Is this the end of the Euro?

I think Jimbo and Bob have the measure of where things are. To get rid of the Euro would cause financial ruin for many members - including Germany, because Germany's new currency would rise and their exports become uncompetitive. Most of Europe's exports are to other European countries, and the Euro facilitates this. It is possible that some countries will be expelled from the Euro (Greece?), but no country WANTS to leave. The benefits are to great.

There will need to be some painful restructuring, such as common financial policies (United states of europe here we come?) and the acceptance that the rich regions will subsidise the poor - but downright cooking the books has to stop. As pointed out by lepidoptra i think, if UK had joined the Euro our pensions would buy a damn sight more in Thailand than they do now. Someone complained that Sweden had done badly since joining the EU, but it's currency is still independent, so it cannot blame EU financial management. Denmark are also outside the Euro, but they are doing OK. it is just that some countries economies are the winners as world markets change, and others losers. Luck of the draw.

what we see currently with rising interest rates is the fear of LACK OF STABILITY. Who in their right minds would invest in dollars and yen if income was important - they do not provide a return - only safety (and that is debatable).

Sorry, $600 T was the 12/2010 number. The 06/2011 number is $707 T.

http://www.bis.org/statistics/derstats.htm

But what's $100 T or so more going to change anyway, right? Like another bullet in the head of a days old and stinking corpse.

As the issue is discussed, please refrain from talking about affects as if Europe or any of its member countries were an isolated island. The affects of any country going under would have disastrous and far-reaching systemic consequences.

KHONDAHM wrote:


As the issue is discussed, please refrain from talking about affects as if Europe or any of its member countries were an isolated island. The affects of any country going under would have disastrous and far-reaching systemic consequences.

Perhaps you would like to read my original post once again . I specifically asked " What would be the effects on both the pound and the dollar. Nothing isolationist about that .A general concern for the worldwide repercussions .