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Namely they like to print money So does the EU though. This doesn't seem like an especially great plus point for the Euro, given the QE (money printing) on a t
by repolfx 7y ago
Namely they like to print money
So does the EU though. This doesn't seem like an especially great plus point for the Euro, given the QE (money printing) on a truly vast scale carried out by Mario "whatever it takes to save the euro" Draghi and likely to be continued by his successor.
Basically the eurozone stays unified by having local governments borrow money from the ECB, which is willing to engage in apparently unlimited bond purchases to ensure yields stay low and pro-EU governments stay in power. This amounts to massive wealth transfers from (primarily) Germany to the rest of the eurozone for purely political reasons. Germany is willing to tolerate this because of its past: German national pride has been transferred nearly wholesale to the EU's desired future nation of "Europe". Would African nations tolerate the same? Seems very dubious.
- seer 7y agoThe euro sure has its problems with the uneven power distributions of its users, but wouldn’t you call the same for the us dollar or the yuan for that matter? I’m sure there would chinese be provinces that tolerate their underperforming neighbors for similar political reasons. Maybe Africa will show us what a more equitable power distribution looks like? I’d love for them to try. But I would predict that it would be vastly beneficial for capital flowing into that African union to have a stable currency. People with money usually don’t want their capital to evaporate for frivolous reasons.