Posted on 03/04/2009 9:05:09 AM PST by SeekAndFind
During the current crisis we have several times heard invoked the wisdom of Milton Friedman about the unfeasibility of the euro as a currency surviving a recession. In an interview not long before his death three years ago, Friedman said: "The euro is going to be a big source of problems, not a source of help. The euro has no precedent. To the best of my knowledge, there has never been a monetary union, putting out a fiat currency, composed of independent states. There have been unions based on gold or silver, but not on fiat money – money tempted to inflate – put out by politically independent entities."
It is what lies below the surface of this observation that is putting not just the euro, but the entire confection of the European Union, under such intense pressure. Any recession would bring into play tensions between idealism and nationalism: the desire by those who pilot the European project to maintain the confection for as long as possible and as intact as possible, that it might come out on the other side of this economic horror bloodied but unbowed; and the inevitable identification of hundreds of millions who stand outside the fantasy world of the political class with their own nation state, their own nationals and their own national interest. Without a degree of coercion beyond what even this undemocratic, Sovietised swindle has attempted in the recent past, the national interest will in the end prevail.
There have been auguries of this for some months, while we have waited for the breakdown of the condition of denial in which Europe's political class finds itself. During the current crisis we have several times heard invoked the wisdom of Milton Friedman about the unfeasibility of the euro as a currency surviving a recession.
(Excerpt) Read more at telegraph.co.uk ...
Ping.
I don’t think it will die a quick death, but it is heading in that direction. There are a lot of “evil forces” behind “one currency” and they will not [simply] let it go...
Brown’s speech to Congress was pathetic...what a groveling, sniveling, pandering weasel...”there is no old europe or new europe...there is just your friend...” KMA...if you need your azzes saved, you know where to come...I say the door should be closed on these idiots...they have more jihadists than Saudi Arabia...
Brown wants YOUR wallet to save his sorry socialist ass!!
You know Britain doesn’t use the Euro?
There has been a small but unwavering band of UK CONSERVATIVES who have been consistently arguing against further monetary and political union with the EU.
Although the UK economy and banking is in itself a mess, at least they are now not tied to the EU.
Congratulations to those stalwarts have have at least protected this part of UK sovereignty.
They are not in the Euro Zone but their economy is closely tied to Europe.
This is great news. The Euro will collapse, and the toxic political entity known as the “European Union” will disappear, thank God. Europe itself will be much better off when the Euro is gone.
“You know Britain doesn’t use the Euro?”
Why do you think I did?
Better because the unaccountable political entity that currently rules it despotically from Brussels will be greatly weakened without a common currency? Does that help?
In the sense that the unelected, unaccountable, overrreaching, arrogant and incompetent petty tyrants known as Eurocrats in Brussles and Strasbourg will be disempowered. Surely a good thing for every European (well, except the Eurocrats).
GMTA!
Because the article was about the Euro?
I mean, if you thought this article was about, say the 1812 war then your weird and bitter comment about “azzes” might be chalked down to a natural desire for revenge against the people who burnt down your White House and forced you to disgorge from Canada.
But in fact the article was about the imminent demise of the Euro. You either seem to think that the UK will be terribly badly effected by the events depicted in the article - which it won’t as (hey!) Britain doesn’t use the Euro - or you’re posting out of some inner torment which kicks in every time you see the word “Britain”.
Help us out. Which is it?
SAJ, I am totally honored to be on the same page as you, Sir.
FReegards.
Friedman zeroed in on the foundation of sand for the whole affair (the EU and the Euro). No real foundation for either. The EU is a bureaucracy with the colour government. The Eurozone has always struck me as odd. All members continue their own financial policies but have a common currency. There are nations in the arrangement with a history of inflating their old national currencies and I was curious as to how long such policies would continue in a common currency framework.
“Help us out. Which is it?”
I didn’t post the article and I was not referring specifically to an economic bailout in MY post, but rather our historic penchant for coming to the rescue...
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