The Demise of the Euro
- Thread starter Ivanovich
- Start date
LOL. All those who have no wealth. The sheeple on the street who mistake a one time retail price increase to run-away inflation. NB the ECB didn't raise retail prices. Retailers did.
Boy, talk about fanaticism. As I lived in the "existing socialism" as they liked to call their version of hell, I can tell you with authority: you wouldn't be able to tell a commie if it would bite you in the ass. And the euro as a socialist tool for world hegemony? This is priceless.
None in his right mind.
Seriously, it depends who you ask to. Some old people or simple people with no specific economic knowledge will tell that they want the old Lira, beacause they are pissed off from the speculations during the changeover period, by those economic operators with pricing power. Prices, especially in restaurants and pizzerias, nearly doubled in a two years. Other food prices in supermarkets actually didn't go up that much, they went up in line with official inflation, but people are pissed off and complain anyway, because they like to complain
Some clever politicians, a few years ago, used to exploit that feeling about the lira, that's the reason you can now read that old statements.
Now it's completely different.
If you ask some more educated people, they will tell you "NEVER ! thank god we have the euro", because with the old Lira, in the current financial difficulties, with soaring prices of oil and commodities, it would have been a catastrophe.
We already had the '70, with raising oil prices, and salaries linked to inflation, and a resulting even higher inflation. it was really really really bad.
Political and monetary power are in different hands. Central banks are privately controlled. Political power changes every 4 or 5 years with the elections, monetary power doesn't.
I think that the international bankers that invented the euro will keep the system going, forcing reforms whereas necessary. In Italy the next move will be a big pension reform to cut public debt.
With regards to your other question, the euro at multi year high against other currencies, actually I'm looking right now at a 5 year chart of EUR/CAD, EUR/JPY, EUR/CHF, EUR/AUD, but they are not. Euro is high only against US dollar and UK pound.
Even EUR/CAD is at 1.5884, like in the period 2002-2005.
Multi-year being more than 12 months. So EUR/CAD qualifies.
I didn't want to mention every possible currency and the timeframe.
EUR/AUD is extremely high - especially if this is a "rate" story like people blaming the fed claim. Australia has much higher rates, yet the EUR has been rising against it quite harshly.
If there was any chance of a break-up of the EU, there wouldn't be anywhere near the resolve to press ahead full-speed with further ratification.
I sure sign of this intent was the exclusion of both the French and U.K. people from voting on the Lisbon treaty - they "played fair" first time around, basically believing that the French would vote for stronger ties, so granted them their referendum - which they then voted against! The U.K public were always against stronger ties and the Euro, and despite multiple suggestions by their government that 'the people' would be allowed a vote, it was known that they would vote against it - so they weren't given the chance either...
Someone made the point that those that complain loudest, have the least economic clout and no power base. So imo, it's full steam ahead for the Euro, albeit, after a brief lull maybe
I sure sign of this intent was the exclusion of both the French and U.K. people from voting on the Lisbon treaty - they "played fair" first time around, basically believing that the French would vote for stronger ties, so granted them their referendum - which they then voted against! The U.K public were always against stronger ties and the Euro, and despite multiple suggestions by their government that 'the people' would be allowed a vote, it was known that they would vote against it - so they weren't given the chance either...
Someone made the point that those that complain loudest, have the least economic clout and no power base. So imo, it's full steam ahead for the Euro, albeit, after a brief lull maybe