Quizzes & Puzzles51 mins ago
Disintgration Of The Euro, What's Not To Like?
15 Answers
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In the end a soft currency is never going to survive so why waste any energy trying to save it?
In the end a soft currency is never going to survive so why waste any energy trying to save it?
Answers
1 to 15 of 15
"...because many people like it, are used to it, and have benefited by it presumably." The only people to have substantiall
16:48 Fri 24th Nov 2017
"...because many people like it, are used to it, and have benefited by it presumably."
The only people to have substantially benefitted from it are the Germans. The euro was designed for the Germans. It gave other nations the ability to buy their goods buy providing them with far too many euros for their old currencies and they’ve done so copiously since the single currency’s introduction. So much of an advantage has the euro given to the Germans that they have been running a current account surplus averaging around 8% for many years (well beyond EU rules and which would see sanctions imposed on any other country fortunate enough to do the same).
The euro has condemned a generation of young people in the peripheral EU countries to a lifetime of unemployment (43% in Greece; 38% in Spain; 35% in Italy; four more countries over 25%; the average for the Eurozone as a whole approaching 20%; but just 6% in Germany). These countries are locked into an exchange rate and interest rate prison which gives them no tools to deal with their relevant lack of competitiveness. The single currency is probably the biggest political error of modern times and has caused widespread hardship among millions of the people using it (except the Germans). But the euromaniacs will go to any lengths to prop it up because it is one of their two most glorious achievements. Liking it because you don’t have to change your money when you go on holiday is just about the most asinine explanation I have ever heard. When it eventually collapses (which it will whether Mr Trump talks it down or not) there will be chaos. The euromaniacs need to prepare for an orderly demise of their wretched currency but there is no chance whatsoever of that.
The only people to have substantially benefitted from it are the Germans. The euro was designed for the Germans. It gave other nations the ability to buy their goods buy providing them with far too many euros for their old currencies and they’ve done so copiously since the single currency’s introduction. So much of an advantage has the euro given to the Germans that they have been running a current account surplus averaging around 8% for many years (well beyond EU rules and which would see sanctions imposed on any other country fortunate enough to do the same).
The euro has condemned a generation of young people in the peripheral EU countries to a lifetime of unemployment (43% in Greece; 38% in Spain; 35% in Italy; four more countries over 25%; the average for the Eurozone as a whole approaching 20%; but just 6% in Germany). These countries are locked into an exchange rate and interest rate prison which gives them no tools to deal with their relevant lack of competitiveness. The single currency is probably the biggest political error of modern times and has caused widespread hardship among millions of the people using it (except the Germans). But the euromaniacs will go to any lengths to prop it up because it is one of their two most glorious achievements. Liking it because you don’t have to change your money when you go on holiday is just about the most asinine explanation I have ever heard. When it eventually collapses (which it will whether Mr Trump talks it down or not) there will be chaos. The euromaniacs need to prepare for an orderly demise of their wretched currency but there is no chance whatsoever of that.
I am aware that there are people who hate the thought of the Euro being successful and fervently hope for signs of it failing. But what about the Pound, for decades it has steadily (sometimes dramatically) fallen in relative value against the USD, the CHF and also almost uninterruptedly the Euro (and certainly its predecessor national currencies) - just check the graphs over the past decades ? For a prime example of a softening currency one need look no further - the Pound is avoided in some quarters for being a bad investment/asset. It may have sentimental value but so does a tatty comfort blanket.
"...the Pound is avoided in some quarters for being a bad investment/asset."
It's not designed to be an investment or an asset. It is a currency. Unlike the euro the Pound has not condemned millions of people across Europe to penury. The Pound has a central bank to underwrite it and a strong economy to reinforce it. The euro has neither. The European Central Bank refuses to underwrite it and the only economy realistically capable of reinforcing it refuses to do so. A currency without fiscal or political union is doomed to failure. And that's exactly what the euro is.
It's not designed to be an investment or an asset. It is a currency. Unlike the euro the Pound has not condemned millions of people across Europe to penury. The Pound has a central bank to underwrite it and a strong economy to reinforce it. The euro has neither. The European Central Bank refuses to underwrite it and the only economy realistically capable of reinforcing it refuses to do so. A currency without fiscal or political union is doomed to failure. And that's exactly what the euro is.
“Posts about the imminent demise of the € have been amusing me for 18 years. Like the End of the World Doomsayers, it just never happens.”
In a world untrammelled by politicians’ vanity it would have happened probably around 2012 (if not before). Unfortunately the politicians whose vanity is under threat are the euromaniacs and, having secured their powers from gullible national governments, they will go to unprecedented lengths to protect the second of their two most glorious achievements. Both those “successes” (the euro and free movement - particularly the Schengen Agreement) have bestowed untold misery upon millions of people across the continent. But far from being troubled by those scandals (which, after all, only effect the "ordinary people") they do all they can (including throwing billions of euros and pounds of other people’s money at problems of their own making) to protect their pets.
The euro will fail, but it will last far longer than it realistically should because of its manipulation by politicians. The next “crisis” to hit the currency will come from Italy and when it does the Greek fiasco of five or six years ago will seem like a teddy bears’ picnic.
In a world untrammelled by politicians’ vanity it would have happened probably around 2012 (if not before). Unfortunately the politicians whose vanity is under threat are the euromaniacs and, having secured their powers from gullible national governments, they will go to unprecedented lengths to protect the second of their two most glorious achievements. Both those “successes” (the euro and free movement - particularly the Schengen Agreement) have bestowed untold misery upon millions of people across the continent. But far from being troubled by those scandals (which, after all, only effect the "ordinary people") they do all they can (including throwing billions of euros and pounds of other people’s money at problems of their own making) to protect their pets.
The euro will fail, but it will last far longer than it realistically should because of its manipulation by politicians. The next “crisis” to hit the currency will come from Italy and when it does the Greek fiasco of five or six years ago will seem like a teddy bears’ picnic.
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