Germany Is Screwing All Of Europe Because It's Too Big

[Melech 9,900]

Ive been sayin this forever. Same currency means same exchange rate for everybody and same monetary policy (interest rates, money supply etc)

Economic conditions vary from Country to Country and having the same currency and same rxchange rate for everyone is just plain dumb

U dont have to be a genious at economics to get a simple concept like that :roll:

yeah, let's not forget euro was forced on us and countries like France see now what the did 

[Economy 52,844]

yeah, let's not forget euro was forced on us and countries like France see now what the did

There was a proposal some years back for North America to use the same currency and call it the "Amero". Canada, US and Mexico would use it

Im just thinking if we had followed through, Canada would have to be stuck with 0% interest rates and quantitative Easing when our economy was too strong for that and wed end up getting high inflation as a result

Canadas economy is $1.8 trillion. And Mexicos just over $900 billion last time i checked. The US on the otherhand is like $17 trillion

They would win monetary policy and do whatever suited them... And Canada and Mexico would be totally screwed over by the US. Seriously like no! :crossed:

[Luc 4,776]

so basically we can blame Germany for the lack of economic growth and inflation in the EU, because they're too egoistic, while they have to think about the whole union when being in an union like the EU.

[Ivannn 1,150]

well without EU the situation would be even worse

[Economy 52,844]

well without EU the situation would be even worse

doubtful

[Luc 4,776]

There was a proposal some years back for North America to use the same currency and call it the "Amero". Canada, US and Mexico would use it

Im just thinking if we had followed through, Canada would have to be stuck with 0% interest rates and quantitative Easing when our economy was too strong for that and wed end up getting high inflation as a result

Canadas economy is $1.8 trillion. And Mexicos just over $900 billion last time i checked. The US on the otherhand is like $17 trillion

They would win monetary policy and do whatever suited them... And Canada and Mexico would be totally screwed over by the US. Seriously like no!

But Germany is way different. It's not that big, perhaps 1/7 of the EU lives there, but they have too much power for that. They get to block things like this, while countries like Italy, Spain, Portugal, France and Greece combined, which all need a more stable economy, more inflation, less debt, less unemployment, have a bigger GDP combined and a way bigger population.

doubtful

The EU is good for our economy. That's a fact. Globalisation, better relations, cheaper import/export, more power in the world, etc.

[Ivannn 1,150]

European countries are not atractive enough for huge investments even with Union where you can do business with 27 other without any extra payments,borders,rules ... I can only imagine the economical growth without any of that and with 28 borders, rules, paymenty, extra costs and 28 currencies. Europe is relativly small continet with large number of countries and EU is needed because of the gobalisation. This huge number of countries on our continent cant function well on their own. Euro is new currency and crisis came not long after. It just need time.

[Computer 10,980]

I can't imagine a worse fate than being a country in the EU lacking the ability to set independent monetary policy.

[Ivannn 1,150]

I can't imagine a worse fate than being a country in the EU lacking the ability to set independent monetary policy.

So why every prosperous federation/union has single currency?

[Computer 10,980]

So why every prosperous federation/union has single currency?

But this is not a prosperous federation/union. This is a group of countries which still have autonomy and there is not a strong federal political body. It is too much a hybrid and we have all of the risks to individual countries that came with central currency but without the unity of a federation.

[Ivannn 1,150]

But this is not a prosperous federation/union. This is a group of countries which still have autonomy and there is not a strong federal political body. It is too much a hybrid and we have all of the risks to individual countries that came with central currency but without the unity of a federation.

 

EU is not prosperous union? Many member states are one of the ritchest counstries in the world and non of the member states was not considered poor before 2009 ( and I dont know if it is now ). But crisis hit hard and I am sure that within next couple of years with growth of economy things will come back to what it was before 2009. But to say that EU countries are not prosperous is just silly.

[Computer 10,980]

EU is not prosperous union? Many member states are one of the ritchest counstries in the world and non of the member states was not considered poor before 2009 ( and I dont know if it is now ). But crisis hit hard and I am sure that within next couple of years with growth of economy things will come back to what it was before 2009. But to say that EU countries are not prosperous is just silly.

Generally very prosperous yes I did not mean to say EU is not prosperous in any way. But it is not as a union. When you have some countries about to default (budget issues a few years back) and others arguing over whether to help them or how to help them it does not give a sense that the group is truly a union of economies. And that frustration remains that one country may have a situation where the budget is struggling and they must run the entire country on a currency that they do not control.

I think of the United States and if something were to happen with the budget we can always devalue the currency. Yes there will be consequences but we have control. UK still has that control too. But to be a country in the EU subject to the monetary policy of the union without any real benefit of a strong federal government seems very hard.

Perhaps EU will grow toward more complete unity and become one country with one government. That is what the United States is now, even though in the early history even our states had each its own currency. But I think any political consolidation will be heavily resisted so you will continue to see these issues. The current state sounds so frustrating but perhaps it's better than it seems, I don't know.

[Economy 52,844]

The EU is good for our economy. That's a fact. Globalisation, better relations, cheaper import/export, more power in the world, etc.

but think of the damage of having monetary policy and a currency exchange rate that doesnt match with ur economy at all

 

u can have lots of trade without using the same currency. free trade agreements alone already do almost as much as the currency

 

u dont really have to do that

[Economy 52,844]

Generally very prosperous yes I did not mean to say EU is not prosperous in any way. But it is not as a union. When you have some countries about to default (budget issues a few years back) and others arguing over whether to help them or how to help them it does not give a sense that the group is truly a union of economies. And that frustration remains that one country may have a situation where the budget is struggling and they must run the entire country on a currency that they do not control.

I think of the United States and if something were to happen with the budget we can always devalue the currency. Yes there will be consequences but we have control. UK still has that control too. But to be a country in the EU subject to the monetary policy of the union without any real benefit of a strong federal government seems very hard.

Perhaps EU will grow toward more complete unity and become one country with one government. That is what the United States is now, even though in the early history even our states had each its own currency. But I think any political consolidation will be heavily resisted so you will continue to see these issues. The current state sounds so frustrating but perhaps it's better than it seems, I don't know.

ALL of this!

 

why do ppl pay so much attention to the Central Banks? its because interest rates, money supply or anything to do with monetary policy has a HUGE influence in the general economy, the financial market and inflation rate

 

the moment a Nation cant control its interest rates and has to use a currency witha  totally inappropriate exchange rate for its economic condition because other countries in the Union are in a different state, it does a lot of damage!

 

Every Country in the EU has the benchmark rate at 0.05% and the deposit rate at -0.2%... and the exzcahge rate is the same for everyone... But each economy is in a very different state. All being subject to the same currency is stupid and thats why its not working

 

Any benefits that might come out of this DO NOT compensate the negatives. its a failed experiement. The Union, Free-Trade etc maybe not a bad idea. but common currency is a terrible idea

 

My Country Canada is just 1 Country and they often complain that the Canadian Dollar is not the right value depending on which part of the Country u go. Like Ontario needs a weaker currency for manufacturing and Western Canada sell comodities and a higher currency makes improts cheap

 

if for 1 Country the currency is not right depending on the region, imagine different countries