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CBI vs Lord Lawson, the folly of the Euro.

The Euro, is an ideology but as an ideology it is nothing new. The concept of European integration being driven by the Euro was first discussed in the late 60s, detailed in the Werner report in 1970.

Nigel Lawson Discussing the European Union alternatives

Today the Euro has become the lynch pin to European integration, but, it may well be its undoing. Should this happen and the signs are all there, it would open the EU to the cries of negligence, there was no need to embark on the Euro journey until the economies, fiscal controls were aligned. Currently as it stands it has destroyed whole economies and with the hope of the young from across the Mediterranean countries. Hence, the race to form this ideological rich mans club may well have consequences the basis of which we are seeing today.

The Euro, is an ideology but as an ideology it is nothing new. The concept of European integration being driven by the Euro was first discussed in the late 60s, detailed in the Werner report in 1970.

Most of the world is not in the EU.

Italy has broken from the EU doctrine by embarking on a new currency to run in parallel with the Euro. To do this is dangerous for the world economy, if a med country breaks with the Euro their debt remains in Euros for sure any new currency would drop like a stone making their debt harder to service, then comes default. Such a default would make the debt crisis of 2008 look like a picnic, ironically it would be better if the richer country left the constraints of the Euro. Either way it’s a mess at least the later would keep the problem isolated to the EU.

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Nigel Lawson makes a lot of sense.

The Werner report was clear it had defined a three stages process in which to achieve European Monetary Union (EMU). It was always defined since 1970 that to achieve a single currency, policy would have to be better coordinated from a central level that means interest rates, budgets and the management of reserves. For a while it looked as though the foundation was building for a sensible integration. Two stages process defined, the Basil agreement of 1972, gave birth to the European Monetary system of 1979 details the ERM European Exchange rate mechanism enable controls to be evolved, Roger Bootle refers to this period as the point the snake was thrown in the tunnel. Neither approach really followed the Werner report and in practice neither paved the way for the introduction of the Euro. However, our intrepid leader John Major attempted to bring us in line with the Euro, we all know the outcome of that. George Soros through his weight in as an opportunity to destabilize the UK, as is his want, as he is attempting to do again, achieving the Bilderberg vision.

January 1999 came the Euro juggernaut wrecking havoc through whole economies, removing the ability to control distinct economies through homegrown fiscal policies. Hence, the youth unemployment across the Med. Initially Eleven countries climbed aboard seven later joined, with Lithuania jumping aboard in 2015, Eleven lucky countries remain outside of this destructive out of control truck Ploughing through cultures, economies, exposing fiscal inadequacies and with it credibility. Today the Euro is the currency of 340M people, making it the 2nd most important currency in the world, I would wager it is the one that is most feared as the cracks are showing its collapse would bring the whole EU project down lime a pack of cards.

There is no example of major states with a diverse economic issues sharing a common currency. For sure the Caribbean islands use a common currency, but they are hardly economic giants. Panama uses the US$ but, they have no say in policy, and as such at the behest of the US federal reserve for their well-being. The closest you can come to an example of a common currency across major economies is of course the gold standard, but even that is a stretch as the gold standard was not a currency, making for a flexible ability to control one’s economy. But be aware Keynes in 1931 advocated our break with the Gold standard, cries of apocalypse, plague of locusts would descend upon us. Keynes held his view, and we left, the reverse happened the UK economy took off ushering one of the fastest growths this country had seen, “Sound familiar.”

Of course introducing the Euro ideology or not it was a mechanism in which to neuter member states bringing them under monetary, fiscal control but more importantly a political union with centralized decisions taken by the unelected bureaucrats based in the EU. And so the erosion of sovereignty begins, given that the EU have difficulty signing off their accounts is this a route you would easily take.


When you come to a fork in the road, take it.

Yogi Berra, US baseball player and philosopher

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