Germany and the euro
- 4 September 2011 10:07124603
- Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
4 September 2011 15:23124656euro scare mongering at its best. - 4 September 2011 15:57124662The euro was supposed to cure all the ills of a diverse range of countries' economies but the medicine is killing the patients one by one, starting with the weakest. A failed experiment, I wonder which Euro-politician will be the first to have the courage to pull the plug.I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson
- Ross Miller
- Location: London Road, Dover
- Registered: 17 Sep 2008
- Posts: 3,706
4 September 2011 15:57124663No Brian - the sad bitter twinge of reality dawning on the heartland of the Euro.
The reality is that the core Euro countries cannot continue to bail out the profligate southern states - whilst it may be politically expedient for the EU - it is progressively becoming political suicide fro Merkel and Sarkozy - the Euro is sadly undergoing its death throes."Dream as if you'll live forever. Live as if you'll die today." - James Dean
"Being deeply loved by someone gives you strength,
While loving someone deeply gives you courage" - Laozi - Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
4 September 2011 16:12124670ross,the euro is ok,good sound money system,its down to individul countrys to run there finances in proper fashion rather than rely on those well to do countrys to bail them out every 5 minutes.sadly some countrys ie italy and greese seem to be some what corupt to say the least. - 4 September 2011 16:20124675No Brian, some countries like the ones you mention need the ability to set higher interest rates and accept currency depreciation to survive. In the Euro they can't so they won't survive.I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson
- 4 September 2011 16:23124676Nonsense Brian - but you would say that.
The trouble is that the countries can't run themselves Brian, they are tied by tight rules from EU and that's the problem, one size does not fit all.
Roger - Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
4 September 2011 16:39124677roger/peter,if you read and understood my post you might see sence.i will repeat what said once again.
the euro is fine as a currency,which is quite strong at the moment.
countrys within the eurozone,some are weaker than others and thats were the problem stems from.
the usa,after being down graded from a triple a rating is losing its way.
so putting it in perspective we have more worries from america than the eurozone.facts and figures do back this up. - 4 September 2011 17:36124688Brian, one cannot erase history. Some countries, actually all of them, that are now in the eurozone, had differing ways of countering deficits and making the ends meet when calculating their annual state budget.
Some, such as Greece and Italy, and the eastern states (after leaving the USSR/Warsaw Pact) would print more money, causing some inflation locally and a devaluation of their currency on the international exchange market.
However, they managed in this way to keep afloat.
That's all impossible with the euro, so some countries, such as Germany and France, are being financially dried out in order to supply loans to the weaker eurozone states, which in turn have to introduce severe austerity at home to pay back even just the interest on their sovereign debt.
This means that people all over Europe are simply going bankrupt - private bankruptcy - together with their country, and firms and companies are going into administration more than ever.
Home evictions for failure to pay the mortgage are increasing in Britain and all over Europe.
Brian, it's over for the EU!
The EU is clinically dead! It died last year
!Chanters, Drums and Drones Potty Time http://youtu.be/99fMqpjnXYA
Rule Britannia!
Kent First http://youtu.be/04F3mAP3fV4 Keep banging on http://youtu.be/qYCU_SKmkGQ - Keith Sansum1
- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
4 September 2011 17:39124690alexander;
i realise thats what you want
but its a long way offALL POSTS ARE MY OWN PERSONAL VIEWS - 4 September 2011 18:53124701There is a big difference between the EU - the body and the EURO - the currency.
Roger - 4 September 2011 19:03124703not according to some roger, ms merkel publicly stated not long ago that the demise of the euro would lead to the collapse of the union.
the whole thing has always been political rather pragmatic. - 4 September 2011 19:08124704Lots of sense on this thread except from one inveterate europhile. I suggest that the euro should be abolished, stronger countries can readopt their old currencies. The weaker ones should band together and set up a new weak version of the euro. I suggest it should be called the Brian.I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson
- 4 September 2011 21:11124724not sure who you are referring to as inveterate peter.
it is a condition of membership here that everyone has a backbone. - 5 September 2011 06:27124728Really Howard ??
Roger - 5 September 2011 06:50124734We want some evidence, Howard!!
- Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
5 September 2011 07:39124738i have got a backbone the last time i looked,and thats more than i can say for this goverment.
peter,as for renaming the euro brian,well thats rediculas.its like saying that the conservatives rebranding its self as the labour party. - 5 September 2011 08:14124746i am impressed brian, i can never see my backbone even using mirrors?
- 5 September 2011 08:51124760In the USA - a monetary union - things did not always go smoothly:
"During the first 150 years of the U.S. monetary union, regional battles over monetary policy and institutions were widespread. Simply put, what was beneficial monetary policy for one region was not necessarily beneficial for another".
"So, how long did it take the United States to become an optimal currency area? .....a reasonable minimum may be 150 years."
(National Bureau of Economic Research)
In the early days of US monetary union there were frequent calls for old currencies to be resurrected in individual states as they suffered from economic 'shocks' and maybe this is what we are witnessing; birth pains rather than the death rattle? - 5 September 2011 09:02124762You cannot liken the US experience to that of the EU. The more complex and sophisticated economy of today makes it a lot more difficult. Besides, full monetary and economic union, in the manner of the USA, is one way forward for the Eurozone. Not the right way, better they break up into 2 or 3 currency zones, but it is a way forward. What is certain is that the current system does not work.