Saturday, May 22, 2010

Euro must change to exist!

After 10 years the Euro is about change.
As I have said before, how can 1 Central bank govern different economies, when each country is different?
How can prices only differ in other countries according to inflation.

Both Germany and France when creating the Euro wanted UK help to stop one of the other two gaining power and the UK refused to get involved.
In fact the UK has done brilliant from the Euro by staying out of it with regards to exports. 45% approx of our exports go to Germany!

The question is: why on earth did Germany create the Euro when it had one of the strongest currencies in the world at the time.
A leaders ego springs to mind.
It appears that Germany Chancellor Kohl had doubts at the time and so did the French.

Now the Germans are licking their wounds and are trying to get UK backing to help.

Because of the way that Europe has made it's Constitution it needs the UK's backing in order to change the Euro and how it's managed.
This is where the UK will get their power back from the Eruo Bureacratic ponses with no common sense!!

However, this could cause the UK a political storm due to the Lib-Dems thoughts on Europe and the Conservatives.
The Conservatives must be strong and not weaken, otherwise we will become embroiled in the Euro nonesense.

For the Common man and about Greece - How can borrowing even more billions of Euros dig them out of the crap. The interest payments alone can't be paid by their Olive harvests!!!

Only 16 out of 27 countries in the EU have adopted the Euro, doesn't that tell you something???? Maybe we will take what we can from these idiots, but not take their currency and save our economies from being taken over by Heir or Monsieur something or other.

Italy, Spain and Portugal are also in trouble so the bailing out has not stopped. The French do nothing apart from Hot air and the Germans cannot afford anymore.

After so many years of managing their economy and currency they are in the position of not knowing what to do.
If you look at the French before the Euro, they were also in trouble!!

Solution:
Each country must manages it's own economy and Interest rates.
Disband the Euro Central bank.
Forget Eutopia or Federalism

This will mean that inetest rates in countries will rise significantly, but this is part of Austerity-stop borrowing!!
Inflation may have to rise to save.

A plus side is that Consultants like me will be needed to break up the currencies and revert back!!!

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