Euro sinks further after ‘break up’ talk

Financial Times ^ | June 1, 2005 | Steve Johnson

[Nyboe]

too freaking funny, maybe I should hold on to a few euros.... who knows in a few years they may be collector pieces like confederate dollars.

[in hoc signo vinces]

Seems like something else is being flushed down the toilet these days.

[ARCADIA]

maybe I should hold on to a few euros.... who knows in a few years they may be collector pieces like confederate dollars.

Let's hope not. The collapse of the Euro would be a huge global disaster.

[gogogodzilla]

The line, "Nevertheless Mr Norfield added that if a break-up was to occur, it would be a 'disaster' for the euro." is a classic.

Who would have ever guessed that if the Euro were to break-up, that it would be disastrous for the... Euro?

Golly, that's some mighty fine thinking on that one...

[Antonello]

The line, "Nevertheless Mr Norfield added that if a break-up was to occur, it would be a 'disaster' for the euro." is a classic.

I believe Mr. Norfield was referring to a breakup of the European Monetary Union, not the euro itself.

[snowsislander]

but for those central banks thinking in decades and readily raising their ratio of euro reserve assets, these are extremely relevant questions

They are indeed. I imagine the lights are burning way into the night in many central banks around the globe just to see what the scenarios look like.

There are probably other folks trying a few changes to their models also.

[Antonello]

The collapse of the Euro would be a huge global disaster.

Agreed. However, it would be survivable as long as a conversion back to the various currencies it supplanted was allowed. Assuming it hadn't been overvalued to give the receiving countries a financial 'incentive' to trade in their old money in the first place, that is.

Oh wait - I guess it would be a problem.

[gogogodzilla]

The European Monetary Union is source of the Euro.

It's like saying that if the Federal Reserve broke-up and ceased to issue dollars, that it would be a disaster for the dollar.

Or that if the kitchen stove broke, that it would be a disaster for the pot roast.

Which takes just how much brain power to figure out?

[in hoc signo vinces]

It's why China isnt selling their dollars to buy Euros...they know the currency (Euro) is monopoly money.

[Antonello]

The European Monetary Union is source of the Euro.

It's like saying that if the Federal Reserve broke-up and ceased to issue dollars, that it would be a disaster for the dollar.

Or that if the kitchen stove broke, that it would be a disaster for the pot roast.

Which takes just how much brain power to figure out?

I'll never argue that his statement wasn't a huge exposition of the obvious. But it wasn't the nonsense statement of 'the breakup of the Euro would be disastrous to the Euro' that you were making it out to be.

[Rodney King]

Let's hope not. The collapse of the Euro would be a huge global disaster.

Yeah, but just watching the expressions on their pompous faces would be worth it.

[ARCADIA]

Yeah, but just watching the expressions on their pompous faces would be worth it.

But the collapse of the dollar which may very well follow in lockstep would kinda kill the joy. The economic depression during the 30s started in Europe, and spread quickly, and the world is much more closely intergrated today then it was then. For one thing the US real estate bubble would burst as European held assets in the US go on the block in a firesale.

[Rodney King]

But the collapse of the dollar which may very well follow in lockstep would kinda kill the joy. The economic depression during the 30s started in Europe, and spread quickly, and the world is much more closely intergrated today then it was then. For one thing the US real estate bubble would burst as European held assets in the US go on the block in a firesale.

No biggie if you are prepared. Save up your money in a mixture of cash, treasury bonds, gold, and real estate. Then, when the depression hits, you can buy up down-town real estate for pennies on the dollar. You can hire maids and butlers for nothing, and every hot chick in town will be hitting on you. All you have to do it be prepared.

[Happy2BMe]

So what are they gonna do to the "defectors?"

Try them before the World Court? Turn them over to Kofi Anan? What?

(Mussolini and Hitler would be devastated over this outraged!)

=========================

The German Bundestag is also said to have commissioned a report on the legal repercussions of a country wishing to leave the EMU.

Germany’s finance ministry labelled the talk “absurd”, while Mr Eichel and Mr Weber issued a statement saying the euro was a “unique success story”. But the damage had been done.

[Rodney King]

So what are they gonna do to the "defectors?"

What I want to do is dump the Mexicans, and have a free trade agreement with Canada, Ireland, Iceland, the UK, and the New Europe nations i.e. Poland, Czechs, etc.

[DM1]

"But the collapse of the dollar which may very well follow in lockstep would kinda kill the joy. The economic depression during the 30s started in Europe, and spread quickly, and the world is much more closely intergrated today then it was then. For one thing the US real estate bubble would burst as European held assets in the US go on the block in a firesale."
Not really the world has evolved since the great depression and economies have evolved with it. The US Dollar would probably be strengthened since people would sell Euros and buy up the safer currency. To be sure there would be repercussions but survivable.

[Happy2BMe]

One of the main concepts of the EU was to form an economic, social, and military union based on the proximity of each of those nations to each other.

The leaders of Mexico, the United States, and Canada all have said they want the same union for North America.

What to do.

[Rodney King]

One of the main concepts of the EU was to form an economic, social, and military union based on the proximity of each of those nations to each other. The leaders of Mexico, the United States, and Canada all have said they want the same union for North America. What to do.

Tell them that "It's a small world after all" and that they can piss off, because location doesn't really matter all that much anymore. And by the way, we will take Australia and New Zealand as well.

[ARCADIA]

What to do.

We can take a referendum in the US tomorrow and end all the speculation.