Idiot stupidity

The single currency has been a resounding success on many levels, but soaring inflation poses a serious threat to its survival

No. Most of Europe’s macroeconomic problems can be laid at the feet of the euro. That’s not a success. Further, it doesn’t have a problem with inflation in general. It has a problem with different inflation rates across the eurozone. That this is the problem is exactly why the euro isn’t a success on that macroeconomic level…..

9 thoughts on “Idiot stupidity”

  1. Macroeconomic problems be blowed: the Euro has always been a political project and that for enthusiasts is how its success should be measured. In all other respects it’s been a disaster and will be the prime reason for the EU’s decline and ultimate dissolution.

  2. There are very many criticisms one can aim at Gordon Brown, but we should always remember that he stopped Blair from taking us into the Euro.

  3. There are very many criticisms one can aim at Gordon Brown, but we should always remember that he stopped Blair from taking us into the Euro.

    That is true, but we should also always remember that he did it to help thwart bliar’s ambition to become president of europe, not because he was against eu integration.

  4. Bloke in North Dorset

    Macroeconomic problems be blowed: the Euro has always been a political project and that for enthusiasts is how its success should be measured. In all other respects it’s been a disaster and will be the prime reason for the EU’s decline and ultimate dissolution.

    And for proof you need look no further than the current President of the European Central Bank: Chirstine Lagarde.

    A more naked political appointment you will never see.

  5. AtC: I am prepared to concede Gordon Brown one third of the credit for keeping the UK out of the Euro. The other two thirds go to, respectively, Osama bin Laden and the Conservative Party’s grass roots.

    Of course, had the latter known that 9/11 would force Tony Blair to choose between spending his political capital standing shoulder to shoulder with America or taking Britain to the heart of Europe, then making Iain Duncan Smith leader might not have been necessary after the Parliamentary Party’s silly games had left him the only alternative to Kenneth Clarke.

  6. ‘ It has a problem with different inflation rates across the eurozone. ’

    Which is a good thing because that strengthens the argument for ever greater integration so there is a single economy and single inflation rate.

    There is no downside to failure in the EU, each one supports the advance towards a Federal Europe, with one central Government.

  7. Some would point to the 15% unemployment rate in Spain, together with inflation at 6.7%, as evidence that maybe the euro is not a cause of universal financial health. But it is not fashionable to deploy facts in support of a declaration of faith

  8. The Meissen Bison is right. The Euro exists to promote the political project of a single European state. The economic problems that it creates can only be resolved by greater degrees of economic integration or by abandoning the Euro entirely, so as long as the second option can be made politically impossible it applies a ratchet action to force the member states into ever-closer union. The worse it fails economically the better it succeeds politically, and it can only be understood as a political project.

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