A Call to End the Euro? (economy, carry, money, states)
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The fatal flaw in the unified currency has been exposed, and it is only a matter of time before much of the Euro is unwound.
The flaw is that when a country goes through a fiscal or debt crisis (which has been happening in one place or another every decade for centuries), it is unable to take a devaluation on its currency. Currency devaluation punished imprudent investors who fed the bubble that preceeded the crisis AND boosted the real economy of the country as exports surged. It was a workable way out of the crisis--and a path that is not available to Euro countries.
In addition, the unified currency scheme actually worsens the imbalances leading up to the crisis, since weaker countries are able to borrow at lower interest rates--and leverage up even more than if they were working with a single-country currency.
There is no viable alternative to the unwinding of the Euro; the only question is how much pain and dislocation will occur before policymakers in the affected countries embrace reality. The load is shifting and the wagon will end up in the ditch.
The problems are not good for anybody, anywhere, so glee over the misfortunes of others would be misplaced.
The fatal flaw in the unified currency has been exposed, and it is only a matter of time before much of the Euro is unwound.
The flaw is that when a country goes through a fiscal or debt crisis (which has been happening in one place or another every decade for centuries), it is unable to take a devaluation on its currency. Currency devaluation punished imprudent investors who fed the bubble that preceeded the crisis AND boosted the real economy of the country as exports surged. It was a workable way out of the crisis--and a path that is not available to Euro countries.
In addition, the unified currency scheme actually worsens the imbalances leading up to the crisis, since weaker countries are able to borrow at lower interest rates--and leverage up even more than if they were working with a single-country currency.
There is no viable alternative to the unwinding of the Euro; the only question is how much pain and dislocation will occur before policymakers in the affected countries embrace reality. The load is shifting and the wagon will end up in the ditch.
The problems are not good for anybody, anywhere, so glee over the misfortunes of others would be misplaced.
None of those problems are inherent to currency unions... rather, they are problems with the EUROPEAN currency union.
The fatal flaw in the unified currency has been exposed, and it is only a matter of time before much of the Euro is unwound.
The flaw is that when a country goes through a fiscal or debt crisis (which has been happening in one place or another every decade for centuries), it is unable to take a devaluation on its currency. Currency devaluation punished imprudent investors who fed the bubble that preceeded the crisis AND boosted the real economy of the country as exports surged. It was a workable way out of the crisis--and a path that is not available to Euro countries.
In addition, the unified currency scheme actually worsens the imbalances leading up to the crisis, since weaker countries are able to borrow at lower interest rates--and leverage up even more than if they were working with a single-country currency.
There is no viable alternative to the unwinding of the Euro; the only question is how much pain and dislocation will occur before policymakers in the affected countries embrace reality. The load is shifting and the wagon will end up in the ditch.
The problems are not good for anybody, anywhere, so glee over the misfortunes of others would be misplaced.
You have the same issue in the US. There are states like California which are in severe fiscal crisis too. Are you suggesting getting rid of the dollar so that they can have their own currency and enjoy the benefits of devaluation?
None of those problems are inherent to currency unions... rather, they are problems with the EUROPEAN currency union.
The problem with European currency union was the decision to allow some of the peripheral EU countries to be members. In fact, the economies of Germany, France, Austria and Benelux are very integrated and interdependent and, for them, currency union made sense. For that reason, the Euro will not go away. What will happen is that the strong countries will simply take control of the weaker country's economies.
The fatal flaw in the unified currency has been exposed, and it is only a matter of time before much of the Euro is unwound.
The flaw is that when a country goes through a fiscal or debt crisis (which has been happening in one place or another every decade for centuries), it is unable to take a devaluation on its currency. Currency devaluation punished imprudent investors who fed the bubble that preceeded the crisis AND boosted the real economy of the country as exports surged. It was a workable way out of the crisis--and a path that is not available to Euro countries.
In addition, the unified currency scheme actually worsens the imbalances leading up to the crisis, since weaker countries are able to borrow at lower interest rates--and leverage up even more than if they were working with a single-country currency.
There is no viable alternative to the unwinding of the Euro; the only question is how much pain and dislocation will occur before policymakers in the affected countries embrace reality. The load is shifting and the wagon will end up in the ditch.
The problems are not good for anybody, anywhere, so glee over the misfortunes of others would be misplaced.
Government fraud in the debt reporting leading up to the formation of the EU is partially to blame for the current mess. And it is ongoing.
The guy is 100% right. You can't merge economies and put every country on the same currency. It is a complete failure and we are seeing why today. With this strategy, someone will ALWAYS have to be put into the poor house for someone else to rise up. It is a sham and a power grab to make the citizens slaves to the elites.
Europeans look to another federation that made a currency, military and political union work over two hundred years ago. Before 1789 America consisted of bickering independent states that issued their own currency, raised militias and had many different laws where no one called the shots.
America was truly weaker than the sum of its parts. Could one imagine a North America consisting of 20, 30, or even 50 small rag-tag independent states? How about a land where people dealt in New York Pounds, Lousiana Francs or Livre or Texas Pesos. In fact the money of the Americans was so worthless that much of the business was done using the gold and silver coined by his Majesty King Carlos III of Spain in Mexico and Peru. We Americans buried our hatches and created a common currency the United States Dollar and two centuries later that economic achievement speaks for itself. Who can blame the Europeans for wanting to copy what the Americans have done ?
You have the same issue in the US. There are states like California which are in severe fiscal crisis too. Are you suggesting getting rid of the dollar so that they can have their own currency and enjoy the benefits of devaluation?
No but the country can devalue the currency and one authority controls the curerency. California in fact has no currenct other than the dollar unliie the euro and currency of euro nations.But in the end the euros probelm is that they hav etoo mnay currencies because they are not really united especaily watching the last euro meeeting.
This guy is great! He is spot on and he knows very well that the Progressive/Communist utopia of a one world government and a one world economy/currency will only bring more suffering and starvation.
The guy is 100% right. You can't merge economies and put every country on the same currency. It is a complete failure and we are seeing why today. With this strategy, someone will ALWAYS have to be put into the poor house for someone else to rise up. It is a sham and a power grab to make the citizens slaves to the elites.
Actually most Europeans are happy with the Euro and the European Union. I guess they understansd there are ups and downs in economies. Of course those who don't understand, like to cry out in bad times, and in good times, they just sip their beers and say nothing.
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