Upon the death of Nero (54-68AD), the Roman Empire was at a crossroads. The last member of the Julio-Claudian bloodline was dead. Many hoped for the return of the Republic. But the old Oligarchs had been mostly killed more than 72 years before.
Otho and Vitellius sought to grab the throne. A third general Vespasian made his move and seized power. Then the move of separatists unfolded. This was the opportunity to break away from Rome.
The Jews made their play to get out of the Roman Empire. They issued their own coinage and believed with Nero dead, now was their moment in history.
Vespasian was forced to invade Judea. He had no choice. If Israel separated, then others would follow. Vespasian invaded and destroyed their temple. The Arch of his son Titus stands at the edge of the Roman Forum and it shows the Romans carrying the spoils from Judea back to Rome. This was displayed on the Arch because this act held Rome together. Had Judea separated, everyone else would break away.
Brussels has reached that same Vespasian Moment with the Greek elections. They will now try to bribe Greece to stay for do not believe for an instant that they claim the Euro does not need Greece – Greece needs the Euro. Brussels needs Greece for what they should fear is its departure and you will see its economy start to revive. When Britain abandoned the gold standard, it was the FIRST to recover in the Great Depression and that was noticed by Roosevelt who ended the austerity policies of the USA.
What does austerity do? It supports the debt holders at the expense of the economy. This is why Europe is doomed and now pouring in new money cannot possibly overcome the destruction to the capacity to produce. They have to eliminate taxation and reduce regulation. You cannot create new money but raise taxes and regulation simultaneously.
If the Greeks choose freedom and reject the behind-the-scene offers to stay with debt reductions and 100 year interest free loans to keep jobs in Brussels, then others will follow. Scotland will eventually break away from England and Spain will also break apart. Italy will leave the Euro at the end of this affair.
Brussels has reached its Vespasian Moment and they know it. The question is how hard do they fight to keep it together?
