Today, I shall complain about the Eurozone. Curses! you cry. She's a bloody Euro sceptic!
Well yes, I am. This is probably because I know bugger all about politics. But I don't think the Euro was ever a good idea.
You cannot run Sweden the same way you run Spain. Greece has a different economy to Italy (although their tax collectors probably play online poker with each other) and Germany has a thriving economy, while Ireland's was recently flailing.
This is the problem.
They are different countries, that cannot have a similar currency. They do not have the same GDPs, and so what a Euro is worth in Finland might not be what it is worth in the Netherlands. While a strong GDP in the US will be reflected in their exchange rate, any change in Eurozone is softened by the other economies.
The single currency means that they're all tied, and so as we've been hearing, Greece is in turmoil, and the value of the Euro is going down, even if only slightly. And when Italy reveals to be well and truly gone, it'll go down a bit more. And then Spain, and then when France can't take the debt it's going to go under. Bamn, and even though Britain's got the pound, it'll probably not take all the Euro countries going and we'll go too.
Although this is probably an exaggeration.
But it could happen. Either way the point is the same. When Greece goes down, without the Euro the other countries would just get a little splash in their metaphorical boats, but with the Euro they're all sinking together.
Well yes, I am. This is probably because I know bugger all about politics. But I don't think the Euro was ever a good idea.
You cannot run Sweden the same way you run Spain. Greece has a different economy to Italy (although their tax collectors probably play online poker with each other) and Germany has a thriving economy, while Ireland's was recently flailing.
This is the problem.
They are different countries, that cannot have a similar currency. They do not have the same GDPs, and so what a Euro is worth in Finland might not be what it is worth in the Netherlands. While a strong GDP in the US will be reflected in their exchange rate, any change in Eurozone is softened by the other economies.
The single currency means that they're all tied, and so as we've been hearing, Greece is in turmoil, and the value of the Euro is going down, even if only slightly. And when Italy reveals to be well and truly gone, it'll go down a bit more. And then Spain, and then when France can't take the debt it's going to go under. Bamn, and even though Britain's got the pound, it'll probably not take all the Euro countries going and we'll go too.
Although this is probably an exaggeration.
But it could happen. Either way the point is the same. When Greece goes down, without the Euro the other countries would just get a little splash in their metaphorical boats, but with the Euro they're all sinking together.
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