[MoonBat]

The "Euro" is neat experiment. It's a currency without a country. Usually, all fiat currencies are "Backed" by the central government's ability to tax. Usually, that tax is a direct tax on income/wages. This taxing ability is a guarantee to the holders of government debt. It'll be interesting how Debt service will be handled in the future of the Euro. Who will "enforce" the payment of debts to the EU?

[RukshawM4st3r]

I'm going to switzerland in the fall. Hopefully the Euro and the Swiss Frank will give back some of their gains against the dollar by then.

[pharaoh]

The EU is NOT a long term solution to politics in Europe.

Europe is still in a state of trauma following the two world wars of the 20th century. The idea of close relations was created out of a knee-jerk reaction to these catastrophic events. This agreement will slowly break down over time.

Its just like going out on a Friday night and getting completely hammered. You wake up the next morning with no memory, and puke the entire day. What is the first thing you say? I will never drink again. But the following Friday, your buddies call you up and you do the same thing.

Europe is still in a massive hangover/shock. Eventually relations will get icy again.

[Rotund Grappler]

the article doesnt say why italy or spain will abandoen the euro. id like to see other sources who think the same, and why.

[Zankou]

Originally Posted by Rotund Grappler

the article doesnt say why italy or spain will abandoen the euro. id like to see other sources who think the same, and why.

It does explain why. Because the German bloc demands that the financial policy be kept very austere, and Italy and Spain want a stimulus-heavy approach, easy money, in order to keep their economies going. It's a conflict of interest. Putting it simply, Italy and Spain want to print lots of money, Germany and its group do not.

[Rematch]

Originally Posted by Zankou

It does explain why. Because the German bloc demands that the financial policy be kept very austere, and Italy and Spain want a stimulus-heavy approach, easy money, in order to keep their economies going. It's a conflict of interest. Putting it simply, Italy and Spain want to print lots of money, Germany and its group do not.

Ah yes, conflict of interests. The main reason why a multinational currency that is controlled by more than one nation is destined for failure.

[balance]

The world's leading industrialist nations' departure from the gold standard in the early 1930s can be seen as a sublime conspiracy to sandbag the oil-producing countries by intentionally over-printing and devaluing their currency while barrels were still priced against the dollar. This resulted in less real income received by the oil producers in exchange for the very fuel they provided to the consumer nations for the manufacture of goods which were then sold to them at inflated rates. And the global conflict that is the Middle East was born.

This being said, I think some European nations may be feeling un-inclined to continue the trend.

[Sauron]

Originally Posted by pharaoh

The EU is NOT a long term solution to politics in Europe.

On the contrary it is the long term solution to politics in Europe.

I'm not sure how long you consider long but it's going on 50 or so years now and with the lisbon treaty and more countries joining the euro i struggle to see how it isn't the long term solution.

Europe is still in a state of trauma following the two world wars of the 20th century. The idea of close relations was created out of a knee-jerk reaction to these catastrophic events. This agreement will slowly break down over time.

Except it hasn't. If anything it has brought nations together. 27 nations to be exact.

Its just like going out on a Friday night and getting completely hammered. You wake up the next morning with no memory, and puke the entire day. What is the first thing you say? I will never drink again. But the following Friday, your buddies call you up and you do the same thing.

Europe is still in a massive hangover/shock. Eventually relations will get icy again.

Icy how?

Do you think another world war is going to happen with Germany once again trying to take over the world.

[johnsic]

Euro isnt going anywhere. Its getting stronger if anything and it will soon replace dollar as the most important currency.

[Cojofl]

What is more likely than the Euro's demise is a change to the official objectives of the ECB, with growth being put on the same level as price stability. That would be a mistake imho. Recent developments in macroeconomics, particularly DSGE models, seem to indicate that monetary policy is very blunt tool with which to achieve growth. There is a lot more the French and Italians could do domestically but it seems they'd rather use the Euro as a scapegoat rather than facing up to those tough issues.