The result of the European crisis will be the annihilation of Europe’s political class, just as surely as Stalin liquidated the kulaks. And it’s a good thing, too; as I reported this morning in my “Spengler” essay at Asia Times Online, an Italian national bankruptcy provides an opportunity for thousands of first-rate, family-owned Italian corporations to emerge from the quasi-underground existence to which Italian official corruption has condemned them. That is why everything seems to difficult: the stupid Eurocrats cannot conceive of an Italian bankruptcy, which might push the country out of the Eurozone. And the Berlusconi’s and Papandreou’s of the world can conceive of the dismantling of the corrupt public-private nexis that strangles their countries like a parasitic vine, because that is there reason for being there in the first place.
Greece and Italy have to be broken open from the outside. They do not have the political or moral resources to save themselves. When it is all over, ownership of major public assets will pass to China, sovereign wealth funds, North Americans, or others. A large part of the Greek and Italian populations will feel like fleas on a dead dog. But the overall result will be salubrious.