(adsbygoogle = window.adsbygoogle || []).push({}); Hey Guys, I figured I would post this up here since I am not going to be contributing to any modding discussion now days.

What do you guys think of the European Experiment, has it gone horrible wrong?
Also in the collapse of economies such as greece and spain, what is to blame? Is it the union project as a whole, or just the Euro currency?

I personally subscribe to the views of Nigel Farage, who I think is one of the greatest politicians in the history of Europe.

I also believe that the one major problem with the Euro currency, is the fact that countries take out debt in a currency which they cannot control. What I mean by this is that when a country, lets say greece, takes out 1 billion euros in debt, and later when its time to pay back, they don't have the money. Generally, countries which cannot pay back their debt will simply print more currency and devalue their own currency in order to pay back their debt. This is not a great thing for the country, but it does offer a way out when there are no other options. In the case of Greece, they cannot print more Euros, and this means that there is ABSOLUTELY NO WAY TO PAY BACK THE DEBT. One might say that this impossibility to pay back debt is a better solution to devaluation of a currency, but that person needs to also consider that cheap currency == cheap exports and expensive imports which encourages domestic buying, and international export, shrinking trade defecits, and slowly bringing the country back to its feet economically.


What do you guys think?

Your right in the main flaw. I forgot the term for the capitalism system that the Euro-zone uses, but it's main flaw is in dependence. For the US economy, if there is massive deflation more money can be printed, inflation then taken away. When you are talking in terms of nations collaborating with one another you don't have as much wiggle room.

Not to mention it forces nations involved to keep the value around a certain value. Not to say there aren't benefits, as they are, but as of right now just the negative ones are really being shown.

That is the main flaw which is why we should be moving toward Eurobonds in order to restrict the bank's debts. The problem isn't on the side of people, it's the banks. In my country we had to ask for a bailout to help the banks and the state because banks financed many private-public parternships with the state, and because they were greedy they asked for insane interest rates to the state... which had many former bankers or people tied in to them in someway (either throught the private constructors of those partnerships or friendships/families). Unfortunately this keeps happening today. And that's why you can be sure several countries are gonna need another bailout.
Today Portugal announced that despite the austerity measures in place by the IMF, European Central Bank and the European Comission, all has failed and the debt grew even more... and where did it grow? Interest rates. By 17%. That's 3 billion euros. Also because of the austerity private consumption (the people's comsuption) has decreased hence less revenue in taxes for the state.

And the Germans keep saying Portugal is a good student in opposition to Greece... that's because they do want us to fail. Because the banks, Portuguese, Greek, Irish, Spanish and Italian have debts to... are German (mainly Deustche Bank).

This isn't a bailout or a helping hand. This is a con. A very well placed con. Made by the neoliberal capitalists (keynesian capitalist system is what you were missing Just4Hax). And the solution they present is always the same: more austerity... why is that? Because it does not work for the people... it works for their banker friends.

THE euro zone will be different in its members by 2014. Greece will be out, because it cannot keep up with conditions that are imposed for assistance from the IMF, EU and ECB. Assistance will be stopped at some point, and Greece will be forced out. Whether a firewall against contagion to Spain, Italy and Portugal (SIP) works or not depends on the “flexibility” in the use of the European Stability Mechanism

The main advantage of having your own currency is you can change interest rates as and when you please, within the euro that ability is gone. The massive differences in European economies means that interest rates are never perfect for everyone.