The good times for American investors in European markets have run their course.

The financial professionals do not seem able to explain how they once again were surprised by the severity of the downturn.

The central banks dug deep into their bag of financial tricks to conjure up a recovery. They seem to have run out of stunts. The magic of creating money out of thin air hasn't worked, and the European economies are looking to be in a perpetual decline.

But why?

Both supporters and critics of the policies promoted by the European governments agree that fundamental financial restructuring is needed. They also agree that it is only a matter of manipulating monetary and fiscal policy.

However, they are wrong.

As the comedian George Carlin once remarked, "Proof of the Pudding is in the tasting." Here the proof of governmental and financial industry manipulations is that the economy is heading into the abyss.

The fundamental flaw in their thinking is failing to understand two things. The context of what circumstances made the European economies successful and what circumstances have changed to create economic failure.

European success resulted from having ability for its institutions and people to evolve and adapt to accommodate change and innovation. That capability was a fabric woven together by diverse people from the threads of commonly accepted moral principles.

These moral principles are referred to Judeo-Christian beliefs although clearly there are important philosophical, moral precepts from the other major religions and philosophies of the world.

By being anchored in principles, the Europeans --and others similarly situated--have able to develop and change to advance as a political and religious society, and, economically successful.

Contrary to the commonly accepted moral order pervasive in Europe, Islam is unique among the major creeds of the world because it is not based on any moral principles.

Islamic nations are not models of economic success

Islam is fundamentally a secular political system which is based on absolute adherence to the 7th century AD dictates of its founder.

The Sharia law then is the law now. No change. Unlike all other belief systems, there has been no evolution, advancement, or progress in its customs or practices.

The danger of having masses of Muslims accepted into Europe was expressed by many people over the years. I recall reading two books by Oriana Fallaci (Who wrote "Force of Reason" and "The Rage and The Pride" among many well worth reading books.)

As she has said, "The Muslims refuse our culture and try to impose their culture on us. I reject them and this is not only my duty toward my culture — it is toward my values, my principles, my civilization."

"Europe is no longer Europe; it is Eurabia, a colony of Islam where the Islamic invasion does not proceed in the physical sense, but also in a mental and cultural sense."

"The moment you give up your principles, and your values, you are dead, your culture is dead, your civilization is dead. Period."

The impact of culture on an economy is hard to quantify. But it is, ultimately, the all important quality that makes the difference between success and failure.

Europe — and all Western cultures — is based on the recognition of personal liberty, tolerance for others, and limitations on government actions.

As it is, Europe has lost so much of its moral strength it is easily vulnerable to be taken over merely by the slight exertion of the unified political force of greater and greater numbers of Islamic followers.

As that occurs, Europe becomes just another desperate place of unyielding economic hardship and personal servitude. Just like the rest of the Muslim countries of today.

Whether it is politically correct to say or not, the risk facing investors is that the European culture and institutions are weak and fragmenting. There is reasonable doubt as to Europe's will or capability to resist the Muslim hordes now forcing their way in over its borders.

However unbelievable it may be Europe as a modern Western state is facing economic death by demographics.