Saturday, November 24, 2007

How Europe will defend itself in the currency war .. bad news for London

Will Europe impose exchange controls to head off disaster?

Excellent piece from Ambrose:
"Spanish, French, South Italian, and Irish house prices are already all falling."
"The measures are of course exchange controls. This is the nuclear option,..."
"...the effects of such a move on the City of London would be catastrophic ..."

Posted by voiceofreason @ 06:19 PM (683 views)
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5 thoughts on “How Europe will defend itself in the currency war .. bad news for London

  • I liked the article by Ambrose Evans-Pritchard.

    Does anyone think the Dollar, Pound and Euro will engage is a rapid race to the bottom, cutting interest rates all round?

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  • After all EU and euro was a criminally optimistic illusion pushed to the ignorant millions, like a herald to the New World. Its inherent contradiction is now unfolding in front of us. I suspect disbanding EU can hardly be ruled out in the foreseeable future, but that at a gallactic cost.

    It really should have stopped short of grotesque monetary union based on the concept of financial facism, without regard to the regional cultural diversity, just to benefit the mega banks and big businesses. Getting back to the stage of the good old EEC may be a good idea.

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  • I like this comment after the article: “Let’s laugh a little! Seven years ago we heard how the Euro would be a failure – today it’s so strong that it puts the dollar in the shade.

    It’s sheer arrogance to say that the Euro could endanger the pound, especially when the money of British taxpayers is being blithely used to prop up the private responsibilities of Northern Rock’s shareholders.”

    1. alan said…
    “Does anyone think the Dollar, Pound and Euro will engage is a rapid race to the bottom, cutting interest rates all round?”

    Let us hope so, because I have been selling a lot of dollars and GBP recently!!

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  • One well educated comments appearing after the article, which may well be the vox populi.
    The Euro a success?
    DavidG 23 Nov 2007 14:23

    I spend a lot of time on the Continent, especially in Spain and in Italy. I also travel frequently to and through France. I am a Europhile and speak Spanish and Italian.

    In all three countries, the original currency still appears on most bills together with the Euro total. This is because many citizens continue to think in Lire, in Pesetas and in Francs. Most of the people that I come across lament the passing of their traditional monetary units and long for their return.

    It is my opinion that, had the people been given the choice, the Euro, rightly, would never have come into existence. It has had no practical use at all!

    —–Our Ancestors knew best(there’s nothing new under the sun)
    Bob Watkins 23 Nov 2007 14:02

    I have always thought that the EU & its ‘euro’ were a poor idea.
    The fact that EU state economies have different farming cycles, ie, harvest times – some have two a year others only one a year cannot be overlooked and dismissed as it has been.The same goes for cultural & legal differences.If the market had been only a trading bloc amongst European members then this would have been good.It has gone way too far now, let us pray that the fallout won’t pauper the UK, because I doubt that the government will defend us very well.


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  • Ideally we would only have one world currency, gold. Those people who advocate a separate currency for each country in europe might as well press for a separate currency for London vs the rest of the UK. After all, it’s ridiculous to set the same interest rate for the scottish highlands as for central London. Equally it’s crazy to suggest that the same currency and the same interest rate should apply in both Hawaii and Alaska. As for the Euro, it’s not a bad thing per se – in fact it’s probably a good thing since it takes the interest rate-setting power out of the hands of national governments who can’t always be trusted to handle it sensibly. I’d be surprised to see it go – the national governments have staked too much on getting it to work!

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