Euro poised to inflict new wounds on Europe

[celticlord]

Euro poised to inflict new wounds on Europe - Telegraph

The overvalued euro, now brushing $1.40, is weighing heavily on an already fragile economy. The eurozone shrank 4.6pc over the 12 months to the end of March, compared to 2.6pc in the US. What's more, official interest rates are higher in the eurozone even though deflation is approaching.

It is interesting to read on the one hand talk of the dollar's demise as a reserve currency, and then to on the other hand read articles like this, which portray Europe as imploding economically, with the US in a comparatively strong position.

How to tell which version of events is the more realistic?

 

[PeteEU]

Euro poised to inflict new wounds on Europe - Telegraph

It is interesting to read on the one hand talk of the dollar's demise as a reserve currency, and then to on the other hand read articles like this, which portray Europe as imploding economically, with the US in a comparatively strong position.

How to tell which version of events is the more realistic?

Non.

It is written by anti Euro pro US people and organisations and is the same bs crap they have been saying since the Euro was made. They are the same people who have been claiming that Europe will be Muslim in 30 years and that we are all socialists, have no freedoms and pay 150% in tax.

If the Euro is so "bad" then why have oil countries and other countries been thinking of switching to the Euro as a method of payment instead of the dollar? Because the Euro has been relatively stable, where as the dollar and pound have been highly unstable (relatively speaking).

Now that aint saying that the Euro is all pretty flowers and good smells. It aint perfect (no currency is) but it is hardly on the brink of collapse as these "doomsayers" claim.

In fact the Euro zone is far more healthy economically than the UK and US as it stands now and the future projections.. for now at least. Unemployment in the Euro zone is at the same level as it is in the US for example and the US unemployment rate (official) is projected to go past the Euro-zone unemployment numbers over the next few months. The US and UK have the same or higher government debt than most of the Euro zone and unlike the US and UK, most of the Euro zone (minus Spain) were not hit by a massive sub-prime mortgage backlash at the consumer level. We also have a far far far far higher saving rate than the US and UK and that in times of crisis is good. But yes we also have issues on many other fronts where the US and UK are ahead, such as worker mobility and so on.

This article is nothing but the same as all the other anti-Euro articles and opinions by the far right pro US Europeans backed by their American friends.. all part of the never ending propaganda war by the US right to demonize anyone threatning the US on the political and economic front.

 

[Wessexman]

Non.

It is written by anti Euro pro US people and organisations and is the same bs crap they have been saying since the Euro was made. They are the same people who have been claiming that Europe will be Muslim in 30 years and that we are all socialists, have no freedoms and pay 150% in tax.

If the Euro is so "bad" then why have oil countries and other countries been thinking of switching to the Euro as a method of payment instead of the dollar? Because the Euro has been relatively stable, where as the dollar and pound have been highly unstable (relatively speaking).

Now that aint saying that the Euro is all pretty flowers and good smells. It aint perfect (no currency is) but it is hardly on the brink of collapse as these "doomsayers" claim.

In fact the Euro zone is far more healthy economically than the UK and US as it stands now and the future projections.. for now at least. Unemployment in the Euro zone is at the same level as it is in the US for example and the US unemployment rate (official) is projected to go past the Euro-zone unemployment numbers over the next few months. The US and UK have the same or higher government debt than most of the Euro zone and unlike the US and UK, most of the Euro zone (minus Spain) were not hit by a massive sub-prime mortgage backlash at the consumer level. We also have a far far far far higher saving rate than the US and UK and that in times of crisis is good. But yes we also have issues on many other fronts where the US and UK are ahead, such as worker mobility and so on.

This article is nothing but the same as all the other anti-Euro articles and opinions by the far right pro US Europeans backed by their American friends.. all part of the never ending propaganda war by the US right to demonize anyone threatning the US on the political and economic front.

So the British telegraph newspaper is part an American rightwing plot? I didn't think this was the conspiracy theories section.

I also love how the actions of a very pro-EU British gov't are taken as somehow giving great proof of the Eurozones benefits and structural problems in the British economy that go deeper than New Labour's mismanagement. Europhile New Labour ****ed up, it screwed the British economy, this is hardly vindication for anything but the idea New Labour suck.

 

[PeteEU]

So the British telegraph newspaper is part an American rightwing plot? I didn't think this was the conspiracy theories section.

Where do I say that? The Telegraph is not exactly impartial to when it comes to EU and Euro is it now?

The whole article is a wet dream for euro skeptics and full of half truths and half facts and possible outright lies.... hard to tell from the smoke and mirrors and without any links to where they get their figures from.

Lets look at some of the "facts" in the article.

The eurozone shrank 4.6pc over the 12 months to the end of March, compared to 2.6pc in the US.

A very selective fact without anything to back it up. Latest GDP numbers saw the US contract by 6.3% in the last quarter of 2008 and 6.1% the first quarter of 2009. Funny how that aint mentioned right? Funny how it is also not mentioned that France in the first quarter had its economy only shrink by 1.2%... funny no?

Exports fell 17.2pc over the year to the end of March, while GDP slumped 6.7pc.

This is in reference to Germany. Considering that Germany is the 2nd biggest exporter on the planet, any downturn will hurt Germany considerably.. that is just logic. However it is funny how the article compares the US and Europe and forgets to mention that the US exports fell 30%... makes you wonder about the articles "point of view".

Italy's debt exceeds its GDP, giving the country little scope to respond fiscally to the economic downturn.

heh, how stupid do you think people are? Italy has ALWAYS been the sick boy of Europe and the EU and has had its debt exceed GDP for like forever. Italy's problem are political and structural not the Euro or the EU. And in matter of fact, the UK and US are going for higher debt vs GDP than most of Europe, and funny how that is not mentioned one bit.

And of course the article brings up Ireland.. the former darling of the exact same bunch of people who hate the EU.. now the "poster boy" of why the EU is bad and the Euro is worse.. pathetic. Funny how nothing is mentioned about how Ireland got into the mess they are in.... oh yea that was using the very economic theory that the same crowd love to push.. guess its best not to bring up that your whole economic theory is a bust.. oh well.

The article has very little basis or analytical view point and is highly biased against the Euro and Europe/EU in general and pro US economic theory.. well US neo con right wing economic theory that brought us into the freaking mess we are in now.

As I said, not all is rosey in the Euro zone but it is also no where near as "bad" as the euro skeptical British media and US right dream up almost on a daily basis. Last I looked we had several countries in Europe with considerablly lower unemployment than the US and UK. Last I looked the Euro zone unemployment was 7.5% and that is including the insane unemployment in Spain... take that out and I bet the unemployment rate would be lower than the US.. wait it already is, since the official US unemployment rate is flawed. So an economy that has lower unemployment, has lower government debt vs GDP, has not lowered its interest rate to 0 and has less of a fall in GDP, is all of a sudden on the verge of collapse?

 

[Wessexman]

Where do I say that?

I certainly got that impression:


It is written by anti Euro pro US people and organisations

This article is nothing but the same as all the other anti-Euro articles and opinions by the far right pro US Europeans backed by their American friends..

all part of the never ending propaganda war by the US right to demonize anyone threatning the US on the political and economic front.

I apologise if I got it wrong but it does very much look like you are saying something close.

The Telegraph is not exactly impartial to when it comes to EU and Euro is it now?

Neither are you, me or the BBC. I don't see the point here.

The article has very little basis or analytical view point and is highly biased against the Euro and Europe/EU in general and pro US economic theory.. well US neo con right wing economic theory that brought us into the freaking mess we are in now.

I didn't disagree with you actually, or agree, but I notice you have not dealt with my point ie that this damage to the UK was done by a Europhile New Labour gov't and this is then hardly a vindication of the Eurozone.

On the US and the Eurozone I'm not sure who to believe, as Celticlord says it is very much up in the air between different sources at this time. The truth no doubt is somewhere in the middle.