The main problem I do not see between the Asian powers. China will rise further economically. It will invest heavily in its military. Japan will follow to some extent. But even if these nations do not like each other, they depent economically on each other, may build alliances among themselves and with the US, but no real war will come out of that.
When I was in China 20 to 30 years ago I always heard the Chinese say that under all circumstances they wanted to avoid the mistakes of Germany and Japan to confront the US as an enemy. Whether these mistakes were real or not, their intentions not to do this were. I am convinced that this strategic intention still stands. Nevertheless, China will build a denial access military capability for it coastal waters of a few hundred miles. Some little blue navy may follow. But the US is still a few decades ahead militarily. So, where is the danger? It is only in the foreseeable scenario that the US cannot accept that its worldwide hegemony is militarily compromised by the fully justified Chinese military build up in the few hundred miles off the Chinese coast. So, its all in the hands of the US.

You describe the situation in the EU correctly as: "Priorities at the nation-state continue to dominate continental priorities. Member states of the European Union continue to insist that certain areas no limited to monetary policy and including defence and foreign policy remain sovereign. - See more at: http://www.economonitor.com/blog/2013/11/germany-...

You miss the facts when saying: "This is why the European Central Bank is particularly commanded by Germany, reason why the French are particularly “méfiant” and always try to interfere with the apparently independent monetary policy of the European Central Bank, too focused on inflation control applying the old manual of the Bundesbank. - See more at: http://www.economonitor.com/blog/2013/11/germany-....
Fact is that the ECB is providing fiscal financing against ist statutes for the ailing Euro countries.

You are wrong in saying:"The spread on the Eurobonds is likely to be higher than that on the Deutsche Bund but significantly lower than spreads on Greek, Italian, Portuguese or Spanish Debt. This move forward would allow southern Europe to breathe normally - See more at: http://www.economonitor.com/blog/2013/11/germany-....
"Breathing normally" cannot be defined without looking at the 3 to 5 times higher borrowing rates these countries had before the introduction of the Euro.

Correctly you say that the Euro zone is in very bad shape. But why should Germany be so stupid to guarantee or even pay the debts of the ailing countries, only to see that after collecting such benefits their egoism will continue without leading to "Mundell`s Optimum Currency Area".
The solidarity you ask from Germany makes only sense if the ailing countries fulfill the prerequisite to restructure to improve their competitiveness, so that "Mundell`s Optimum Currency Area" assured to happen.
That is exactly the present policy of Germany.

All these proposals may or may not save the Euro. But almost all the risks involved can finally end up as cost for Germany. To follow these proposals Germany must deliver upfront without knowing whether the periphery will deliver its structural reforms later and whether we will get sort of a European union, so as to make the Euro viable. Nobody knows which costs can be more astronomical for Germany: to take over all risks of almost the total rest of the Euro zone or to let it go its way. If we could be sure that we get a united Euro zone for taking all risks then it would be worth while. But without being sure to get that it would be irresponsible of the German government.

Way no. 4 to increase the competitiveness of the states in the periphery against Germany would be, that Germany introduce export taxes varying from industry to industry and country to country. It would also help Germany fiscally to finance support for the Euro zone.

Print any amount of Euros, throw it upon first demand at states and banks, lie to people that inflation will be neither imminent nor be high at a later time, it robs all people with savings, salaries and retirement payments, it will come into the hands of those who handle already tremendous amounts of finance and let them amass more of it, AND it will NOT solve any structural problems in any of those countries which are in need of reforms.

""The establishment view in Europe is that the problem is too much debt (by profligate countries like Greece) and, therefore, that the solution must involve (a) austerity and (b) structural reforms (which increase the competitiveness of the weaker states). "" Here, this guy is abolutely right. He is also right in that the desaster for Greece is imminent. He would have been right, if he had said that growth would help to solve the problem.
But he is absolutely wrong in implying, that Greece can be saved without very profound structural reforms and changes in behaviour of the political class or that throwing more money at Greece would solve the problem. It is purely emotional and aberrant to complain and call it blackmail that anybody considering to lend money out to Greece or any other borrower has conditions under which he is willing to lend this money.

Tom is correct, except that what Peter and Simon say will FINALLY become true.

Bullshit: "In the period before the euro, they would devalue the Deutschmark so that they could increase the sales of their products to their neighbors".
No, the German currency had the habit to appreciate against other currencies.

The Euro-zone disequilibriums can be fixed easier with Greece outside than inside the Euro-zone. Ringfencing has to be done in any case. Greek people have lived with foreign money/credits much above their own financial means and in addition have been "robbed" by their economical elites who have brought most of their bounty out of Greece already, the latter being deplorable for the Greek poeple. But there is nothing wrong, even if painful, if the Greek people have to live in future by more or less what are their own financial means.

Because the 4 billion they gain in interest each year are peanuts compared to their funding requirements.