Here we go again, European Union in trouble.

Last time Europe and the European Union (EU) were in the spotlight revolved around Greece's spiraling inability to service it's debt.  I remember thinking back when the question of what to do with Greece that Europe only had one real option.  You see, Greece as it turns out not only lied about their accounting practices thereby making their entire entry into the EU questionable - but their finances really exposed a socialist government on the brink of a financial disaster.  But what really made the choice obvious, was precedent.  That is to say, if the collective European governments decide to burden the cost of Greece then any additional country falling in the same predicament would demand identical treatment.  Germany and other powerful economic of Europe had to tell Greece to leave the EU, go back to their currency and then take care of their debts and responsibility - declare bankruptcy if need be.  Why take American and European taxpayer money and cover up structure imbalances?  For what purpose?  To prevent a contagion?  If so, then the contagion is spreading anyway.

It looks like the appetite for Irish and Portuguese debt has lurched into the spotlight and it is now on Bernanke of Europe, Jean-Claude Trichet to deliver the soothing medicine of quantitative easing. 

Just six months after he threw out his rule book to prevent Greece’s debt crisis from splintering the euro area, the 67-year old Frenchman may again be the only policy maker able to prevent the collapse in Irish and Portuguese bonds from spreading. That may require him to ignore opposition from Bundesbank President Axel Weber to the ECB’s bond-buying program and expand purchases of sovereign assets, according to Citigroup Inc. and Royal Bank of Scotland Group Plc.

This is no coincidence that Germany is having a serious issue with this policy, because being the strongest economy in Europe the bailout considered by Trichet is invariably on the shoulders of the German taxpayer.  

If Ireland and Portugal get bailed out, it will be only a matter of time until Spain and Italy come asking for help.  The PIIGS as they are referred to all suffer from similar structural issues and the Euro, their currency at the moment will be significantly compromised if instead of significant reform, the European Central Bank chooses bailout. 

Ironically, this will help strengthen the dollar as the Western world braces for a race to the bottom with the Euro in danger.  For two years now we have accepted and ingrained the idea that all problems, regardless of size, can be ameliorated if sufficient money can be gathered.  Whether it be the Governments performing the bailout or Central Banks diluting their currency, the idea is the same.  That is, the population of the respective country assumes the risk upon itself and compromises their own private wealth to save the world.  The socialization of losses and failure must stop and it must stop by choice, because going down this path will invariably lead to the destruction of our way of life.   Why can't we act rationally while we still have time, instead of purposely heading into civil revolt?  Why oh why?