Euro - "A doomed currency" - Telegraph

[Charles Mackay]

The achievement of economic and monetary union by 11 European countries in 1999 was based on a deal: Germany, the strongest member, gave up the Deutschemark on the understanding that the others would not debauch the new common currency, the euro. Nearly eight years on, that inherently doomed project is coming apart at the seams.

http://www.telegraph.co.uk/opinion/m...ixopinion.html

[jk]

Re: Euro - "A doomed currency" - Telegraph

stratfor has been skeptical for some time of the longevity of the euro. the needs of, e.g., germany v ireland v italy create strains, and the absence of a truly unified labor market, i.e. low intra-european migration, makes the stress worse. the real test will be a global slowdown/recession, with different euro-zone countries suffering with different intensities.

meanwhile, however, we have the petro countries and asian exporters diversifying out of u.s. dollars mostly in favor of euro holdings. a dollar crisis might well cause a stampede into the euro, with a painfully [for euro zone members] high euro value the result. this is turn might precipitate a politically based euro crisis. lots of "ifs" here, but they all point to precious metals and perhaps the yen and commodity currencies as stores of value.

[blazespinnaker]

Re: Euro - "A doomed currency" - Telegraph

The achievement of economic and monetary union by 11 European countries in 1999 was based on a deal: Germany, the strongest member, gave up the Deutschemark on the understanding that the others would not debauch the new common currency, the euro. Nearly eight years on, that inherently doomed project is coming apart at the seams.

http://www.telegraph.co.uk/opinion/m...ixopinion.html

Yeah, this has been broiling for quite awhile and isn't really new, but I think poorly discounted by the markets. It's funny how everyone seems to have their problems. The euro doesn't have one constitution, the chinese are fascists, the americans are lazy .. etc.

[jack19]

Re: Euro - "A doomed currency" - Telegraph

It is time for the US to adopt a currency for each state in order to show us the right way.

[jk]

Re: Euro - "A doomed currency" - Telegraph

It is time for the US to adopt a currency for each state in order to show us the right way.

we'd have to radically downsize the federal government and do away with the federal income tax, end most federal spending except for agricultural price supports, get rid of the u.s. armed services, have many states amend their state constitutions so that they could run deficits, impede corporations in one state from buying important companies in other states, and figure out some way to make it harder for people to move from state to state to really get the parallel right.

[jack19]

Re: Euro - "A doomed currency" - Telegraph

Can you tell me why are they doing this...???

[jack19]

Re: Euro - "A doomed currency" - Telegraph

I want some more information on this topic

[jk]

Re: Euro - "A doomed currency" - Telegraph

Can you tell me why are they doing this...???

you need to clarify your question. what are you asking? why are who doing what?

[renewable]

Re: Euro - "A doomed currency" - Telegraph

It is time for the US to adopt a currency for each state in order to show us the right way.

Isn't the Amero going to go in the opposite direction, with Canadian and Mexican commodities backing it?

[jk]

Re: Euro - "A doomed currency" - Telegraph

Isn't the Amero going to go in the opposite direction, with Canadian and Mexican commodities backing it?

a think there's been too much movement by both the mexican peso and the loonie, relative to the amero, to think of nafta as a currency union as well as a trade union.

[Chris Coles]

Re: Euro - "A doomed currency" - Telegraph

The achievement of economic and monetary union by 11 European countries in 1999 was based on a deal: Germany, the strongest member, gave up the Deutschemark on the understanding that the others would not debauch the new common currency, the euro. Nearly eight years on, that inherently doomed project is coming apart at the seams.

http://www.telegraph.co.uk/opinion/m...ixopinion.html

I completely dissagree with that analysis. The question should be why is it that so many are now making moves towards using the Euro as their trading currency rather than the US dollar? The Telegraph is well know for being against Europe and the Euro.

What is really interesting is that no one is talking about using the British Pound, (GBP) in such a role and that makes any UK based argument against the Euro nothing more than sour grapes.

Germany is indeed upset about the Euro, being weak. So I cannot for the life of me see why anyone would be worried if the Euro gave exactly what the Germans always had in the past, a very strong currency. And, while you all might talk about the collapse of the European economy caused by a strong Euro; you forget that Germany had by far the strongest economy for many years under a strong currency. The reason for that was, they concentrated upon creating a strong internal economy at the grass roots level, rather than a frothy economy based upon the idea of trading currencies and other paper assets.

See here http://women.timesonline.co.uk/artic...520431,00.html
Blowing the bonus

As City payouts reach epic proportions, London nightlife is alive with the sound of competitive cork-popping. Simon Mills reports on the hedonistic excesses of the new plutocracy


I rest my case.