There are not true reasons for the financial crisis in Europe

The explanation is very simple:

It is because the governments have the sovereign faculty to issue all the money that their economies need. There are neither political nor technical limits to issue money. 

There is a big difference between the things that man can decide autonomously and the things that not; for example, man can create money autonomously but man cannot create natural resources like water and petroleum.

Money has not an intrinsic value neither back in gold.

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Which is the backrest of the dollar?

Which is the support of the euro?

The unique back of those currencies is the faith of the people that accept them like international mean of payment, nothing else.

All the gold that exists in the world is not sufficient to backing the trillions of dollars, euro and other currencies that circulate in the world. Therefore the back in gold of the currencies is a lie.

There is other key question:

Which is the true value of gold?

The answer is none. You cannot eat neither drink gold.

Gold has a restricted use: a) like instrument of reserve of the central banks of the countries and b) in jewelry and too few industrial processes.

So that the support of the currencies is a fallacy; the currencies do not have any true material support.

In consequence, man, in this case the governments do not have limitations to issuing their own currencies.

Like Germany and France dominate the European Central Bank, they impose fiscal and financial conditions that the rest of the Eurozone countries cannot comply and, moreover, they limit the emission of new money; so they dominate the situation.

But they cannot dominate England because this country keep the sovereign domain of its currency, the sterling pound and can to issue all the money that need. Three months ago the Bank of England recognized that the austerity is a mistake and issued thousands of millions of sterling pounds to increase the liquidity of the country and so avoid the recession.

The other European countries that depend of the euro are prisoners of the European Central Bank, in other words, prisoners of  Germany’s and France’s governments.

The European financial crisis is an artificial crisis provoked by the European Central Bank, the International Monetary Fund and the governments of Germany and France, nothing else.