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View Diary: Bank Run in Cyprus, Will it Spread to Southern Europe? (322 comments)

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  •  Euro (5+ / 0-)

    the Problem with the Euro is not its existence itsthe democratic control behind it. And the taxation/socoalsystems.
    I personally live outside of germany (first in Ireland, now in czech republic which does not have the Euro)

    On a personal level I find it very convenient to pay with the same money in most of Europe without having to think about exchange rates and such.

    Before the Euro - and IIRC that were just the 12 original states - someone calculated that if you  travel around with 100 DM and visit every country without spending it - just exchange into the local currency - you had less then half of it left when your back home. And this is just fees.  Also in an so tightly woven economy if you need accounting in more then one currency - just imagine you live in california and need to pay with a different currency in New York and with another currency in Texas and in lots of states in between.  As a businesss you need to keep track of exchange rates and such if you want to do business outside of california.
    That is actually what the purpose of the Eure ideally should be . The problem is that the states still have the last word on everything - f.e ragrading taxation . Just imagin ethat thefederal government would like to raise the income tax and Alabama could say no - just because.
    The ECB is basically modelled after the Fed - as politically independent. But with the head of the ECB part of the political games thats not worth much .

    I'm a big fan of the european thought and i like the states to come together even more - with all the different cultures and different religions. But weneed democratic control and as long as that does not happen and the national government s take all the credit and shift all the blame to the european level you do not need to wonder why more and more people have negative thoughts about the EU.

    "How many years since you found yourself staring at an endless sky? " VNV Nation - Endless Skies

    by Kavalor on Sun Mar 17, 2013 at 02:24:45 PM PDT

    [ Parent ]

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