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Germany has been working its butt off — especially when it took in East Germany after the fall. Greece is like that drunk cousin who keeps asking for money and saying “really, I will get off the sauce today.” And Greece is the USA in 5-10 years if the democrats continue to hold sway. In the meantime, say “auf widersehen” to the Euro, the 2nd stupidest idea mankind ever came up with (Communism being #1)

It was a 2-way street. When Greece adopted the euro, it was at a rate that meant a revaluation of the drachma against the mark. This meant Greece became more uncompetitive than it already was, trade-wise. And for over a decade, Greece has been unable to devalue, even as Germany racked up massive trade surpluses vs the PIIGS. It's as if we got into a currency union with China, which would prevent us from getting the Chinese to revalue their currency. The result would be even bigger trade deficits for us vis-a-vis the Chinese.

The problem with a common currency for the EU is that it really only works if EU members have a common language, and discrimination on the basis of national origin is outlawed EU-wide. In reality, Greeks cannot get jobs in Germany. They are stuck in Greece. During the Great Depression, Okies could and did go to California, which was in much better economic shape. The lack of economic safety valves due to language differences is why the euro is ultimately doomed.

>>The problem with a common currency for the EU is that it really only works if EU members have a common language, and discrimination on the basis of national origin is outlawed EU-wide. In reality, Greeks cannot get jobs in Germany. They are stuck in Greece. During the Great Depression, Okies could and did go to California, which was in much better economic shape. The lack of economic safety valves due to language differences is why the euro is ultimately doomed.<<

That is an extremely insightful analysis.

Thanks!

This meant Greece became more uncompetitive than it already was, trade-wise.

Similarly, using the common currency made Germany and France become more competitive than they would have been with their own currencies.

However bad the euro was for Greece and others was balanced by it being that much better for Germany and France.

the EU is that it really only works if EU members have a common language...In reality, Greeks cannot get jobs in Germany.

Nice theory, but wrong.

Turks have have flooded into Germany, and because they are willing to work, they get jobs. A surprising number of Russians, as well. Poles have flocked to the UK.

And finally, Europeans with a modicum of education do have a common Language. English.