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Experts gather to discuss euro’s fate
Published: 25 September, 2010, 09:13
Edited: 27 September, 2010, 14:38
A group of economists and currency experts are gathering in Berlin this weekend to discuss the fate of the euro, with the view that the currency is bound to collapse eventually.
After indebted nations such as Greece, Portugal and Spain almost dragged the euro zone into the abyss last spring, top policy experts from France, Germany, Luxembourg, the European Commission and Europe's Central Bank established a secret task force, Wall Street Journal reports. Their aim is to devise a rescue plan for the 16-nation euro zone, which is bound to eventually fall apart, they believe.
However, the collapse of the euro looks less probable now than it did three months ago, as euro zone economies are faring significantly better than expected. Germany’s unemployment, for example, has gone down and in the quarter of this year it registered the best quarterly growth rate in the last 20 years.
Nigel Farage of the UK’s Independent Party says more unrest is yet to come because the problem that shook the euro zone has not gone.
“The situation in Portugal is possibly worse than that in Greece,” Farage said. “Don’t think that because we had a relatively quiet summer that these things have gone away. Plus, between now and Christmas the Greeks have to roll over a huge amount of their own government debt. This has not gone away. The basic fundamental problem that these countries are not well-suited to be in the same monetary union has not gone away.”
Dr. Wilhelm Hankel, one of the currency experts who filed a lawsuit in the German constitutional court against the Greek bail-out, said the bail-out violated the provisions of the Treaty on European Union.
“The treaty for the European community [states] that a bail-out is completely forbidden,” Hankel said. “A country, which can count on being bailed out will not follow financial and monetary discipline.”
Jurgen Elssaser, one of the conference organizers, says the delegates are aiming to produce an action plan by the end of the meeting.
“We will push for a referendum about the euro, or going back to the Deutschmark in Germany,” Elssaser said.
German business newsletter editor Dr. Eike Hamer has a very pro-referendum position on the euro.
“One reason is that people have to decide whether they like a currency or not. If they do not accept it, they should have an end to an otherwise never-ending story,” Hamer told RT.
However, author and market guru Michael Mross has his doubts regarding the referendum
“All those questions around the euro are being ignored. We don't have a real support from the media, from the masses. It's a real scandal in my opinion that you, from the Russian TV are here, while none of the Western media are covering this event here,” Mross told RT.
25.09.2010, 06:09
Soyuz capsule lands in KazakhstanThe Soyuz space capsule with three crew members on board has successfully landed in Kazakhstan, following two attempts to undock from the International Space Station. |
25.09.2010, 11:56
Space crew heads to launch pad for prepsTwo sets of crew – the main and the replacement – are heading to the Baikonur Cosmodrome, where a Soyuz spacecraft will take them to the International Space Station on October 8th. |
Taking into account that three new pan-European institutions (first of all the European Banking Authority) have been created, under the managemente of the President of the European Central Bank (E.C.B.) Trichet, and that includes even nations which are not still part of the Euro like the U.K. or Sweden...What we are going to see during the next decade is an expansion of the Eurozone comprising ALL member states of the European System of Central Banks (ESCB) Remember that the prefix for British Euro notes is "J" and the control number for British Euro notes is "20". So the question is not IF the UK will join the Eurozone, but WHEN. Next Eurozone enlargement will take place on Jan. 1st. 2011: Estonia.
Those who have bandied around the idea that the Euro will collapse have done so as a manner to take pressure off the reality of the collapse of the US Dollar. Since all currencies of the world, from the time of the Breton Woods accord, have a value related to the dollar, the dollar being used as the gold standard. This worked well during the time the dollar was solvent, but now not any more. The dollar is insolvent, insolvency beyond the capital of the world to put it back into solvency. This in itself has put various currencies in the world in a dangerous position. Unfortunately, world currencies and economics are indelibly entwined with world politics. The present politics show division of the world in many areas. The EU countries have had a pact with the US for many years economically and financially. The EU lands find it difficult to tell the US government that they must face their solvency, to do so would seem as an unfriendly act by the US. So far all attempts by US financial institutions to destroy the Euro have so far failed. The Euro is under stress but not insolvent, far from it. If all the EU countries in the Euro went back to their original currencies, it would not solve the world economic problem, it would exacerbate it. Therefore if countries decoupled their currencies from the dollar, which they may well have to do soon, and returned to a gold standard or based on their economic output, financial dealings with each other may well return to more stable conditions internationally. The US would have to put its house in order, just as the Euro zone is putting their house in order right now, which is easier for the EU as their currency, the Euro, is solvent, whereas the US dollar is not. That is the real problem.
What one thing the planet will never lack,is our comediens ,which call themselves experts.Hello where were all our experts which could not foresee the global economic crash.Best advice ,when we hear from our experts ,,tune into some cartoons,like tom and jerry,you will find them more intelligent,and condense all they volumes of advice and convert them into toilet paper,much better use.