is the euro going to collapse

Aberdeenangarse

newDude wrote: »

They are required to have a plan B by the FSA.

It's called sh it or bust.

ILW

I can see a few of teh weaker economies dropping out of the Euro over the next few years, when they will be forced to live within their means. The remaining countries will get stronger and get a little more outward looking as far a trade goes. The secret is to arrange for the countries that leave to do so in a contolled manner.

Get-real-buy-real

purch wrote: »

:rotfl:

Just by repeatedly typing this nonsense will never make it true.

You can't even spell Bretton Woods, let alone understand what it was, and how it worked.

Perhaps you could explain all of the different monetary systems you allege we have had in the recent past, how they operated and how they differed from each other.

Here we go again purch. You could try BS baffles brains approach or you could try being mature and keep the insults and playgroud stuff out of it.


After WW2 the world agreed to back all their currencies by the US dollar because they thought the US dollar was backed by gold bullion. This started a new monetary system called the Bretton Woods system.

Nixon stated in 1971 that from now on the US dollar was not backed by gold any more. Thus going back on the agreement. From now on the US dollar was fiat (unbacked) and since every currency was backed by gold through the dollar now every currency has been fiat since 1971. Meaning they can create more units of currency than gold and silver exist.

I know its a little oversimplified but basically this is the situation.


Seriously without BS baffling brains, can you point out in the best way where you disagree with this?

MacMickster

Plan B

Split the countries currently in the Euro into two

The stronger economies will remain within the traditional Euro (now to be called the DeutschEuro) with their economies run along traditional German lines.

The countries within the Euro weaker economies will join a new currency - the EuroMark. They will be supported by the DeutschEuro countries who will impose austerity measures as the price of that support until, many years down the line, their economies are back on track and also run along traditional German lines.

At this point the DeutschEuro and EuroMark countries will again combine to have a single currency - the Deutschmark.

ruggedtoast

No. The great Federal EU Superstate is pretty much inevitable now however, and there will not be one democratic vote in any country affected.

purch

I know its a little oversimplified

We have been over this ad-infinitum.

There have been many attempted "monetary systems" during the 20th century, since the end of the Gold Standard in 1914.

After the Gold Standard ended the world's monetary system was a complete caos of fluctuating exchange rates and competitive devaluations. There were exchange controls, tariffs and quotas Currencies inflated and depreciated in relation to gold and the dollar.

What about the Gold Exchange Standard from 1926 to 1931 ?

After that collapsed, we went back to freely floating currencies up until WW2.

Then Bretton Woods, which began to collapse in 1968, and collapsed completly in August 1971.

From then to the end of 1971 we had fluctuating currencies again.

Then the Smithsonian Agreement which fixed exchange rates, and revalued Gold at $38 oz instead of $35oz.

That collapsed in 1973, and we have had freely floating currencies ever since.

Bretton Woods lasted 27 years at best, and the period from the end of the Gold Standard to the Bretton Woods agreement was 30 years.

The every 30-40 years nonsense is just hyperbole, and will soon need to be extended to 40- 50 years, as we move into 2012.

The Gold Standard ended in 1914. Ever since then we have had 7 or 8 failed attempts to control the monetary system.

As Keynes said after the Bretton Woods conference.

"What we have agreed to, is the exact opposite of a Gold Standard"

It's not the description of the BW agreement that is necessarily wrong, (even though I don't think you really understand how it worked) it's the every 30 to 40 years nonsense, and the implication that the monetary system will collapse soon, because it always has every 30 years, which it hasn't.

Utter nonsense.

The monetary system might well collapse, but it won't be just because of the date.

Dan:_4

ILW wrote: »

Which is a little ungrateful as the Germans are paying for the Greeks pensions, public sector etc. whilst in many cases having lower living standards regarding working hours, retirement age, social security et al.

The Germans owe it to the Greeks for what they did to them during WWII - It's payback time.

drc

MacMickster wrote: »

The stronger economies will remain within the traditional Euro (now to be called the DeutschEuro) with their economies run along traditional German lines.

The non-Germans are going to love that.

Mr_Mumble

pinkteapot wrote: »

What would happen to all the euro denominated investment funds?

The denomination shouldn't really matter, at least not for investment funds that invest in shares/equity. If you own one millionth of Tesco you own 1 millionth of Tesco. Whether the fund denominates this in Euros, Pounds, iPads or cola bottles is a peripheral issue.

pinkteapot

Oui, or equally like non, says non-committal French economist:

http://www.dailymail.co.uk/news/article-2066196/Eurozone-markets-fall-AGAIN-Italys-borrowing-rates-hit-record-high.html