Warning: Euro may be terminal

[lovuian]

http://feeds.bignewsnetwork.com/?sid=2e638a87f9495a7d

Another respected European economist is warning of the euro's collapse unless there is progress towards political union.

Paul de Grauwe of Belgium's Catholic University in Leuven is warning the euro is bound to collapse in 10 to 20 years because there is no clear movement toward political union in Europe, the EU Observer reported Monday.

Last week a new member of the European Central Bank's board, the German Bundesbank's vice president, made a similar point.
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A warning to the Iranian Bourse club... Gas ? euro bad idea...
:rofl:

[unblock]

1. well he does raise a good point.

the euro is on a healthy track and the dollar is not.

however, the dollar has more history and stability behind it (shrubs efforts notwithstanding), and the economic union that fored the euro has yet to be seriously tested. my own money, quite literally, is behind the euro sorting it all out, but it is hardly without risks.

[LetsGoMurphys]

2. Can the bourse club use any other currency?

[Renew Deal]

3. Bring back the Drachma

[Odin2005]

4. The Neo-Liberals have been predicting impending doom for the...

European economy for ages now, and nothing happens. They are so deluded with thier "government is bad, the welfare state is bad, regulations are bad, corporations are good, unrestricted free trade is good" mantra that it has become a religeous creed. They truely are Free Market Fundimentalists.

[genieroze]

5. They sound like Libertarians.

[jerry611]

6. Experts have been saying this for awhile

I've heard several economic experts say that the Euro will collapse within 20 years. Which could spell major problems for the world economy if this indeed happens.

There is no way the voters in Europe are going to willingly unify politically within 20 years. The Dutch and French both voted down the constitution, and it was also very likely to fail in Britain. Now they are back to square one again.

[mmonk]

7. Not yet.

"Now they are back to square one again."

The dollar right now doesn't have any real sound backing. Nations are using it still because that has been the system but they have slowly been divesting. They can't divest too quickly as to foment economic collapse. Continuance on the current path will require a drop in hubris from American governments that no longer give them real faith assurances. Only the future will tell. The euro doesn't require unification as much as it requires acceptance as a currency.

[Name removed]

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[Demeter]

9. They Said the Euro Would Never Fly....

When it was introduced, they couldn't give them away. But the yen collapsed, then Dubya got hold of the printing press, and voila' a new world currency is born!

While the "experts" may not want the Euro to succeed, I think it will. It will succeed because the separate nations and their international rivalries and tensions must be compromised to keep the currency stable. One nation cannot jerk another around without all of them immediately feeling the pain and applying significant pressure.

Too bad the US doesn't have that kind of feedback--my state of Michigan is dying of this economy, but nobody notices or cares. Just move to another state, like Texas, or Florida, where the Powers that Be shower the federal monies they tax out of Michiganders! The Eagle does not shit here, unfortunately. Just the buzzards.

I cheer any country or collection of countries on the road to democracy: Viva Latin America, Viva Chavez, Morales, hell, even Castro looks better than we do as a practical display of democracy, even if he doesn't mouth the words. Hail the European Union, long may it grow in grace and graciousness! Somebody has got to provide an example to the heathens in the US of A.