currency wars

[asylum]

just a question about the euro, do all the member state ,ie france ,germany and so on have they all got the same interest rate level seeing that they all use the euro?

[SimonPB]

yes

[richardw]

Yeah, it's like tying your old lame dog to your greyhound. One won't be happy, maybe both.

[asylum]

thanks i can see how this could affect poorer state countries, i suppose the interest of the larger economic states takes centre stage.

[Wizard]

ECB is determining the rates every month. They are based in Frankfurt. A bit off the topic.one day we won't speak of the different countries but Europe as a whole. Maybe 100 years from now.

[#6]

I'm of the opinion that in 100 years time history students will be looking back at the Euro and laughing, saying "what a silly idea that was"

[SimonPB]

bet they said the same about the US union in the early days ..

[#8]

But was that not based on regional identities and won on attrition? This is a much larger and an economic war affecting whole independant countries with completely different backgrounds, upbringing ect by placing them under one currency.

[SimonPB]

yes.no.maybe ..

[Wizard]

EUR is now 10 years old. Still young! It was a test for EUR during the recession that it survived. The critical moment was.Would the German taxmen accept the weakness in one of the member states in this case Greece that they help for the turnaround of the country or would they withdraw from the EUR. We know what the answer is already.. EUR is here to stay!

[#11]

Did the Euro not survive because it was flooded with more Euro's? Greece is stable because they gave it more Euro's. What happens when those Euro's are removed? The UK is flooded with tourists from Europe, why? because the Stirling decreased in value allowing for balance. When you have Greece selling the same product at the same price as France (Example) when the income is nothing close to France is this not a problem? once again this is OMO

[Wizard]

Germany could have withdrawn from the Union seeing that it was coming on their back to save Greece. However they CONSCIOUSLY lowered their standard of living in order to save the EU. In the long they will score more out of it than to break away. The example with France brings more fair competition. Prices are different all across EU but that's just simply demand and supply at work. Britain will also join the monetary union..just that they are a bit more conservative than the rest. Will see how long that's going to take.20-30 years. When the whole of Europe joins they will as well!! If the financial crises did hit them any harder ..and the average Englishman started to scream that his pounds are worth nothing..none of them will look at the picture of the queen on their currency and all of them will run to adopt the Euro. But like I said..Didn't get that bad!

[SimonPB]

ya .. read the latest Business Week n the German unification and recent succcess of their economy, which is in part boosted by their being in the EU ..

[#14]

Wells yes this is my point. Germany and France and GB will succeed. The currency helped but the european legislation surely is the main cause? even with DM Germany would be a high growth country if legislation helped export within europe. but isn't the Euro just being held up by 3 or so countries? what about Spain,Portugal, Hungary, latvia , Estonia, Romania ect ect ect. Greece almost caused a rift.....thats only 1 country so far in 10 years... I don't believe its over just yet. Germans French and British will and can only take so much.

[#15]

What, you think a Frenchman will let you feed him eisbein in favour of his favourite national dish? Or do you think we will ever be able to convince anyone to eat Haggis? Europe has been fighting wars and battling identity for thousands of years - this is not the first time you have had unity across most EU states, the Romans enforced it for what - 500 years?

[Wizard]

I haven't seen countries outside the Eurozone, but in the EU, that have any problems with their fiscal deficits and being questioned whether they should join the Eurozone or not. It may get a bit tougher for them now to get accepted.that's all. Recession's over..the big problems are behind us.We still emphasis on countries in Europe.but not in 100 years. Essentially the USA is made up of 52 countries and the concept works. Even Germany itself was made up of 39 sovereign states back in 1815 and came to being as 1 Germany 100 years later..the way we know it. History shows that unification is the natural state through which history progress.

[#17]

Those countries I listed are in the Eurozone. along with many others.

[Wizard]

Hungary, Latvia , Estonia and Romania are not in the Eurozone but in the EU

[#19]

My mistake, Apologies