Euro stands 20% chance of survival

[ATG]

There is an international currency already ... it's called the US dollar. Zimbabwe used it, China's currency's value is pegged to it, etc, etc. Pretty obviously they aren't all members of a Unified World Government, unless wikileaks has still got a few surprises up its sleeve.

[WhoseGeneration]

ATG said:

There is an international currency already ... it's called the US dollar. Zimbabwe used it, China's currency's value is pegged to it, etc, etc. Pretty obviously they aren't all members of a Unified World Government, unless wikileaks has still got a few surprises up its sleeve.

Yet still it fluctuates against others.
Meaning, not truly the "one" currency.
States in failure mode are no argument, nor States carefully manipulating the position of their currency to their advantage.
Back to our thread title, the Euro, I'm wanting an explanation of how States with differing economic concerns can have a common currency.
I would have thought that, in essence, this would mean a commonality of such as wages, prices, taxes, pensions and social costs, for stability across member nations to be effective.
Which would imply similar productive ability?

[HundredthIdiot]

WhoseGeneration said:

I would have thought that, in essence, [a common currency] would mean a commonality of such as wages, prices, taxes, pensions and social costs, for stability across member nations to be effective.

Why?

[Deva Link]

ATG said:

There is an international currency already ... it's called the US dollar.

Maggie Thatcher publically said that when the Euro was first mooted.

[Shuvi Tupya]

odyssey2200 said:

ATG said:

, hence why every sane nation on the planet leaves monetary policy in the hands of an independent central bank.

Who owns those central banks?

Zeitgeist, anyone?

The Bush family have lost their banking interest since helping the Nazi war effort so valliantly, so would it be the The Rockefellers?

I know it is not me..

[odyssey2200]

Shuvi Tupya said:

odyssey2200 said:

ATG said:

, hence why every sane nation on the planet leaves monetary policy in the hands of an independent central bank.

Who owns those central banks?

Zeitgeist, anyone?

The Bush family have lost their banking interest since helping the Nazi war effort so valliantly, so would it be the The Rockefellers?

I know it is not me..

Putting the banks in charge of national finances is like putting a Paedophile in charge of the playgrounds

[WhoseGeneration]

HundredthIdiot said:

WhoseGeneration said:

I would have thought that, in essence, [a common currency] would mean a commonality of such as wages, prices, taxes, pensions and social costs, for stability across member nations to be effective.

Why?

"Stability".
Which, it would appear, is not currently the case.
So, workers in some EU states have to provide the "insurance" for workers in other EU states.
Of course, this might be the intent of the politicians involved.

[Bing o]

ATG said:

There is an international currency already ... it's called the US dollar. Zimbabwe used it, China's currency's value is pegged to it, etc, etc. Pretty obviously they aren't all members of a Unified World Government, unless wikileaks has still got a few surprises up its sleeve.

I'm pretty sure that some currencies (like SGD) are pegged to a basket of currencies, not just the USD...

[XJSJohn]

Deva Link said:

ATG said:

There is an international currency already ... it's called the US dollar.

Maggie Thatcher publically said that when the Euro was first mooted.

Is true though ... in Asia for example, buying you visa for Indonesia, Vietnam, Laos, Myanmar, Cambodia, Philippines, all take USD.

USD can be used for purchasing most anything throughout Asia, even in Singapore hotels and the like will accept USD for payment.

Africa is much the same also, and so many currencies are linked to USD.

[ATG]

WhoseGeneration said:

HundredthIdiot said:

WhoseGeneration said:

I would have thought that, in essence, [a common currency] would mean a commonality of such as wages, prices, taxes, pensions and social costs, for stability across member nations to be effective.

Why?

"Stability".
Which, it would appear, is not currently the case.
So, workers in some EU states have to provide the "insurance" for workers in other EU states.
Of course, this might be the intent of the politicians involved.

You haven't explained why stability requires any of those things to be closely in line.

We're talking about _monetary_ union ... the criteria for stability are about monetary compatibility, so you need to be concerned about private sector and public debt levels, money supply and how quickly those two are changing, and inflation and the economies' sensitivities to interest rates.

[ATG]

Bing o said:

ATG said:

There is an international currency already ... it's called the US dollar. Zimbabwe used it, China's currency's value is pegged to it, etc, etc. Pretty obviously they aren't all members of a Unified World Government, unless wikileaks has still got a few surprises up its sleeve.

I'm pretty sure that some currencies (like SGD) are pegged to a basket of currencies, not just the USD...

Yeah, some are. Main component usually USD with some Yen ... Euro if they want to be a bit anti-American.

[sjn2004]

Ozzie Osmond said:

Nonsense IMO.

At least, that's what Estonia think as they joined the Euro today. I believe there's a queue behind them too!

We should be paying careful attention in case our dinky little £ goes out of fashion....

Crap countries all queuing up so they can get "bailed out" as well.

[Bing o]

sjn2004 said:

Ozzie Osmond said:

Nonsense IMO.

At least, that's what Estonia think as they joined the Euro today. I believe there's a queue behind them too!

We should be paying careful attention in case our dinky little £ goes out of fashion....

Crap countries all queuing up so they can get "bailed out" as well.

Ozzie, please stop embarrasing yourself, there's a good chap.