Estonia joined the EURO

[deflateIT]

There is an euphoria that this should now fix all Estonian (and Latvian and Lithuanian) economic problems and somehow create more jobs, attract investments, etc.

This is how they protect the fiat. Never seen so much security with physical gold. They try to get everyone's focus on new paper money that is going to be worthless as soon as the new SHTF, so that everyone is made to believe that EURO is the real wealth.

[Olduvai]

Re: Estonia joined the EURO

Expect the Estonians to be not so very happy over a year. After Euro introduction perceived inflation by citizens Northern Europe about 30% in 2000. Official statistics 1% off course. Suddenly the new Euro bought you far less than the Guilder or Dmark used to. Wages stayed the same. These smiles will vanish quickly.

[FrankL]

Re: Estonia joined the EURO

Expect the Estonians to be not so very happy over a year. After Euro introduction perceived inflation by citizens Northern Europe about 30% in 2000. Official statistics 1% off course. Suddenly the new Euro bought you far less than the Guilder or Dmark used to. Wages stayed the same. These smiles will vanish quickly.

imo that was a deliberately act of wage deflation caused by undervaluation in the fixed currency ratio (ERM). The ones in Northern European countries saw it as an easy opportunity to make their economies more competitive without telling the sheeple. To some degree they were right, but it's not very nice if you had your assets stored directly in the pre-conversion fiat.