Adding to the increasing number of threads on the economy, whither the Euro? And whither our participation in it?
No-one seriously expects Germany and Italy to pull out, as some of their more outspoken politicians seem to be suggesting.
However, in country after country, the euro is being blamed, rightly, for the economic taupor in the main. Of course, you have to consider that tax rates across Europe are generally higher than in the UK and that the labour markets are far more restrictive. It would be daft to blame the euro on its own.
The euro is a financial straightjacket. The main reason for it is the interest rate. Put it this way, it's hard enough setting a single interest rate for the UK - what benefits the South rarely benefits the North.
How can the demands of the Irish economy and the Greek economy be catered for by a single interest rate? How can these 12 countries have not seen this structural impossibility in the planning?
The euro is also being blamed, possibly wrongly, for price hikes across the currency area. People feel a resentment towards this project which has been foisted upon them.
The rules of membership are constantly being broken by France, Germany and other EU economies. How can the world have confidence in the currency? It just goes to show how badly the US is performing given the Euro's rise in the last two years. This is not a vote of confidence in the euro project, it's simply investors taking flight against the strange US economic policy.
I've always been against the Euro. Not for politicial reasons, I have to say. I like Europe - I have no problem sharing some powers and responsibility with them.
However, the Euro has always been doomed as an intellectually flawed political project. I could never support it without major structural change.
For all of you who have supported our joining the Euro, or for those of you who still do, has your position changed? And if so, why?
The Euro - time for a 'told you so'?
I've been against the Euro from the start. My main reason (and still my main reason) is that it would mean we would have to involve ourselves somewhat in Europe's financial problems. Other reason, however, is the confusion brought about such a change. I could (eventually) get used to Euros just as the French and Spanish have, but it takes time to acclimataise to objects' values in a new currency, and mechants would take advantage of this fact to hike the prices shortly after the change. It's what happened in other european countries (though this is not an entirely fair assertion as other factors are involved).
I think Black Wednesday (When the UK pulled out of the exchange rate mechanism) was a defining moment for many who were undecided about a single currency and for many, they haven’t looked back on decision not to back the single currency.
There are obvious short term benefits, the manufacturing industry would clearly benefit from a lower valued currency. But as far as I can see, that’s about it. As the manufacturing industry is all but dead in this country anyway (accounting for only 26% of the GDP last year and falling) there can be no real benefit to adopting a single currency. Especially one that is currently in a value war against a rock bottom dollar sniffing the impending inflation that will no doubt cripple it further.
But then again, there has rarely been a time when European currencies have not been a chaotic circus ring of overvaluation and inflation. At the end of world war one, when Germany had to repay a global debt of some $33 Billion, there was no way they could do it. Answer? They just printed more money until inflation set in and it took 42 billion German marks to buy 1 US Cent.
There are obvious short term benefits, the manufacturing industry would clearly benefit from a lower valued currency. But as far as I can see, that’s about it. As the manufacturing industry is all but dead in this country anyway (accounting for only 26% of the GDP last year and falling) there can be no real benefit to adopting a single currency. Especially one that is currently in a value war against a rock bottom dollar sniffing the impending inflation that will no doubt cripple it further.
But then again, there has rarely been a time when European currencies have not been a chaotic circus ring of overvaluation and inflation. At the end of world war one, when Germany had to repay a global debt of some $33 Billion, there was no way they could do it. Answer? They just printed more money until inflation set in and it took 42 billion German marks to buy 1 US Cent.
I say it only because I'm good looking...
YAY! Hyper-inflation! I'm sure it still occurs down my local where beer costs more than anywhere else (including Londumb) - perhaps they've opted out and set their own rates. Likewise that could make it a tax haven - I wonder if it's worth storing my savings there?Snu wrote:They just printed more money until inflation set in and it took 42 billion German marks to buy 1 US Cent.
Good Lord!
Maybe you should write to your pub's brewery as I am sure there are strict limits as to how much of a mark-up pubs can place on beers and spirits. Pubs don't actually make much money in the selling of beers and spirits strangely enough. That bag of crisps you bought the other night? It'll probably have a 300% markup. This is also why nearly all pubs do food as this is where the money can be found. But we of course digress...Isonstine wrote:YAY! Hyper-inflation! I'm sure it still occurs down my local where beer costs more than anywhere else (including Londumb) - perhaps they've opted out and set their own rates. Likewise that could make it a tax haven - I wonder if it's worth storing my savings there?Snu wrote:They just printed more money until inflation set in and it took 42 billion German marks to buy 1 US Cent.
I say it only because I'm good looking...
Well I tend to avoid paying down the pub full stop. Winning money on quizes helps fund things but also a generous landlord who enjoys talking until silly hours in the morning means you can walk in at 10, buy a couple of pints (maybe buy him one too) and then you're sorted for the rest of the night.Snu wrote:Maybe you should write to your pub's brewery as I am sure there are strict limits as to how much of a mark-up pubs can place on beers and spirits. Pubs don't actually make much money in the selling of beers and spirits strangely enough. That bag of crisps you bought the other night? It'll probably have a 300% markup. This is also why nearly all pubs do food as this is where the money can be found. But we of course digress...Isonstine wrote:YAY! Hyper-inflation! I'm sure it still occurs down my local where beer costs more than anywhere else (including Londumb) - perhaps they've opted out and set their own rates. Likewise that could make it a tax haven - I wonder if it's worth storing my savings there?Snu wrote:They just printed more money until inflation set in and it took 42 billion German marks to buy 1 US Cent.
Good Lord!
[/list]I thought £3.00 was expensive enough, the thing that makes you laugh the most is that you can get the bigger bottles of WKD/Smirnoff etc in most Supermarkets for about £2.Jamez wrote:There's a bar in Cardiff called 'Copa'. They charge £4.20 for ONE bottle of Reef/Smirnoff/WKD etc.
I nearly had a heart attack when the bloke said "That's eight-forty please mate!"
The best is the Mr Smiths Night Club in Warrington, or according to TVDragon The Hit Man and Her Scally Club, which charges you £6.00 entrance fee on Fridays & Saturdays, then after that bottles are £3.00!
Anyway back to Europe...
steve