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Using the same currency without a common fiscal policy and resources is a disaster. It means currency and interests rates cannot be tuned to each country's econ
by graemep 2y ago
Using the same currency without a common fiscal policy and resources is a disaster. It means currency and interests rates cannot be tuned to each country's economy. It means governments cannot borrow in their own currency (which is cheapest). There is a reason almost all countries have their own currency.
The hope was that the single currency would be soon followed by political union. Without this the Euro has been a disaster, leading to the European debt crisis, and painful austerity as the price of bailout.
- richjdsmith 2y agoCouldn't agree more. Greece is a great example of what happens to a country when they have a sovereign debt crisis and no control over the value of their currency. The ability to control your overnight bank rates, and your monetary supply is important. I don't think the convenience of easy travel or easy(ier) trading of goods outweighs it at all.
- apeescape 2y agoGreece cheated their way into EUR. They didn't meet the requirements, so they cooked the numbers with the help of GS. This later on blew up into everybody's faces (well, everyone except GS's).
- addicted 2y agoGreece showed the flaws with the EU. The good thing is that the EU has improved since then. On the flip side, Greece is also a great example of how powerful the EU can be. Greece would have absolutely collapsed outside the EU. So even with the limitations on the EU, Greece did a lot better within the EU than it would have outside.
- drtgh 2y ago> The good thing is that the EU has improved since then It was indeed a big backdoor attack to the Euro, exploited by GS [1], at least. > Greece would have absolutely collapsed outside the EU. Meat for the IMF, BlackRock and so on; Argentina's twin. Global economy seems to be an ocean with Orca whales, they hit and eat alongside with sharks. The citizens turns to meat at same moment their politicians betray them [2], whether caused by ignorance or by malice (corruption). [1] https://www.theguardian.com/business/2010/feb/25/markets-pressure-greece-cut-spending https://www.theguardian.com/business/2010/feb/25/markets-pre... [2] https://www.theguardian.com/business/2010/apr/18/goldman-sachs-regulators-civil-charges https://www.theguardian.com/business/2010/apr/18/goldman-sac... ( Now we know the truth. The financial meltdown wasn't a mistake – it was a con ) PS: I wonder what happened to the perpetrators of the 2008 crisis.
- mmooss 2y ago> disaster By your theory, and by the endless claims of the anti-EU crowd, but it hasn't been. People use euros with no problem, every day, for transactions large and small. It's a major international currency, maybe second only to the dollar.
- pembrook 2y agoYou’ve offered zero counter points to OPs claims though. Every time I travel abroad, I transact in local currencies for transactions large and small all over the world using real-time currency exchange rates via the magic of the Visa/Mastercard network. If that was the core thing the Euro was supposed to solve, the better solution today is just an EU wide digital payments standard. The point still stands, a common currency without the ultimate unification part is just disadvantageous for most.
- mmooss 2y agoThe overwhelming counterpoint that I'm making is that it's not a disaster and hasn't been one, now for 25 years. It's been an overwhelming success by any measure. Where's the evidence of disaster?
- ethanpailes 2y agoSince the financial crisis the US economy has kept on trucking, while the EU has stagnated. This isn’t all because of the euro, but it’s definitely a disaster and I think it is reasonable to hold the euro at least partially responsible.
- izacus 2y agoMeanwhile the strongest federation on Earth somehow manages without allowing Texas and Wyoming their own dollars and currency manipuliation. Funny that.