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The Euro, Could It Fail?; merged with Merkel says there is a problem with the value of the euro
Topic Started: Feb 13 2017, 09:31 PM (1,359 Views)
Opinionater
Senior Member
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I think it's under pressure and there is a risk of it going into free fall.

Why you may ask, well let's take a look at the problems it is facing.

Greece, that in itself is a big risk, more bail out loans, no hair cut its just not going to work.
The only way out, well two ways, get them out of the Euro or give them a major haircut. They are not going to do any of the above.

BREXIT, whilst we are not In the Euro Zone leaving the EU will impact on the stability of the Euro as fears of others leaving add to the problem.

What do you think?

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Rich
Senior Member
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RoofGardener
May 17 2017, 06:44 PM
Logically, and regardless of the above post, surely Buccaneer is correct ?

In the long term, how can multiple nations share a common currency, with a common recognised value, unless there is coallescence ?

You start of thinking in terms of convergence of obvious things like interest rates and inflation et al , but ultimately you have to consider how the individual nations PRODUCE "value", and hence how that converts into currency. And that means pretty much harmonising the laws involving how business is operated. That would ultimately involve the laws relating to tax levels, corporate structures.. even down to things like fraud. And when you do that, you "harmonise" nationality.
In my "limited" experience in life, I am of the opinion that the only case in which "one size fits all" is with condoms. :P

(mind you, I could be stretching things a bit)
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Tigger
Senior Member
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RoofGardener
May 17 2017, 06:44 PM


In the long term, how can multiple nations share a common currency, with a common recognised value, unless there is coallescence ?

Well the US of fifty states seem to manage ok, and it has very rich states such as California and Texas and some very poor ones, states can also set tax and enact local legislation. Sounds like somewhere else doesn't it?

I'm sure you've got the general idea now.
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Tigger
Senior Member
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Rich
May 17 2017, 08:20 PM
In my "limited" experience in life, I am of the opinion that the only case in which "one size fits all" is with condoms. :P

(mind you, I could be stretching things a bit)
Nice cliches!
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Affa
Senior Member
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Tigger
May 17 2017, 08:29 PM
RoofGardener
May 17 2017, 06:44 PM


In the long term, how can multiple nations share a common currency, with a common recognised value, unless there is coallescence ?

Well the US of fifty states seem to manage ok, and it has very rich states such as California and Texas and some very poor ones, states can also set tax and enact local legislation. Sounds like somewhere else doesn't it?

I'm sure you've got the general idea now.
:thumbsup:
said before I would have.

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Rich
Senior Member
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Affa
May 17 2017, 08:51 PM
Tigger
May 17 2017, 08:29 PM
RoofGardener
May 17 2017, 06:44 PM


In the long term, how can multiple nations share a common currency, with a common recognised value, unless there is coallescence ?

Well the US of fifty states seem to manage ok, and it has very rich states such as California and Texas and some very poor ones, states can also set tax and enact local legislation. Sounds like somewhere else doesn't it?

I'm sure you've got the general idea now.
:thumbsup:
said before I would have.

And that is what the UK has decided to do......good, ain't it? :thumbsup:
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Steve K
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Once and future cynic
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The Buccaneer
May 17 2017, 04:12 PM
Finally, an admission from Mario Draghi that the EU will need to have a 'political union' to ensure the continuation of its bastard currency.

http://www.express.co.uk/news/world/805762/Netherlands-MP-Thierry-Baudet-Forum-Voor-Democratie-Mario-Draghi-Brexit-Eurosceptic
I see the Daily Express is still twisting words into false headlines

And seems you didn't read beyond that headline. Unwise when it's the Express
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RoofGardener
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Lord of Plantpots
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Tigger
May 17 2017, 08:29 PM
RoofGardener
May 17 2017, 06:44 PM


In the long term, how can multiple nations share a common currency, with a common recognised value, unless there is coallescence ?

Well the US of fifty states seem to manage ok, and it has very rich states such as California and Texas and some very poor ones, states can also set tax and enact local legislation. Sounds like somewhere else doesn't it?

I'm sure you've got the general idea now.
Sounds like "somewhere else" ? Well... not ENTIRELY. And not YET.

You see, you have to bear in mind that, whilst the US states may set local laws, they have to comply with the laws set by Brussels. I mean.... Washington. The individual states have to follow ALL the federal laws, and may only create their OWN laws when they do NOT contradict the federal laws.

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Tigger
Senior Member
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RoofGardener
May 18 2017, 06:20 PM


You see, you have to bear in mind that, whilst the US states may set local laws, they have to comply with the laws set by Brussels. I mean.... Washington. The individual states have to follow ALL the federal laws, and may only create their OWN laws when they do NOT contradict the federal laws.

So you could not refute the fact that many European nations/US states function well with a single currency?

You've actually reinforced my point here because EU member nations have way more autonomy that US states so your point seems to be null, and what do you think might happen if some US states wanted out of the federation, say like the UK?
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RoofGardener
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Lord of Plantpots
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Interesting point Tigger. However, if we are going to use the USA as an example, then it is worth pointing out that the dollar was successful in the long term based on complete political union of the States into a Federal Supernation. (what we now call the USA).

I don't believe the Euro is in immediate danger of failing, because a Federal Superstate is what the EU is aspiring to. As long as progress continues to be made towards that goal - if only slowly and incrementally - then the Euro can be kept alive, and any inconsistencies or problems 'papered over'. After all, a currencies success is largely a function of perception. As long as the international money markets retain confidence, then the Euro should be OK ?
Edited by RoofGardener, May 19 2017, 08:15 AM.
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The Buccaneer
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Tigger
May 17 2017, 08:29 PM
RoofGardener
May 17 2017, 06:44 PM


In the long term, how can multiple nations share a common currency, with a common recognised value, unless there is coallescence ?

Well the US of fifty states seem to manage ok, and it has very rich states such as California and Texas and some very poor ones, states can also set tax and enact local legislation. Sounds like somewhere else doesn't it?

I'm sure you've got the general idea now.

The USA has a democratic political, fiscal,taxation and legal system, the EU hasn't which is why the € is a bastard currency. It's not rocket science to understand this principle.
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Steve K
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Once and future cynic
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The Buccaneer
May 21 2017, 02:57 PM
Tigger
May 17 2017, 08:29 PM
RoofGardener
May 17 2017, 06:44 PM


In the long term, how can multiple nations share a common currency, with a common recognised value, unless there is coallescence ?

Well the US of fifty states seem to manage ok, and it has very rich states such as California and Texas and some very poor ones, states can also set tax and enact local legislation. Sounds like somewhere else doesn't it?

I'm sure you've got the general idea now.

The USA has a democratic political, fiscal,taxation and legal system, the EU hasn't which is why the € is a bastard currency. It's not rocket science to understand this principle.
Excuse me but haven't you and the others been telling us for years that the EU has imposed all that ruling structure on us for even longer?

You weren't fibbing were you? ;-)
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Tigger
Senior Member
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The Buccaneer
May 21 2017, 02:57 PM

The USA has a democratic political, fiscal,taxation and legal system, the EU hasn't which is why the € is a bastard currency. It's not rocket science to understand this principle.


Pffftttt! :facepalm:

Not much point in responding to this given the level of ignorance regarding the structure of the Euro, which in your case seems to be gleaned from reading tabloids.
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The Buccaneer
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Sigh.

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Tigger
Senior Member
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The Buccaneer
May 27 2017, 03:00 PM
Sigh.

Read this and WEEP! :)

The Euro has had it's best run in more than a decade and is looking decidedly strong, also former PIGS of RJD legend are doing very well now with both Spain and Ireland growing quicker that Britian, not to mention some of the EE nations.

And if you've got a few quid to spare have flutter on shorting the £, as I see several UK based parasitic hedge funds are now steathily moving into position to cash in on further falls.......
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