Is the Euro Dead ~ Has Time Been Called on the EU Currency ?
Is the Euro Dead ?
Can I hear the distant sound of the Death Knell being rung for the European Currency ?
Is the Euro Finished
In a word yes !
That is to say I believe it is in principal. Such is the vanity of those involved in the project I suspect they’ll do anything and spend unimaginable sums of money to prop it up but the cracks are really beginning to show
I never really saw how it could work, indeed there’s an argument to say it never did.
Germany for example should have been suspended from the Euro some time ago as they continually failed to meet the criteria officially required to remain part of monetary union.
It was ever a political concept and ambition in my opinion - never a fiscal idea with any probity.
I always failed to understand how so many divergent economies could be controlled from a central bank. Add to that completely different national ideas and concepts of fiscal management it could never be anything but a fudged affair.
It was with bemusement that I used to listen to Tony Blair making the argument that it was a great thing and that a central bank and unified financial plan would work.
At the very same time he was also saying that the UK was too big and power and money had to be devolved to Scotland, Ireland and Wales !
Am I missing something here I would think.
Greece is now on the brink of collapse and although countries are making noises about ‘coming to the rescue’ none have actually stepped up and written the cheques as yet.
Well, when I say written cheques I really mean guarantee loans of imaginary money, writing cheques suggests you’ve actually got some spare money yourself !
There’s surely going to be huge domestic political pressure now as countries within the Euro Zone struggle with their own deficits - what appetite will the public have for giving away billions in support to other countries whose appalling financial management have landed them where they deserve to be ?
The death or survival of the Euro surely rests in the money markets
There are few more brutal institutions and some would say they ultimately decide the fate of such things - which is largely true.
That being the case the fact the Euro survives must mean it passes the tests and rigours of the markets is perhaps one argument.
I would contest that, I suspect the markets are holding off at the moment. Not because they’re charitable but because they themselves fear the consequences of a collapse.
Let’s remember that were many of the countries in Europe global corporations they already would have gone into liquidation.
Such is the political importance of the European Currency to those involved, not to mention their pride and vanity, I imagine they’ll do anything to avoid a collapse or retreat.
That said, I would not be surprised to see some countries leave or if they don’t be given special dispensation to act outside the confines of the rules in order to prop their economies up.
There will be more than a few people wishing they’d never signed up to this farcical idea and the British public should take some pride in having the collected sense to scare UK politicians into backing away from it.
The storm clouds are gathering !
Any opinions on this or my argument are warmly welcomed
Financially Yours
Rod
Tom C. said,
February 14, 2010 @ 12:53 pm
Rod, no doubt they (Sarkozy, Merkel and their cronies) will really dig their fox holes over European currency. I mean, how bad would it look If the United States of Europe did not have a standardised single currency. Some poor clueless being might just presume we’re a loosely linked group of individual sovereign nations. God Forbid.
Rod said,
February 14, 2010 @ 5:26 pm
Tom,
what a ridiculous notion - are you really suggesting that we could all have close economic ties and trade happily with each other, keep the peace and stand together in times of trouble without the multi billion £/$/Euro Brussels Gravy Train
No flies on you Tom !
Best
Rod
Rod said,
February 26, 2010 @ 6:16 pm
Update:
where you host leads George Soros follows
Re today on the collapse of the Euro, reports state the George Soros (named The Man Who Broke the Bank of England) is now hedging huge sums of money on a collapse of the Euro to US $ parity.
That must be more worrying than any press story or anything any politician can say.
If all the big players bet against the Euro (which they will once the likes of Soros moves) then not even the vanity and arrogance of EU politicians will be able stop a run on the Euro
Rod said,
January 13, 2012 @ 7:20 pm
Here we go - we’re under starters orders now . . .
Storm clouds are really gathering now - hold on to your hats - it’s going to get rough !