Euro Faces Tough Adulescence

[50 shades of black + 254]

The euro celebrates its twentieth birthday saddled with flaws dating back to its conception. There were early successes in financial market terms as bond issuance and trading volumes took off, and its share in foreign exchange reserves grew. However, that gave way to a teenage crisis of existential proportions, which dented official reserve managers’ desire to hold the single currency. Temporarily covered up by the drug of cheap central bank money, the weaknesses retain their power to ruin the single currency’s adulthood.This dangerous fault line is budget policy. Countries who join the euro are supposed to have achieved enough economic convergence to cope without being able to devalue their currency or set their own monetary policy. They certainly aren’t supposed to need bailouts from their peers. That’s the reasoning for a fiscal deficit cap of 3 percent of GDP, which the European Commission is responsible for policing.Yet the reality has fallen short: 2018 may be the first time in a while that all euro members actually achieve the deficit cap. And even then, Italy is on a collision course with the European Commission, which views the budget plans of the euro zone economy’s third biggest economy as too profligate, especially after adjusting for economic swings. Realpolitik is the main hurdle to a strict application of the budget rules. Many countries are wary of being heavy-handed with peers. Playing hardball may also damage popular support for the single currency project. Italian backing for the euro has already fallen sharply since 1999 – in contrast to increased enthusiasm in Germany.
 

[Pavel + 384]

Not euro, or either dollar, just gold

[pinto + 293]

Probably there may be a few currencies disappearing in the next couple of years. Even the dollar may no longer by the world's reserve currency.

[rainman + 263]

1 minute ago, pinto said:

Probably there may be a few currencies disappearing in the next couple of years. Even the dollar may no longer by the world's reserve currency.

No doubt, some globalist solution will be reached. Who knows Crypto perhaps?

[pinto + 293]

1 minute ago, rainman said:

No doubt, some globalist solution will be reached. Who knows Crypto perhaps?

Maybe, but if it's a government run crypto it's quite scary. It will be a cashless society where they'll know where and when every single penny is spent. I don't know, but future is behind the hill

[damirUSBiH + 327]

20th birthday. The euro has been one of the biggest European success stories. But, I’m sure that time which’s coming will be much harder than last 20 years....

[ronwagn + 6,290]

6 hours ago, pinto said:

Maybe, but if it's a government run crypto it's quite scary. It will be a cashless society where they'll know where and when every single penny is spent. I don't know, but future is behind the hill

Unfortunately, they already have us by the numbers in our hand or in our mind when we use our credit card or go to the ATM. It is all very well put out in the Bible. Globalism is running rampant. My favorite social site Gab has been unable to find a credit card processor due to our judicial system not stepping up to protect them from elite censorship. Now gun sales are also being attacked in the same way. The left will keep pushing until violence ensues. 

[ronwagn + 6,290]

6 hours ago, rainman said:

No doubt, some globalist solution will be reached. Who knows Crypto perhaps?

Why not a "basket of commodities" maybe including silver which is far more abundant?