Reply to: Whose fault was it?

[EternalOptimist]

..., say, Mississipi and California (taking 2 very different states of the top of my head), ...

luckily, with a head that size, there is plenty of room for those two states to fit in easily

[Old Greg]

Nobody is to blame. It's an inevitable crisis of capitalism.

[AtW]

That is how it has been sold by politicians to the gullible.

Do you even know what is high inflation, and by that I mean 30-50% per year? Stable currency helps control it - that's priceless for countries that were too small to fend off people like Soros who make their money on misery of others.

[AtW]

How exactly would rules have been enforced unless EU countries had given up their sovereignty.

Neither people nor States should have sovereignty to run up excessive debts.

That should be enforced with extreme prejudice.

HTH

[DodgyAgent]

You think for UK Joe Public it would be better to use 20 currencies when travelling on holiday in EU?

Or perhaps you think businesses other than banks that make money on conversion would benefit from 20 currencies in EU trade? The volatility in majority of individual currencies that will be weak would be so high that everybody serious would need to hedge them - yet again profit for the City.

Single currency solves all these problems and centrally controlled interest rates also prevent easy money printing to solve problems: in EU that is, what happened in USA is their problem.

What they did not have the guts to solve is budget deficits that lead to unsustainable debts - the rules were in place but no mechanism to enforce it. Hence local politicians used to get votes "growing" economy through debt.

If UK joined eurozone and budget deficits were enforced then current crisis might not have happened in the first place.

How exactly would rules have been enforced unless EU countries had given up their sovereignty. You clearly think just like the stupid socialist bureaucrats who vainly introduced the Euro in the first place. Like you they assumed everything would simply fall into place as if there was a Merlin the Magician who could turn wishes into reality.

[Doggy Styles]

People who write about euro crash clearly don't do any serious business with europe - SKA Inc does and I don't want to deal with 20 currencies, much much easier to accept just euros.

If UK joined euro zone it would make trade even easier - just 2 proper reserve currencies: EUR and USD, easy to hedge against one another. Naturally that would remove nano-second arbitrage opportunities for some City types who'd lose their jobs, but that's the sacrifice most people can live with!

That reminds me of the folk who originally said they were pro-euro simply because they could buy a latte in Paris and Helsinki with the same coins. None of the rest of the euro's impact mattered to them at all, didn't even dawn on most of them.

That is how it has been sold by politicians to the gullible.

[AtW]

It is also the extent of how far Jo public could relate to the benefits of the Euro.

You think for UK Joe Public it would be better to use 20 currencies when travelling on holiday in EU?

Or perhaps you think businesses other than banks that make money on conversion would benefit from 20 currencies in EU trade? The volatility in majority of individual currencies that will be weak would be so high that everybody serious would need to hedge them - yet again profit for the City.

Single currency solves all these problems and centrally controlled interest rates also prevent easy money printing to solve problems: in EU that is, what happened in USA is their problem.

What they did not have the guts to solve is budget deficits that lead to unsustainable debts - the rules were in place but no mechanism to enforce it. Hence local politicians used to get votes "growing" economy through debt.

If UK joined eurozone and budget deficits were enforced then current crisis might not have happened in the first place.

[DodgyAgent]

People who write about euro crash clearly don't do any serious business with europe - SKA Inc does and I don't want to deal with 20 currencies, much much easier to accept just euros.

If UK joined euro zone it would make trade even easier - just 2 proper reserve currencies: EUR and USD, easy to hedge against one another. Naturally that would remove nano-second arbitrage opportunities for some City types who'd lose their jobs, but that's the sacrifice most people can live with!

If you bother to look across any of the financial commentaries in any of the newspapers you will see what a fatuous and utterly irrelevant benefit this argument has become (ie no one mentions it because in relation to the problems surrounding the Euro it is insignificant). Milanbenes was arguing this when the Euro came out. It is also the extent of how far Jo public could relate to the benefits of the Euro. I prefer to call it the "bucket and spade" argument.

[BlasterBates]

People who write about euro crash clearly don't do any serious business with europe - SKA Inc does and I don't want to deal with 20 currencies, much much easier to accept just euros.

If UK joined euro zone it would make trade even easier - just 2 proper reserve currencies: EUR and USD, easy to hedge against one another. Naturally that would remove nano-second arbitrage opportunities for some City types who'd lose their jobs, but that's the sacrifice most people can live with!

That's exactly where it's heading.

Australia and New Zealand could adopt single currency - Telegraph



Single Asian currency 'inevitable' - ADB exec - The Philippine Star » News » Headlines


ALBA Countries Discuss Evolution of Common Currency « Embassy of the Bolivarian Republic of Venezuela in the U.S.

[AtW]

People who write about euro crash clearly don't do any serious business with europe - SKA Inc does and I don't want to deal with 20 currencies, much much easier to accept just euros.

If UK joined euro zone it would make trade even easier - just 2 proper reserve currencies: EUR and USD, easy to hedge against one another. Naturally that would remove nano-second arbitrage opportunities for some City types who'd lose their jobs, but that's the sacrifice most people can live with!

[sasguru]

That sounds like a reasoned argument,.

Only if you possess the reasoning power of a gnat.
HTH

[BlasterBates]

They forgot to ask DodgyAgent's opinion clearly

While on the subject - The Telegraph has got a couple of column writers who mainly keep writing bollox about how euro is going to end and how terrible it all is. They'll still be writing this next year and until such point they get paid in euros!

absolutely, in the longterm there's going to be a need for more integration not just between European countries but globally. These are global problems.

[BlasterBates]

What about USA? Detroit is very different from New York.

That sounds like a reasoned argument, I think you need to look at it from a more "emotional" viewpoint.

[AtW]

So if it is so obvious why don't they do it?

They forgot to ask DodgyAgent's opinion clearly

While on the subject - The Telegraph has got a couple of column writers who mainly keep writing bollox about how euro is going to end and how terrible it all is. They'll still be writing this next year and until such point they get paid in euros!

[AtW]

Clearly the Euro, by imposing a one-size fits all fiscal and monetary policy on a set of very diverse, non-convergent states.

What about USA? Detroit is very different from New York.