduced. So it is clear there it would be issues and unforeseen problems. But any ideas of collapse of the Eurozone are unfunded and not based on any fact that I am aware of. It is all just in dreams of economics like Paul Krugman and in politicians how oppose the European Union and the Eurozone. As it is clear that collapse of the largest economic power in the world would not only mean major problems in Europe. But also in the U.S, China and in other parts of the world. In fact, I do not think that any part of the world would go unaffected by such economic collapse. So any such ideas are crazy and should be dismissed as such. It is also clear that Greece is not going to leave the Eurozone. That would make current recession that is taking place in Greece look like a economic good times.
If the Eurozone and European Union falls. I hope that Paul Krugman can find a nice paper box to life in after the crash. Because that is where he is going to end is such economic collapse would take place.
News about this claims (some might be behind paywall).
Lunch with the FT: Paul Krugman (ft.com)
Vince Cable: ‘Don’t lecture eurozone’ (BBC News)
Lloyd’s ‘has plans for euro collapse’ (BBC News)