Euro On It's Way Out...

LBR · 11-29-2011, 05:23 AM

According to a news story I was listening to yesterday (forget which one), the only way Europe is going to solve it's monetary woes is to have every country go back to it's own monetary system.

Oddly, this makes me wonder what the televangelists are going to say. When the Euro came out, there was a lot of crowing about that being just another "sign" that the end was near--one world currency and one world government was just around the corner. Now it's days are numbered.

Obviously I don't put any faith in millionaire preachers that wear makeup.

Chad

bergall · 11-29-2011, 05:32 AM

.....oh the end is near all right ! The end of financial security. I've never seen anything like this before...the end of an entire currency and economy based upon it....watch the markets plummet....

Alsatian · 11-29-2011, 06:29 AM

No doubt the markets will plummet if the Euro dies. Markets do not like uncertainty. Taking a longer view, however, I think this creates opportunity for some businesses, some people. Where and how, I'm not sure.

The EU was formed to attempt to economically compete more effectively with the US. The individual European countries felt like they were at a size disadvantage. I can't say whether this strategy actually achieved any of its objectives . . . but it seems pretty obvious that if the EU collapses the strategy failed and these nations are back where they started from, or more likely weaker than when they started. It is possible that their loss will be our gain.

At the same time, it may be that rather than the EU completely dissolving and returning to the original states that instead the EU reforms, jettisoning the weak players and keeping the strong economies.

In retrospect, it just seems kind of odd. The way economics works these days seems to be largely independent of national boundaries. How exactly was creating a monolithic pseudo-nation (the EU) going to help their economies at a time when national boundaries seem to have little influence on economics? That is, Ford and Nestle are in some sense borderless -- their economics are independent of how you draw the borders. How does the EU play in such a globalized economic environment? Was the EU comperable to the Maginot Line in France? The perfect answer to an obsolete question? The Maginot Line would have worked great in a war fought like WW-I; it was a waste of money and totally ineffectual in the Blitzkrieg war of motion enabled by mechanized armor of WW-II. Actually, on further thought, I'm not sure the Maginot Line would even have worked in WW-I. My recollection is the Maginot Line was along eastern France, facing Germany. In WW-I, the main German thrust came into France from the north, the Germans swinging through Belgium and then down on France from the North. Feel free to correct any historical errors in this characterization, as I may be missing some important points in this analogy.

bergall · 11-30-2011, 01:42 AM

I believe the failure of the Euro and the dissolution of the EU will be devastating in the markets. THe key here, is to ensure a business-friendly climate here at home to capitalize on the vacuum these failures will result in. THe key to that, is the removal of demokrats and socialists from our government, and the removal of their impediments to business..