European nations were not based on race.
That isn't close to true. If you define "race" so broadly that all whites are one race, then European nations are all one race, so not based on race. If you define it as ethnicity, then England, for most of a thousand years, was a mix of Celts...
I'm afraid I don't have an opinion on those questions. I don't do macro, so can't predict what my father's view would have been on a situation that came into existence when he was no longer around to comment on it.
Source of information on M Friedman
If you want to find out what Milton Friedman believed, reading what Rothbard says Milton Friedman believes is not a very sensible tactic, any more than it would be sensible to find out what libertarians believe by reading articles by people hostile to...
Not a very accurate description of what I actually said. See:
http://www.blogger.com/comment.g?blogID=19727420&postID=606827671930081870
Mine is the third comment in the thread; I expanded on it in a later comment.