pongo Posted February 20, 2015 Share Posted February 20, 2015 The economies of different parts of Europe are simply not compatible with each other and the power of the centre will cause stress to breaking point at the periphery. So how does it make sense for Blackburn or Nottingham to be part of the London £ ? Link to comment Share on other sites More sharing options...
woolley Posted February 20, 2015 Share Posted February 20, 2015 The economies of different parts of Europe are simply not compatible with each other and the power of the centre will cause stress to breaking point at the periphery. So how does it make sense for Blackburn or Nottingham to be part of the London £ ? They have political as well as monetary union. Eurozone is like herding cats. Link to comment Share on other sites More sharing options...
pongo Posted February 20, 2015 Share Posted February 20, 2015 They have political as well as monetary union. Eurozone is like herding cats. Yes. But acceptance of the bailout conditions amounts to defacto (partial) political union. The conditions for membership of the € already did that - but were not adequately administered. Ultimately the € would need to be be run independent of ability of national govts to fiddle the accounting for political ends. I wonder about the long term viability of some countries in a modern economy. It might be better for them to merge ! Link to comment Share on other sites More sharing options...
woolley Posted February 20, 2015 Share Posted February 20, 2015 They have political as well as monetary union. Eurozone is like herding cats. Yes. But acceptance of the bailout conditions amounts to defacto (partial) political union. The conditions for membership of the € already did that - but were not adequately administered. Ultimately the € would need to be be run independent of ability of national govts to fiddle the accounting for political ends. I wonder about the long term viability of some countries in a modern economy. It might be better for them to merge ! Good idea if it wasn't for human nature. As with many aspects of the European project, the enthusiasts leading the way have run far ahead of their populations who are not at all enthusiastic for a superstate. You are correct to say that a degree of sovereignty was merged amounting to de facto partial political union at the formation of the euro but this was a classic EU fudge that essentially, and as always, was not articulated to the Eurozone public. They were told about the good bits but not about the privations that would inevitably come down the track. The whole thing was based on blind optimism - "do it and it'll be OK." More likely to beget war than harmony. As for the modern economy of bigger is beautiful, all is transitory. It's the age of the global capitalist empire. It is having its time but like all empires it is man made and therefore mortal. Its time will pass. We've already seen the portents. Link to comment Share on other sites More sharing options...
hillshepherd Posted February 20, 2015 Share Posted February 20, 2015 They have political as well as monetary union. Eurozone is like herding cats. Yes. But acceptance of the bailout conditions amounts to defacto (partial) political union. The conditions for membership of the € already did that - but were not adequately administered. Ultimately the € would need to be be run independent of ability of national govts to fiddle the accounting for political ends. I wonder about the long term viability of some countries in a modern economy. It might be better for them to merge ! Good idea if it wasn't for human nature. As with many aspects of the European project, the enthusiasts leading the way have run far ahead of their populations who are not at all enthusiastic for a superstate. You are correct to say that a degree of sovereignty was merged amounting to de facto partial political union at the formation of the euro but this was a classic EU fudge that essentially, and as always, was not articulated to the Eurozone public. They were told about the good bits but not about the privations that would inevitably come down the track. The whole thing was based on blind optimism - "do it and it'll be OK." More likely to beget war than harmony. As for the modern economy of bigger is beautiful, all is transitory. It's the age of the global capitalist empire. It is having its time but like all empires it is man made and therefore mortal. Its time will pass. We've already seen the portents. + me. Link to comment Share on other sites More sharing options...
Lxxx Posted February 21, 2015 Share Posted February 21, 2015 Never mind the relative euro shock when the Swiss de pegged from the euro, when China decides it's time they stopped subsidising America and depegs from the dollar, that'll measure 10 on the Richter scale. Link to comment Share on other sites More sharing options...
pongo Posted February 21, 2015 Share Posted February 21, 2015 Never mind the relative euro shock when the Swiss de pegged from the euro, when China decides it's time they stopped subsidising America and depegs from the dollar, that'll measure 10 on the Richter scale. Three things: 1. The yuan is not (strictly) pegged to the USD (not like the CHF was pegged to the EUR) - its rate is managed and has been allowed to gradually increase over recent years. 2. Why would China do anything to undermine their export economy ? 3. Many people wrongly believe that China owns a majority of US debt. The reality is that the majority of US debt is owned domestically. Link to comment Share on other sites More sharing options...
woolley Posted February 21, 2015 Share Posted February 21, 2015 US government (federal and states) has been allowed to become mired in debt, but America as a country is rich beyond the dreams of avarice. The arrangement suits a lot of powerful people. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.