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Hindsight is always 20/20, as they say. I used to live in the heart of the Euro - Frankfurt - when it was launched and I remember hearing very different things at the time. Instead of inequality, the Euro was expected to foster equality when combined with
free labor markets within the larger EU region. This made sense then, it continues to make sense now. Besides, former currencies of now Eurozone countries were converted to EUR at non-uniform exchange rates - 2DM:1EUR and 6FFR:1EUR if I recall correctly -
that reflected their respective strengths. Ten years later, it's another matter whether the expectations have materialized or not, but, for one, that's how I remember them and, for another, I won't blame Brussels for the alleged profligate behavior of Greece
and a couple of other floundering nations in the Eurozone.
You make my point very well. You believed what was being touted by politicians like millions of other people. It was sold so well you still believe it today despite all the evidence before you.
Who was it that created the Euro and the Eurozone? Who created the regulatory infra structure? Who sold the story that Europe would become the major global market? Who allowed strong economies to thrive upon the weak? Who still fail to lead and make decisions
to get Europe out of the Crisis? I can go on and on but Brussels is on trial what is the case for the defence? Or isnt there one?
I don't recall these views being expressed in the mainstream ten years ago, so you make my point about hindsight being 20/20 very well. Brussels didn't force anyone to join the EuroZone. It invited individual countries fulfilling certain conditions to join
the EuroZone. Greece and other countries took the decision to join it just as UK decided not to join it. Brussels is not culpable and doesn't need to put up any defence. If anything, it's the governments in Greece and the other floundering countries in the
EuroZone who should be on trial. They need to defend not only their past decision to join the EuroZone but also their present plight.
Wrong! Who changed the entry conditions to allow Greece and other weaker economies in? As for people warning about the project there was plenty in the UK
Why, when it was so easy for countries to join the Euro, is it somehow impossible for them to now leave without all the hohah. It represents a failure, a bankruptcy, walking away from debts which the Eurozone have to write off, and starting again with severe
difficulting in transacting business outside Greece as a result. Its like a family handing in the house keys to the bank because they cannot afford the mortgage any longer and there's no bank of mum and dad to help.
As with everywhere else, there is plenty of money tied up in Greece, and plenty owned by Greeks in US bonds or whatever, and they will have to run away or bring it back into the new currency. And still the average Greek will suffer, prompting a 3rd world
and civil order catastrophe which Euro countries will have to help with like a Social Services handout.
The money in Greece got sucked up like a sponge, but spent. Spent paying loans and buying goods. Buying goods probably mostly from Euro-producers, in Euros, so the money floats around the monetary system and ultimately may have to be used by the richer
countries to prop up the deficit Greece has. Like in life, when you spend more than you earn, its miserable, especially when you seen no immediate prospect to earn more and balance the books, and when the 'state' stops helping you out, you sell up what you
have and start again. You'll still need handouts, but at least your costs will be cut.
19 Sep 2007