The future of the Euro

[SFG75]

Just curious-how serious is this problem and do you believe the Euro will continue on, or will there be a break up? Some ominous news is being reported about it on our side of the pond, just curious what the perspective is in your respective countries.

Possible French downgrade.

No likely ending to Euro crisis.

As for me, I'm still perusing the libertarian leaning economic writers and the more pro-Keynesians as well. What I do know is that we are in one heck of a vicious cycle. If you cut back on government employees and benefits, you save the deficit, but add to it ultimately as they will then be on the dole. If you keep them employed and extend unemployment benefits, then you blow up the deficit. The political season will make even die-hards sick to their stomach, I can't believe it begins in January, talk about ringing in the new year. I suppose Peder is busy putting up his Newt Gingrich sign in his yard, offending the New England sensibilities of his neighbors.:flowers:

 

[Peder]

. . .I suppose Peder is busy putting up his Newt Gingrich sign in his yard, offending the New England sensibilities of his neighbors.:flowers:

Scott, that not such a nice thing to suggest about someone who has always been friendly to you. Have I rubbed you the wrong way somehow?

I'll take it as an attempt at wild-ass off-the-wall humor to get a chuckle in this thread.

And PS (just for those who don't know me or you), you suppose incorrectly.

:flowers:

 

[Will]

BBC News - Norman Lamont: Eurozone is in denial

 

[SFG75]

I'll take it as an attempt at wild-ass off-the-wall humor to get a chuckle in this thread.
:flowers:

Ah, you know me all too well. :flowers: Perhaps a better analogy would've been me having an Obama sign in my yard in my community. After all, who wouldn't prefer an ineffectual, diffident president who caves after making numerous veto threats and who only worked to pass half-hearted measures to stem the problem of unemployment, only to see it continue to be a problem? Oh well, I guess even presidents are entitled to a bad run of a year or two, lord knows Reagan had his times in the late '80s.


Spiegel online: Save the Euro!

Too little too late?

 

[sparkchaser]

The Euro is dropping and that is good news for me.

 

[Peder]

Ah, you know me all too well. :flowers: Perhaps a better analogy would've been me having an Obama sign in my yard in my community. After all, who wouldn't prefer an ineffectual, diffident president who caves after making numerous veto threats and who only worked to pass half-hearted measures to stem the problem of unemployment, only to see it continue to be a problem? Oh well, I guess even presidents are entitled to a bad run of a year or two, lord knows Reagan had his times in the late '80s.

Har! I think your first suggestion of a Gingrich sign in my original neighborhood -- I've moved recently -- might actually be safer than an Obama sign in your yard. My neighbors up there would just take me for crazy.

But politics is a crazy game, and it is an ill wind that blows absolutely no good. So maybe there's hope in some direction or other.

Cheers
Peder

 

[sparkchaser]

I don't think Germany will be going back to the DM in the near future.

 

[SFG75]

I found archives of different magazines that I subscribe to and spent some time reading articles about the creation of the Euro. Even back then, a lot of writers commented on how difficult it would be to enforce one monetary policy on a wide range of countries that differ so greatly. One common example that was cited, was how interest rates might be raised or lowered to benefit a few countries, when that exact policy would exacerbate another nation's already high unemployment rate by stemming growth. It's amazing things have been so smooth as they have been. I was in Ireland in '99 and was very impressed with the "Celtic tiger." Numerous construction projects, a ton of businesses, and American retirees flocking to Dublin were some of the more notable things that I witnessed. Of course, times aren't like that any more there, but it was quite an experience.

Another window ledge article:

It would be a "miracle" if France retains its AAA rating.

 

[Peder]

I found archives of different magazines that I subscribe to and spent some time reading articles about the creation of the Euro. Even back then, a lot of writers commented on how difficult it would be to enforce one monetary policy on a wide range of countries that differ so greatly. One common example that was cited, was how interest rates might be raised or lowered to benefit a few countries, when that exact policy would exacerbate another nation's already high unemployment rate by stemming growth.

If I remember my American History vaguely, among the reasons leading to the American Civil War was the growing imposition by the North on the South of tariff polcies which favored the industrial North at the expense of the agrarian South -- among a host of other issues, slavery among them of course.