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Reply With QuoteNo.even if i think that it will eventually hapend anyway.
Yes
No
With the troubles in the world economy, and the pound rapidly losing value against the euro, is it time for the UK to adopt the euro? What are the advantages of Britain adopting the euro, and what are the disadvantages? Have the advantages or disadvantages changed with the current financial crisis?
No.even if i think that it will eventually hapend anyway.
It'll cost a lot to do it which would not be advisable at the current time with the economic situation not looking rosy, besides the people here would not stand for such a move. So even if it made sense it would be political suicide to try and do it.
Nulli Secundus
People always talk of dying for their country, and never of making the other bastard die for his
Britain shouldn't adopt the euro, and it's never going to do so.
One of the problems with the euro is that you can't control your own interest rates. The European Central Bank in Germany does that. But all countries need different interest rates to suit their economy at the time, but in the Eurozone the interest rates at one particular time can only suit some countries but not others.
Whereas the British, with the pound and the Bank of England, have the advantage of being able to control their own interest rates.
Here are a few stories from Mary Ellen Synon's "Euroseptic" column in the Daily Mail:
The most clear benefits of an independent sterling
30th December 2008
Daily Mail
John Hurley, the dormouse who works as governor of Ireland's Central Bank, suddenly woke up today to insist that the benefits to Ireland of being in the euro are 'most clear.' He didn't exactly explain why, but it didn't matter.
Nothing he could say would now convince any Irish businessman of the 'clear' benefits of the single currency. Amidst the ruins of the Irish economy -- GDP is expected to shrink by five percent in 2009 --the association representing Ireland's small and medium enterprises has just released a statement saying that the euro's strength against the independent British currency is 'a disaster.'
The pound has dropped against the euro by 17 percent this month, and Irish exporters are dying: Britain, for all Ireland's posing as a 'European' country, remains Ireland's most important trading partner.
What the Irish need to do is devalue their currency; but because they have surrendered their their currency to the euro, they can't.
It is good they are hearing the truth about the disaster from their own businessmen, because the Irish are unlikely to listen to anyone in Britain. Still, they would do well to read the Times this morning. William Rees-Mogg writes that one of the lessons we ought to learn from the turmoils of 1931 is that governments should not defend at all costs an overvalued fixed exchange rate: 'Britain does not now have a fixed exchange rate, although some people still want to join the euro. If we were in the euro, we would probably be arguing about when to leave.'
As David Owen, the chief economist at the German bank Dresdner Kleinwort, said just before Christmas: 'A weaker sterling is just what you need in the current situation. Export margins are going through the roof, and this helps not just manufacturing but also service exports. Profits are holding up surprisingly well.'
All because sterling is an independent currency. Which is why you have to
wonder: why is Peter Mandelson working to end that independence, and why is Gordon Brown letting him do it?
************************
The curse of the euro
15th December 2008
Daily Mail
The Irish government has just announced it will raid its once-untouchable national pension fund for €10bn (£9bn) in order to inject capital into its near-bust banks. It had to come to this: Ireland's foolish, foolish decision to join the euro in 1999 meant that banks could borrow money all over Europe and were no longer restricted by the amount of deposits they could attract. Euro membership was a charter for greedy fools.
Add that to the European Central Bank interest rates that were kept low for the German economy, but were far too low for the over-heating Irish economy, and it was bound to be disaster for the banks -- and for the country. The irrationality of euro membership ensured that an asset bubble, as spectacular as the one now crippling Spain, followed. Ireland's euro-fueled property crash is now taking down the banks, pensions, savings and jobs with it.
As of last Friday, the four banks traded on the Irish stock exchange had a total market value of just €3.3bn (£3bn).
So now we know the price a country has to pay to join the euro: in Ireland's case, about 94 percent of the value of its bank shares.
And for those of you wondering how it is Britain destroyed its banking system even though it is not in the euro, the answer is simple. There are as many ways to destroy your banks as there are to take your life. As it happens, the Irish chose death by euro.
dailymail.co.uk
Last edited by Blackleaf; 31 Dec 08, at 20:35.
They have the right point, even if the articles are from the daily mail.
Nulli Secundus
People always talk of dying for their country, and never of making the other bastard die for his
Blackleaf very interesting information there I had no idea how the Euro really worked. I voted no based on quick research and the info I saw posted here. However I wonder how long any monetary system will remain independent. I have seen some reports that they are working towards the Amero over on this side of the pond.
Well as someone who's state has adopted it, I'm fine with the euro, it's been a good thing for Ireland.
Eased integration with the rest of the European economy has worked very well, we need strong links to the continent, and the euro helps us have one.
Ireland's problems come from an overheated property market which this government was stupid about, the international stuff is making it worse but we can't control that.
Controlling interest rates is a big issue here at the minute, with many economists cursing the euro, but Ireland's recovery lies through our own reform, de-bloating the property market and reduction of intervention, interest rates are a crude, unsustainable way to ease an economy.
I'm not even gonna comment on the Anglofascist rag you've called a paper.
Although it is not true that all conservatives are stupid people, it is true that most stupid people are conservative.
- John Stuart Mill.
Originally Posted by Ironduke
I think Britain should join. I originally had doubts about the Euro, but it has poven to be a strong currency and the Pound isn't. Time to join and be done with it once and for all.
The Daily Mail talks a load of rubbish most of the time. The article only mentions the drawbacks of the Euro but not the advantages. The biggest advantage is that it makes trade with the rest of the EU hugely easier and less costly for both seller and buyer.
Last edited by DRichards1968; 31 Dec 08, at 23:19.
It shouldn't cost a lot. There is a cost to every change, but there is no reason to think currency change would be particularly high. And as for 'people not standing for such a move', we all know that if the government decides to go ahead, there is f---- all that people can do about it.
Last edited by DRichards1968; 31 Dec 08, at 23:18.
In practice there is no reason why the Euro should not work. The main challenge is that you need to adapt your economy, but that isn't a major deal. All this talk about interest rates causing problems for some countries may be partly true, but interest rates are just one mechanism to control supply and demand in the economy. Demand can be dampened by higher taxation, and taxation is still a policy within the domain of each sovereign government.
"Add that to the European Central Bank interest rates that were kept low for the German economy, but were far too low for the over-heating Irish economy, and it was bound to be disaster for the banks -- and for the country. The irrationality of euro membership ensured that an asset bubble, as spectacular as the one now crippling Spain, followed. Ireland's euro-fueled property crash is now taking down the banks, pensions, savings and jobs with it."
This biased article completely ignores the fact that interest rates are not the only tool for economic management. Governments are free to increase or reduce taxation, and introduce wage and price controls.
The US is in a recession also, but Michigan is in a worst condition than the rest of the country, I guess with the logic in the above articles it is to bad that Michigan can not devalue their currency. (Actually some US communities are looking into creating and distributing their own currencies)
What the above articles leave out is the bad effects of devaluating once currency. Crooks is right, they need to concentrate on improving their economy, just like we need to here in the states. Interest rates, currency fluctuations, taxes and other things governments do can have some kind of a positive and/or negative effect on the economy. But the final effect is not always guaranteed. Ireland is stuck with the same currency as Germany, Italy, France, Greece, Spain, Luxembourg, ...
At the end of the day, many other factors come to play, in a country's economy. Have their business leaders made the right choices over the last few years. Did they builders build more homes than the market could support like here in the US. Did their banks finance a bunch of bad loans, and made a bunch of bad investments. Did their manufacturing industries make sub par products, with out diversifying their product lines, kinda like the US car manufactures have done, make too many SUVs and gas guzzlers, that break down more often than their Japanese counter parts. Did the consumers in the country go spend crazy, and spend them self's into bankruptcy. Did their voters made some bad choices, and elected corrupt or incompetent leaders like George W. Bush, Blagojevich, Palin, Kwame Kilpatrick, ... Did their political leaders made bad choices, and diverted to much attention away from the economy, to an ill advised war, did their leaders deregulate the bank industry too much, stand still while the economy was going down the tube and make stupid statements like "the economic fundamentals remain strong" while the economy was going down the tubes, ...
The whole world is in this mess, and like many past recessions this will pass, I just hope sooner than later.
One additional comment, I currently traveled in Europe and I wish they were all using the Euro, it makes it much easier to travel and spend your money.
Probably better to adopt the US dollar!
Either would be unacceptable to the majority of the population; watch the euro-skeptic vote in the 2009 elections.
A more serious analysis is provided in The Economist from time to time.
eclectic-cynic welcome to the WAB!
http://www.economist.com/world/brita...ry_id=12814762
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