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I agree that the Euro was a bad idea. Such disparate economies as Greece, Italy ... on the one side and Germoney, Netherlands ... should not share a common currency. For the one side the exchange rate is too high and for the other too low, same with interest rates.
About the other stuff you wrote though, I'm not so sure :-)
[+]Guerilla0 points2 points2 points
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[–]Guerilla0 points
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I'm not sure either, it's just the only logical assumption I can make. I'm not an economist and I knew it was a horrible idea from the very beginning so either the people governing us have the IQ of a gorilla or they had other plans. The logic is simple btw I can explain this to you in a few lines. Countries who have control over their currency can devalue it in moments of economic crisis by printing money. This process is great for the economy in two ways, a) you print money which you tunnel in the local economy boosting the overall economy of the country and b) since the currency is now weaker exports increase further boosting the economy. All this is impossible under Euro, countries don't have control of their own economy and Euro itself is a ridiculously inflexible currency that has been compared to gold by many economists. So what happens during a crisis to not so stable economies? Chaos. This is the main reason why this was a disastrous idea, there are smaller ones too though.
So how the fuck could they not predict this? A 15 year old can reach the same conclusions if I describe this to him.
If there was no downside to devaluing your currency, everybody would do it. But as I am not an economist either, I don't know what they are.
But I agree that it would be beneficial for Greece to devalue because of the crisis, but you can't because you share the currency with Germany. So the Drachma it is.
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[–] Rea11yN0tMe [S] 0 points 1 point 1 point (+1|-0) ago
I agree that the Euro was a bad idea. Such disparate economies as Greece, Italy ... on the one side and Germoney, Netherlands ... should not share a common currency. For the one side the exchange rate is too high and for the other too low, same with interest rates.
About the other stuff you wrote though, I'm not so sure :-)
[–] Guerilla 0 points 2 points 2 points (+2|-0) ago (edited ago)
I'm not sure either, it's just the only logical assumption I can make. I'm not an economist and I knew it was a horrible idea from the very beginning so either the people governing us have the IQ of a gorilla or they had other plans. The logic is simple btw I can explain this to you in a few lines. Countries who have control over their currency can devalue it in moments of economic crisis by printing money. This process is great for the economy in two ways, a) you print money which you tunnel in the local economy boosting the overall economy of the country and b) since the currency is now weaker exports increase further boosting the economy. All this is impossible under Euro, countries don't have control of their own economy and Euro itself is a ridiculously inflexible currency that has been compared to gold by many economists. So what happens during a crisis to not so stable economies? Chaos. This is the main reason why this was a disastrous idea, there are smaller ones too though.
So how the fuck could they not predict this? A 15 year old can reach the same conclusions if I describe this to him.
[–] Rea11yN0tMe [S] ago
If there was no downside to devaluing your currency, everybody would do it. But as I am not an economist either, I don't know what they are.
But I agree that it would be beneficial for Greece to devalue because of the crisis, but you can't because you share the currency with Germany. So the Drachma it is.