24 October 2014

Gary Wright

Gary Wright - BISS Research

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A plan for euro replacement

28 November 2011  |  2946 views  |  2

As the politicians in the Eurozone appear incapable of coming up with a rescue plan or any plan to implement an orderly retreat I have been thinking of what might happen.

So far the politicians’ only idea, has been to flood money into whatever country is teetering on the edge, in the hope of buying enough time to resolve the cause of the illness, currently inflicting various eurozone countries, but soon the rest of the world. Clearly this policy has a limited effect and sooner or later an alternative plan has to be found. The difficulties now look like affecting Germany directly with last week’s Eurobond sale only half taken up. This has to be a worry and it indicates that things may be moving faster than anyone feared.

Over coffee the other day, a delegate at an event I attended asked me if I had a solution to the euro crisis and clearly I do not, I’m just like the rest of you trying to think through and analyse each twist and turn, to try and realise where we all are. Anyway, he was just back from Spain and said that the local Supermarket there was only taking foreign currency, not euros. Is this the slippery slope, which starts with local retail outlets and then moves into local businesses and when wages start to be paid in foreign currency?

As the politicians debate and flounder in the implementation of a plan. Almost any plan would be good and at least give the appearance of control. It might be that the death throes come from the tax payer and small businesses as they desert the euro and in effect create a second currency in their country.

If this manifests, could a tax payer revolution point the way for the politicians? No one wants the euro to fail but if as it looks, the path to disaster is inevitable, a strategic withdrawal plan is required. Is this democracy in action with tax payers now taking measures and control away from the politicians?

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Comments: (2)

Roy McPherson - Macroy Consulting - Maldon | 28 November, 2011, 14:32

I can't remember the nationality of the town that was experimenting with holding shopping weekends using the legacy currency; I wonder if its still running, they may come smack bang into vogue.

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A Finextra member | 29 November, 2011, 07:37

I've got a reliable inkjet and happy to print as many new currency notes as you like Gary - so long as you don't deface them.  Printing money to make its way to the bankers coffers seems to be another invogue approach.

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name

Gary Wright

job title

Analyst

company name

BISS Research

member since

2007

location

London

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CEO of B.I.S.S. Research, founder of the BISS Independent Accreditation for all systems and servi...

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