Darn Nice Corner of the World

Here is James Kunstler's happy contribution to the news analysis of the day:

Those who run Europe have three choices: to bail out Greece, to let Greece sink (into a desperate economic depression), or to pretend to bail out Greece. The sad truth of the situation is that there is not enough productive activity in Europe to really support all the members of the European Union in the style they're accustomed to. (Which also happens to be true of the USA and its constituent states, but you probably know that already.)

Europe is a sad case, really poignant, because it became such a darn nice corner of the world after the convulsions of the mid 20th century. Who, for instance, can spend two weeks walking the lovely ancient streets of Bruges or Orvieto, or Lisbon and not fall to their knees in overwhelming despair on return to the slum of Kennedy Airport? Europe rebuilt itself so beautifully after the war while America became a utopia of overfed clowns riding in clown cars around the plasticized cartoon outskirts of our ruined cities. Europe had wonderful public transit while America let its railroads rot away. European men went about their business in grown-up clothing while Americans men dressed like five-year-olds and got flames tattooed on their necks as though contemplating a barbarian invasion of Akron, Ohio.

But history, that prankster, in the awful melodrama of industrial capital's demise, now seems to have backed lovely, reformed Europe into a corner as an early object-lesson in the agonies of de-complexifying and re-localization. The monetary union seemed like a great idea as long as the members appeared to play straight in the revolving credit racket. Europe had never been so peaceful and happy for so long. But the financial crisis has opened a yawning black hole in the operating system, and into it has been sucked all the elaborately constructed abstract markers of wealth -- in the form of credit-gone-bad -- and now the sad truth is that there really isn't enough wealth to go around. Places like Greece, Portugal, Spain, and Ireland have to return to their previous condition as narcoleptic economic backwaters. Either that or Germans and Frenchmen have to work an extra seventeen hours a week to prop these places up, and somehow that seems unlikely to happen.

Europe has plenty of other things to worry about in the bigger picture. For one, where are they supposing to get the oil and natural gas they need to keep things running? Who's got any? Well, The UK once had quite bit but they pissed it away building freeways and suburbs. Norway, with around one-twelfth the UK's population, still has a bit of oil and gas left, but not enough to keep the rest of the gang in Europe humming. Romania has, like, a tablespoon of oil left, maybe. For the moment, Europe is getting its fossil fuels from Russia and the usual suspects in the oil export world. Bottom line: Europe can become Russia's energy bitch (and only for a little while because Russia is getting tapped out too), or it can compete with China, Japan, India, and the USA for whatever comes out of the Middle East, Africa, and Venezuela.

I have to admit that this financial crisis in Europe has taken me by surprise. It will be interesting to see what twists and turns it takes. But I am beginning to see how the unique structure of Europe, with its more decentralized power structure, can be a severe liability in things like finance. 

Obviously, I think the European Union is not going to expand any larger than it already is, for economic reasons.  Germany and France don't need any other European basket cases to take care of.  NATO, on the other hand, might continue to expand since the US drives that expansion for strategic purposes.

Update:   Here is Paul Krugman's take on the Euro crisis, which in essence says that Europe was not ready politically--not unified enough--for a common currency.