China'S Five Generation And Ten Countries Can Be A Warning For The Euro Zone

German Chancellor Angela Merkel and ECB President Mario Delagi may not know much about China in tenth Century, but then China's

Before 900 AD, a great China.

Such a development was threatened at the end of the Tang Dynasty.

In 907 ad, the Tang Empire collapsed into many small countries struggling with each other. After the 50 years of turmoil, the five generation and ten countries were well known.

These new countries, each equivalent to a larger European country, compete for more from the limited volume of copper.

Rich countries store copper; poor countries use cheap metals, such as lead and iron, to make money.

All these countries carry out

When another unified leader Zhao Kuangyin emerged, the economy began to recover.

He was the first emperor in the Song Dynasty.

Zhao Kuangyin set up enough credibility in the next century, so that the world's first banknote was issued.

The regional trade imbalance still seems to persist in the Song Dynasty, but the central government can avoid the problem becoming a political division.

Zhao Kuangyin stabilized the economy, for example, as Erwin has said before: "the internal instability factor is

This principle applies to Europe in the twenty-first Century.

Any new national currency separated from a single monetary system is easier to devalue than the euro.

The economic efforts made in larger alliances are more rewarding than they are when they are detached from the single market.

Apart from the monetary union supported by political forces, governments in trouble will be more constrained by creditors outside the alliance.

Europe may not need their Zhao Kuangyin or any kind of Empire, but they should not lose the benefits of solidarity for the sake of their political temporary comfort.