Perhaps it’s time that Europe took a page out of the American playbook — devaluing the euro could ease Europe’s economic problems, according to BNP Paribas:
Germany and the Netherlands are probably the only European countries which could afford to transfer funds, but it seems to be politically suicidal for both governments to agree to a bailout. It becomes increasingly clear that a sharp decline of the EUR (compensating Germany and Holland via export profitability) could be part of a European solution.
Thus you’re compensating Germany with an export boost for its potential cost of bailing out weaker nations. The beauty of this weaker euro solution is that Europe’s debt debacle may have already inadvertently made it even more likely to happen. The only challenge is to devalue the euro faster than America can devalue its own dollar, to which the deadly Chinese yuan remains hitched.