Re: Re: Should the UK join the Eurozone?


@logan wrote:

I have no doubt whatever the Euro will survive but it shouldn’t. It will survive because when Germany is faced with a choice of it’s total demise or printing money they will choose the latter. They will do that because for Germany the prerogative of an integrated political Europe must continue, whatever the cost in economic terms.

I’m no longer convinced that Germany wants the Euro to continue with the insolvent members. I read in Speigel a discussion of the cost to Germany to be 250billion in the first year, rapidly decreasing to nil in the following three years.
Alongside was an article saying Germany’s exports had hit 1Trillion.

The general feeling among Germans was the collapse of the Euro won’t be too bad and better than a devaluation/inflation.

I’m convinced they and a few other countries will leave the EU/Euro and rejoin the EU with a new currency based on fiscal union and strong rules. The bond system will be part of it.

The failure of the German Bond issue was a sign of the fact than the PIIGS will sink Germany too if it tries to bail them out. Germany is just as self interested as the UK.