Troubled Euro is a good lesson for Asian common currency

[Astroboy]

As I predicted, things are happening in Greece. Greek people prepare the day when Greece get out of eurozone.

Greek banks see steady deposits outflow ...
Greek banks see steady deposits outflow - FT.com

 

[ClarkH]

This has been in anticipation for over a year though. Even this thread was started over two years ago! Things have been happening in Greece and all over the Eurozone for a while now, but nothing extremely significant yet. So, let's see if something significant actually happens, and when. I doubt it will be soon actually.

Common currencies are very bad in my opinion. At least, if we can an assumption about a world with no transactions costs and frictionless markets (money can flow easily between countries), I contend that the optimal currency area is one sovereign nation. Any time there are different countries, with varying levels of productivity, they should have different currency values.

 

[ClarkH]

Shall we re-evaluate the timing of Greece's exit from the Euro?

 

[Wardie1993]

Portugal Suffering Greek Debt Contagion Puts Pressure on EU's Bond Markets - Bloomberg

In short, both government and household of Portugal had enjoyed beautiful life until recently only by borrowing money. Banks of Germany, France, etc. had lend money to Portuguese, Greek, Spain, etc. and let them purchase their Made-in-Germany products and Made-in-France, etc. German/French companies enjoyed brisk sales without risks of exchange rate as they are all under common currencly -Euro & the beautiful EU flag. But all was just an illusion or bubble.....

EU said to Japan .... 1) Japan should not eat whale meat; 2) Japan should not eat tuna fish; 3) Japan should reduce more CO2 emmission; 4) Japan should reduce government debts; 5) EU will not consider FTA trade talks until Japan change its own domestic system/dietary life/culture to European ones.

Now I am remembering a Buddhist concept that the proud will surely be destroyed.

i know im posting late, and im sorry for doing so, but i have to say thats the EU for you! Telling you what to do! They like to do that, thats why many here cant stand the EU, its not like we hate other european countries, but we hate how the EU has the nerve to meddle in our politics, our politics are none of there concern!

We dont and wouldnt tell our Japanese allies and friends what to do.

Anyway on the topic of the Euro im glad we stayed out of it now!

 

[Eudaimonia]

The Greek is here! Lets talk about the latest victim of German-led Europe... Cyprus!

Cyprus is a very small country of ~800k people, after Turkey grabbed half of the island Cyprus was left in ruins and they had to make a economy based on two things: (A) Bank heaven for foreigners (B) Tourism.

At this point i must say that Cyprus lost a lot of money from the last "haircut" of Greece. The way that the cut was made (who lost what) was a decision of Europe.

Anyway, it makes no sense to change the rules of bank saving whenever it suits the interests of certain countries (Germany and co).
The German-led European rhetoric reminds me of the U.S. who convenintly remember that they're pro-democracy, anti-dictatorship etc whenever they want to start a new war or arrange a new coup d'etat etc because some country isn't playing by their rules. We're not IDlOTS, we're not blind... we see the European propaganda. We saw Germany bitching about the Russian oligarchs money in Cyprus, we saw Germany bitchin about the dirty money in Cyprus but would they say such things about the other bank havens of Europe? About their buddies who hold the money of their own "oligarchs"? Off course not, whatever suits their propaganda purposes is what they're saying - it doesn't matter if it makes any sense, the only thing that matters is that they've got the microphone and the whole world is listening to what they're saying.


They're not doing all of this because it's the best solution - they're doing it because it's the best for them - always without caring about the consequences that it has on the nation itself (Cyprus). The "solution" and "bail out" whatever propaganda name the a-holes that now rule Europe choose to say is simply objectively the destruction of the Cyprus economy.

Cyprus recently found gas deposits and Cyprus would surely pay Europe back in the long-run. Actually Cyprus was way more of a safe loan for them than other countries like my own (Greece) is. So, it's not about the safety of the money that they put in Cyprus.

Then why did they do that? Out of simple self-interest.

Because this way they mainly achieved 2 possitive for them things...

(A) They want capital to continue to flow from the south to the "safe" German led Europe (Germany, Holland, Finland etc). for example: To the german bonds which are selling with negative yields.
(B) They wanted a show of force to the rest of the p.i.i.g.s. (despicable propaganda term btw)

They completely destroyed Cyprus's economy, which had as a direct and immidiate result on the very fragile geopolitcs of the area too, in a extremely important time for Cyprus because of the newly found gas (and maybe oil) reserves. So, this so far has ended up with Turkey threatening a newly week Cyprus in various ways.

Europe has sadly evolved into a huge shark tank in which there are some poor smaller fish struggling to survive.

This is the new German-led Europe, everyone without blinders on can sadly see this fact very clearely now. Cyprus was a real eye-opener for A LOT of people. From countries like my own (Greece), and Spain, Italy, portugal etc you occasionaly hear voices of people yelling "Merkel is the new hitler" etc etc, at first (~2 years ago) i thought that this was a huge exageration but with each passing month it seems more like a reality.