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| Topic: L'Euro ... ? C'est Mort ... | |
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We can probably start looking for the day when the Euro slowly disappears from the world monetary scene ... its death roll is already a work in progress. This illustrates the foolishness of attempting to IMPOSE a 'national currency' (where was the 'nation'?) when there is no commonality of political thought or belief ... Before there can be a national currency, there MUST be a nation - Europe is still a collection of Balkanized nation-states ... how could they EVER think this would work ... ? Greece prolly made out better than the rest of 'em - it got the free ride and didn't have to pay - well, until now ...
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ http://www.telegraph.co.uk/finance/comment/jeffrandall/7746806/Whatever-Germany-does-the-euro-as-we-know-it-is-dead.html Whatever Germany does, the euro as we know it is dead Angela Merkel's ban on short-selling is just a distraction from the horror to come By Jeff Randall | Published: 7:56PM BST 20 May 2010 The euro has many flaws, but its weakest link is Greece, whose fundamental problem is that for years it spent too much, earned too little and plugged the gap by borrowing in order to enjoy a rich man's lifestyle. It flouted EU rules on the limits to budget deficits; its national accounts were a moussaka of minced statistics, topped with a cheesy sauce of jiggery-pokery. By any legitimate measure, Greece was unworthy of eurozone membership. That it achieved card-carrying status was down to the sleight-of-hand skills of its Brussels fixers and the acquiescence of central bank bean-counters. Now we know the truth, jet-hosing it with yet more debt makes no sense. Another dose of funny money will delay but not extinguish the need for austerity. This is why the euro, in its current form, is finished. The game is up for a monetary union that was meant to bolt together work-and-save citizens in northern Europe with the party animals of Club Med. No amount of pit props from Berlin can save the euro Mk I from collapsing under the weight of its structural dysfunctionality. You cannot run indefinitely a single currency with one interest rate for 16 economies, when there are such huge fiscal disparities. What was once deemed unthinkable is now, I believe, inevitable: withdrawal from the eurozone of one or more of its member countries. At the bottom end, Greece and Portugal are favourites to be forced out through weakness. At the top end, proposals are already being floated in the Frankfurt press for a new "hard currency" zone, led by Germany, Austria and the Benelux countries. Either way, rich and poor are heading in opposite directions. When asked on Sky if, in five years' time, the euro will have the same make-up as it does today, Jeremy Stretch, a currency analyst at Rabobank, the Dutch financial services giant, told me: "I think it's pretty unlikely." The euro was a boom-time construct. In the biggest bust for 80 years, it is falling apart. |
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Edited by
s1owhand
on
Fri 05/21/10 04:49 PM
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Just heading back to parity with the USD
http://moneycentral.msn.com/investor/charts/chartdl.aspx?symbol=/EURUS |
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