THE EURO ZONE needs two currencies!!

[JohnSmith]

I think it is obvious in the European Bond Markets that this EURO currency is not working in the way intended. All I have to say is look at Greece which is now in 7 years of austerity.

France and Italy both have quite high unemployment and their protectionist policies since the end of WWII are now causing problems for their economies that now have to compete with a strong and powerful unified German Federal State.

The currency has to be split into two currencies one controlled by a board of governors with France as the leader and the other will remain in Frankfurt under German influence.


They should split it something like this:

The EuroFranc headed by France would include the PIIGS(Italy,Greece,Portugal,Spain,Ireland) Belgium,Malta,Cyprus.

The EuroMark headed by Germany will include Austria,Finland,Netherlands,Denmark,Latvia,Lithuan ia,Luxembourg,Estonia.

I am sure their are other countries that need to be added.

This is the only way to save the EU unless you impose a fiscal union which is something Germany certainly does not want.

[BeerBaron]

I think it is obvious in the European Bond Markets that this EURO currency is not working in the way intended. All I have to say is look at Greece which is now in 7 years of austerity.

France and Italy both have quite high unemployment and their protectionist policies since the end of WWII are now causing problems for their economies that now have to compete with a strong and powerful unified German Federal State.

The currency has to be split into two currencies one controlled by a board of governors with France as the leader and the other will remain in Frankfurt under German influence.


They should split it something like this:

The EuroFranc headed by France would include the PIIGS(Italy,Greece,Portugal,Spain,Ireland) Belgium,Malta,Cyprus.

The EuroMark headed by Germany will include Austria,Finland,Netherlands,Denmark,Latvia,Lithuan ia,Luxembourg,Estonia.

I am sure their are other countries that need to be added.

This is the only way to save the EU unless you impose a fiscal union which is something Germany certainly does not want.

And what would you do with the former eastern bloc countries?

[Melki]

VBI (=very bad idea)

This is one of the reasons why Marine Le Pen scored so bad at the election. Claude de Villeroy-Galhau, president of the Bank of France explained why.

Let's gently stick to Euro, and thus avoid a world financial crisis...

[JohnSmith]

And what would you do with the former eastern bloc countries?

I am not sure it depends on a couple of factors. Such as how strong their economies are with imports/exports and if they do better with a weak or strong currency.

This idea that a Strong currency is good for an economy is absolute bullshit. Japan and Italy(until1999) have been export driven economies and intentionally weaken their currency so they could grab market share.

[JohnSmith]

VBI (=very bad idea)

This is one of the reasons why Marine Le Pen scored so bad at the election. Claude de Villeroy-Galhau, president of the Bank of France explained why.

Let's gently stick to Euro, and thus avoid a world financial crisis...

That is not what history tells us. The French revalued their currency in 1957. It did not cause a collapse. The German Wiemar republic had a currency collapse but that ended very quickly and they started to grow quite quickly afterwards.

The Financial crisis will happen no matter what anyway. Greece simply will exit at some point and the European Bond markets will EXPLODE. A planned transition needs to be accounted for.

[Melki]

That is not what history tells us. The French revalued their currency in 1957. It did not cause a collapse. The German Wiemar republic had a currency collapse but that ended very quickly and they started to grow quite quickly afterwards.

The Financial crisis will happen no matter what anyway. Greece simply will exit at some point and the European Bond markets will EXPLODE. A planned transition needs to be accounted for.

Yes, because with two currencies, we would look like a Banana Republic like Cuba. Now you understand why Le Pen's electorate got scared.

[JohnSmith]

Yes, because with two currencies, we would look like a Banana Republic like Cuba. Now you understand why Le Pen's electorate got scared.

That makes no sense Cuba is one of the only Communist countries left in the world along with North Korea.

A weak currency is not a bad thing. Looks at Japan and South Korea. A weak currency makes you more competitive in the world economy.

Let me give you a lesson in economics.

I will use to two largest manufacturing economies in the EU.

Italy
Germany

Both Export Cars:


German productivity is much higher than Italy so the currency in Germany is worth more.

PROBLEM:

Italy now has to export their vehicles at the same price as the German vehicles but German vehicles should be sold for more because they are more expensive. The EURO currency equalizes a FIAT with a VW.

SOLUTION:

Italy in the past would weaken their currency to make their exported vehicles more competitive with German vehicles. Basically undercut the Germans,,, Japan has been doing this for years.

The EURO does not allow for this basic economic principle.

[Melki]

That makes no sense Cuba is one of the only Communist countries left in the world along with North Korea.

A weak currency is not a bad thing. Looks at Japan and South Korea. A weak currency makes you more competitive in the world economy.

Let me give you a lesson in economics.

I will use to two largest manufacturing economies in the EU.

Italy
Germany

Both Export Cars:


German productivity is much higher than Italy so the currency in Germany is worth more.

PROBLEM:

Italy now has to export their vehicles at the same price as the German vehicles but German vehicles should be sold for more because they are better. The EURO currency equalizes a FIAT with a VW.

SOLUTION:

Italy in the past would weaken their currency to make their exported vehicles more competitive with German vehicles. Basically undercut the Germans,,, Japan has been doing this for years.

The EURO does not allow for this basic economic principle.

WRONG
.
https://www.ft.com/content/614f4a73-...0-51aefcfd5deb

A decision to exit the single currency would consign France to “impoverishment“, high unemployment and inflation.

Leading rating agencies have also warned a Frexit would amount to the biggest sovereign default in history should French debt be redenominated into a new franc, which is expected to depreciate sharply in value against the euro

[JohnSmith]

WRONG
.
https://www.ft.com/content/614f4a73-...0-51aefcfd5deb

A decision to exit the single currency would consign France to “impoverishment“, high unemployment and inflation.

Leading rating agencies have also warned a Frexit would amount to the biggest sovereign default in history should French debt be redenominated into a new franc, which is expected to depreciate sharply in value against the euro

Depends on how it would be done but you may be right France may be the product of that famous Eagles song when it comes to the EURO currency:

Last thing I remember, I was
Running for the door
I had to find the passage back to the place I was before
'Relax' said the night man,
'We are programmed to receive.
You can check out any time you like,
But you can never leave!'


You European Liberals Are trapped into this Forth Riech of Frankfurt



The EU is ultimately controlled by the brutal past of European History that make Europeans blind to some degree
The ones that control your money,, control your political power:

[BeerBaron]

a weak currency only gives you export power, thats not all there is to a currency, a weak currency destroys buying power because most goods are priced in usd. the canadian dollar is a good example, because it is tied to oil and oil has plummeted the buying power of the cad has gone down while exports haven't really risen all that much. there is a balance.