Is The European Union and Eurozone Honestly Economically Sustainable?
Last year, I was discussing with an acquaintance the challenges with the EU and the economy there.
My acquaintance is from the UK so he had a bit to say about it all and he is "in the know" if you will.
He explained to me that the Eurozone had indeed had a decent run, but there were far too many differences between the different economies and their methodologies.
To which I do concur, still, let's take this conversation to a higher level because not a lot has changed from a year ago, and here we go into 2013 - things still look dicey.
My acquaintance noted first off that; "One of the reasons for the EU being created was to be a financial equal to the US (give all us small countries some buying power against the dollar as a group).
" Right, but perhaps it is a bad reason to do something if half the reason is for revenge what was that line the Nixon administration used; "It's our dollar, but it's your problem, deal with it.
" But really Europe couldn't get over the war mentality so that second WWII took down everyone there.
My acquaintance also noted that "it worked" or at least it did at first, but I challenge that notion as well, let me explain.
Well, Milton Friedman and others predicted it would fail in a one to couple of decades max, and if something works temporarily and everyone denies it, yet the few who speak are cut down, run out of town, or character assassinated - and everyone says "well, if those problems ever surface we can deal with them later" and then duly sweeps everything under the carpet, then well, you get what you get, but I am not so sure it worked, or if the EU just purported it was working as they announced each year their GDP against the USA, always fudging reality, while the socialist nations continued to spend.
Now then, please do not misunderstand; I am not completely picking on the EU for their rosy economic outlook, forward looking statements, or questionable economic numbers, as they are just trying to run out the clock on this global slump, how long they might hold out is a completely different matter indeed, we don't know, but will find out I suppose.
And, do realize the BLS (Bureau of Labor Statistics) sure puts out some questionable numbers often enough, usually coinciding with political events, Federal Budget decisions, or FED announcements.
So, it would be wrong to point fingers, and if I do, surely people would point back at me as well, if they dare.
Okay so, what's the answer to the question; "Is the European Union and Eurozone honestly economically sustainable?" Well, I guess that depends on what you use as your definition of sustainable and what the Eurozone looks like at the time you ask the question? Will some nations leave the Eurozone to save themselves and the system too? Time will tell, but 2013 could be their year from hell.
Please consider all this and think on it.
My acquaintance is from the UK so he had a bit to say about it all and he is "in the know" if you will.
He explained to me that the Eurozone had indeed had a decent run, but there were far too many differences between the different economies and their methodologies.
To which I do concur, still, let's take this conversation to a higher level because not a lot has changed from a year ago, and here we go into 2013 - things still look dicey.
My acquaintance noted first off that; "One of the reasons for the EU being created was to be a financial equal to the US (give all us small countries some buying power against the dollar as a group).
" Right, but perhaps it is a bad reason to do something if half the reason is for revenge what was that line the Nixon administration used; "It's our dollar, but it's your problem, deal with it.
" But really Europe couldn't get over the war mentality so that second WWII took down everyone there.
My acquaintance also noted that "it worked" or at least it did at first, but I challenge that notion as well, let me explain.
Well, Milton Friedman and others predicted it would fail in a one to couple of decades max, and if something works temporarily and everyone denies it, yet the few who speak are cut down, run out of town, or character assassinated - and everyone says "well, if those problems ever surface we can deal with them later" and then duly sweeps everything under the carpet, then well, you get what you get, but I am not so sure it worked, or if the EU just purported it was working as they announced each year their GDP against the USA, always fudging reality, while the socialist nations continued to spend.
Now then, please do not misunderstand; I am not completely picking on the EU for their rosy economic outlook, forward looking statements, or questionable economic numbers, as they are just trying to run out the clock on this global slump, how long they might hold out is a completely different matter indeed, we don't know, but will find out I suppose.
And, do realize the BLS (Bureau of Labor Statistics) sure puts out some questionable numbers often enough, usually coinciding with political events, Federal Budget decisions, or FED announcements.
So, it would be wrong to point fingers, and if I do, surely people would point back at me as well, if they dare.
Okay so, what's the answer to the question; "Is the European Union and Eurozone honestly economically sustainable?" Well, I guess that depends on what you use as your definition of sustainable and what the Eurozone looks like at the time you ask the question? Will some nations leave the Eurozone to save themselves and the system too? Time will tell, but 2013 could be their year from hell.
Please consider all this and think on it.
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