Snow Says Euro Faces ‘Tough’ Survival Without Budget (Update1)

http://www.bloomberg.com/apps/news?pid=20601109&sid=aaBB6Ps4jO5U&pos=15

‘Hyperinflation’

“It’s a really serious problem, and you get the risk of hyperinflation, governments printing money to pay their debts, a race to see who can print first to get ahead of the others, so their currency has more purchasing power than their neighbors’,” he said. “It’s not a pretty picture. All the other paper trades off the government paper, once government paper gets into default condition, what happens to the whole debt market, the fixed-income market?”

“How do they get competitive? They lower their own internal cost structure, it’s the only option available to them, he said. “They don’t have the ability to get a more competitive exchange rate, so they’ve got to do it internally. The question is, is there the political will?”