Euro Investment Opportunities
Economic archaeologist Michael Wilson unearths evidence of a primitive
currency found off the coast of Great China - the euro
Archaeologists examining the submerged flatlands of what used to
be known as western Europe have uncovered fascinating new documentary
evidence of an early attempt at a multi-country currency that seems
to have enjoyed a brief popularity around the start of the 21st
century.
Euro Investment Opportunities & The Once-Mighty US Dollar
Although it is still too early to be certain of all the facts,
the euro (as it was called) appears to have staged an ill-fated
attempt to challenge the power of the once-mighty US dollar as it
approached the peak of what we now know as the ‘Bush Bubble’.
The fact that the euro fell so quickly to raiders from abroad,
and that it disappeared so soon afterwards, has shed new light on
the mysterious crash that was to extinguish all economic life on
both sides of the then Atlantic Ocean - thus leaving the way open
for the Chinese resurgence which, as we know, has dominated the
planet for the last 800 years.
Scientists still differ in their opinions about what this doomed
European attempt at monetary union might have achieved if it had
succeeded. While most insist that the euro experiment was nothing
more than an evolutionary blind alley, there are others who believe
that its failure represented the greatest loss to human civilisation
since the sinking of Atlantis some 8,000 years earlier. Thanks to
the new discoveries, however, we can at last firmly pinpoint the
beginning of the trouble to 2001, the year when the NeoSoros invaders
first mounted their attack on the upstart currency.
Euro Investment Opportunities - Western Europe
Around this time, we already know that western Europe was entering
a period of political and economic estrangement from the United
States, its friend and military protector for much of the 20th century.
The problem was not merely that the Bush Dynasty was steadily withdrawing
its US interests away from Europe and into the twin-hemisphere trade
bloc that would become known as Greater America. It was also that
Europe, with its 400 million inhabitants, had spent the last two
decades growing in a fundamentally sound way that contrasted with
America’s speculative, concept-driven economy.
Yet Europe’s high levels of trade self-sufficiency clashed
stridently with the Bush Dynasty’s dogged insistence that
all significant world trade developments must still involve the
US as a key player in some way or other.
So Europe decided that the moment had arrived to set up a credible
joint alternative to a US economy which it saw as being puffed up
with empty rhetoric - and whose currency, the dollar, was certain
to collapse if the underlying confidence in its stability should
ever decline. What Europe needed first, though, was a single domestic
currency, the euro, which would free it forever from the uncertainty
of fluctuating dollar exchange rates, both within itself and in
its trade with outside countries. The potential benefits for Europeans
would have been enormous.
Euro Investment Opportunities - 15 Core Countries
The problem was that western Europe at this time was not a single
country with a single political structure but a loose federation of
15 core countries, plus another dozen or so associate members. Its
various tribes spoke 20 or more different languages, and its disagreements
over political development were already causing major problems.
Its many governments had many different ideas about how their economies
should be run - some favoured fast government borrowing to fund
fast subsidised growth, while others insisted on austere and fully
cost-accounted policies that would never allow overspending - and
it was difficult to instil any general confidence in the future
direction of fiscal measures without drastic measures from the centre.
Fiscal sovereignty
So drastic measures were taken. The price that the 12 early members
of the so-called Economic and Monetary Union group (EMU) paid for
their admission to the euro club was that they placed a large part
of their fiscal sovereignty in the hands of a new European Central
Bank. The ECB was allowed, for instance, to dictate all bank lending-rate
policies across the whole group; more importantly, however, it also
forced them to promise that they would not overspend on their various
national budgets, so as to minimise the amount they needed to borrow
in the bond markets.
Euro Investment Opportunities & This No-Overspending Pledge
Why was this no-overspending pledge important? Because the value of
any currency always depends to some extent on the amount of government
debts that are outstanding. The more debts, the bigger the potential
for future price inflation and the less the markets like it. So,
if the euro group was going to share a single currency, it would
be crucial that no one member state should sabotage the collective
effort through reckless coverspending.
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