The European Central Bank Policymaker says the Euro will be Leading Currency in 10 Years

Posted by PITHOCRATES - January 1st, 2012

Week in Review

Problem solved.  The Euro is saved.  And then some (see Euro could become world’s leading currency: Noyer by Vicky Buffery posted 12/31/2011 on Reuters).

The euro could become the world’s leading currency in the next decade if leaders of the single-currency bloc succeed in tightening fiscal integration, European Central Bank policymaker Christian Noyer said in an article to be published in the Journal du Dimanche…

Contrasting with Noyer’s nostalgia, an opinion poll also due to be published in Sunday’s Journal du Dimanche showed 50 percent of French people thought the single currency had been a bad idea, compared with 35 percent who approved.

A separate article in Saturday’s Le Parisien showed the price of an average shopping basket had risen 22 percent since the euro first came into circulation, with certain basic goods such as the baguette rising up to 30 percent.

I don’t know.  Without a political union the odds are not very good.  The Germans are anti-inflation while the French are all for printing more Euros.  And then you have the spendthrift nations of Greece and Italy.  That will require more taxes by the other member states to bail out them out.  As well as the Euro.

For the Eurozone to really work you may have to do more than get rid of national currencies.  You may have to get rid of nations.  Sort of like the Americans did when they drafted their Constitution.  Once currency.  Once government.  One nation.  And that’s not likely to happen when you have 50% of the French saying the single-currency was a mistake.


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