Possible Euro Failure

In the article "Is The Euro About to Capsize?" by Laurence Knight, the author argues that the Euro is at this point in grave danger of failing as a currency. Specifically, Knight attributes this coming failure to the positive feedback cycle that government bonds create. By leveraging themselves increasingly more and more, governments are not in fact helping to avert the crisis, but rather building up its severity.

The other problem is that due to the Euro being used amongst governments of different economic strength, there is a tendency to buy bonds from certain governments such as France or Germany. The bonds from countries such as Greece are ignored, thus not giving the Greek government any way of raising capital. What this potential cycle could create is a move towards not exactly income inequality, but greater international economic inequality between nations such as Greece and Italy and those such as France and Germany.

http://www.bbc.co.uk/news/business-15592197