Eurozone Collapse....then Depression

We have been trying to figure out what exactly it may mean to the world if the Eurozone collapses.

This article from the Vancouver Sun spells out a pretty grim hypothesis.

The collapse of the eurozone would cause a crash that would instantly wipe out half of the value of Europe's economy, plunging the continent into a depression as deep as the 1930s slump, the president of the European Commission has warned.

Jose Manuel Barroso issued his chilling warning as France began diplomatic overtures to create a eurozone vanguard, potentially with fewer than the 17 existing members of the single currency.

Mr Barroso said that if the euro area of the 17 member states or the wider 27-country EU broke apart the estimated initial cost would be up to 50 per cent of European gross domestic product. "It would jeopardize the future prosperity of the next generation. That is the threat that hangs over us," he said.

The result of such an economic shock would be emergence of extremism and divisions within Europe, the former Portuguese prime minister told his German audience.

"Populism and sometimes even nationalism raises its head across our continent," he said. "This is ignoring the global realities as well as our common history that teaches us that this continent is simply too small and too inter-dependent for us to stand apart, to turn our backs to each other."

Read more: http://www.vancouversun.com/business/Eurozone+collapse+will+send+continent+into+depression/5686940/story.html#ixzz1dR9fzTle

Ouch!!  That sounds serious!! Depression and then nationalism....which usually leads to war on the European Continent.

There will be wars.....