Re: Re: So… Are we all agreed that the Euro is here to stay?

#106636

Chopera
Participant

@flosmichael wrote:

We all know that the best solution would be for the Euro to split…

The questions are:

– if they split, how high is the new DM is going to go? How low is the new low Euro is going to go?

Well that would depend on the circumstances of the split, the markets, and a whole host of other unknowns. If I knew the answer to those questions I’d be very rich indeed.

@flosmichael wrote:

– will the competitivity deficit between South and NOrth be restored?

I think the assumption is that through devaluation the south would become more competitive since that is the whole point in advocating a split in the first place

@flosmichael wrote:

– will EU survive? Will everybody put the blame on Germany because they did not want to print? Who else will be blamed?

This is a political question rather than an economic one.

@flosmichael wrote:

– as situation in Greece, Spain, Italy will deteriorate, will there be mass uprisings by millions of unemployed?

Again this is not really an economic question. I wouldn’t expect an economist like Eward Hugh to deal with this type of question.

@flosmichael wrote:

– where will the jobs come for the millions of unemployed? Will industries move back from China to Europe? If yes, what will happen to the tens of millions of Chinese who will lose their jobs?

I personally think this question relates more to general imbalances between the west and China. The west has taken on too much debt (while China has bought too much debt). China needs to stimulate internal markets so it doesn’t just rely on exports (which forces the west to rely on its imports)

@flosmichael wrote:

– will nationalism become stronger in Europe? If yes, what directions is it going to take Europe to?

Again this is not really an economic question. I wouldn’t expect an economist like Eward Hugh to deal with this type of question.

@flosmichael wrote:

This kinds of questions I would like answers for from people in the know. But they keep on telling us things that we already know.