Europe is in the long game of a United States of Europe and the Greek crisis is one sub-game in the time continuum, but the sub-game to watch in order to define a Nash Equilibrium is a Euro currency crisis…such a crisis has not happended although the Euro at May 2012 is devaluing against Sterling and US dollar. I had made a similar point in an interview on Bloomberg London last May 2012 [available on my webpage]. A Euro currency crisis will dictate the elements of a final solution [whether Greece departs from the Eurozone]…a devaluing Euro now plays to Germany’s strengthens as an exporter……so we need to look at the Euro as a currency, its stability, its continued credibility as an international currency; if it continues to devalue and risks the United States of Europe then we could observe IMF and G20 exchange intervention [check the Yen crisis in 2011] so it is the Euro currency signals to observe as a critical pattern in order to find an equilibrium and thus comment on the present…For the moment the Euro currency is stable in a devaluing mode, the Greek crisis is a sub-game, of secondary importance to the primacy of the Euro and United States of Europe.
Tags: Greek crisis, sub-games, United States of Europe