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Britain donât join the Euro
ed for lengthAlthough it was the third ECB rate cut in just six months, the ECB had actually been far slower to respond than other central banks as they sought to stimulate the world's flagging economies. what a surprise! they are so ineffectual on the world political stage via the UN that why anyone should expect them to manage a united economic zone any better is beyond me. Besides, what is good for one economy is not necessarily good for all: so no wonder the beaurocrats are a) slow to respond and b) completely ineffectual when they do. All the while, the rising euro threatens to make Europe's export goods and services over-priced to global markets. But the big eurozone economies of Germany and France are in a double bind because the eurozone's economic and management union charter dictates government spending cuts at a time when spending is needed for economic stimulus. One would be tempted to laugh at them if the repercussions were not global and severe. The most humourous aspect was that some EU beaurocrats were actually proud that their once-pitiful currency had grown legs. Well it will be a bitter laugh. Pride is expensive. You can have an overvalued Euro if you like because for every 1% that the US$ falls, that makes US exports 1% cheaper than their European competitors. But this absolute failure of beaurocracy to make effective decisions to aid even the largest EU economies is one of the best arguments why Britain should not abandon the pound and completely hand over their decision-making ability to a bunch of Eurocrats - bendy plastic-wrapped cucumbers notwithstanding With some understatement, economists for Lehman Brothers recently declared: "We are concerned that the rapidly rising euro could consign the eurozone to an extended period of stagnation." The ECB rate cut and the seriously underlying problems in so many of the eurozone economies have been fortuitous for Britain's influential "eurosceptics" - those who see membership of the European Union as a necessary evil but are not prepared to sacrifice the pound and adopt the euro. Yes, Britain RUN, run away from the Euro. Don't walk. I wonder what The Borg make of all this. While their militant wing is scratching around for uranium to make a dirty bomb, their economic wing is watching with interest. I suspect they believe they may pull down the US economy with a well-timed action considering the US$ is teetering on the brink. Once it falls below 92 on the USDX (currently at 92.22) there is no telling where it will stop. That is a major resistance point from way back in 1999. It may have only fallen halfway against the Pound, Euro, Aus$, Can$ etc. There comes a point where the benefit to exports is outweighed by the destruction of faith in the dollar system and The Borg know it. Dr Mahatir is soon to speak of the introduction of the Islamic Gold Dinar: currency of The Borg Posted by: Anon1 2003-06-14 |
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