reply on: Eurozone facing acute debt crisis \ stacker news ~econ

20 sats \ 6 replies \ @TomK OP 19 Jun \ parent \ on: Eurozone facing acute debt crisis econ

We need some patience. But this union is going down and the transition phase will be tough

I dont think it needs to be a hard transition, though. If each country cobtrolled their own currency and bought euro with it, it would work fine.

20 sats \ 4 replies \ @TomK OP 19 Jun

the problem is, for example, that the southern european countries, which actually need a devaluation of their currency by at least 30 to 40% compared to the euro exchange rate, would be insolvent the moment they introduced their own currency. that means the entire credit market there would collapse, which would lead to the collapse of the entire fiat system. life in southern europe is much more complex, economically divided and tense than in the north. that would be social chaos. Don't think there will be a rational simple transformation phase here

42 sats \ 3 replies \ @Satosora 19 Jun

I realize each place has its own difficulties, but the cant forever be chained to the north.

20 sats \ 2 replies \ @TomK OP 19 Jun

the problem with the eurozone and the euro is that the much more competitive north has established a kind of neo-mercantilism here. with an artificially low valued currency and a labor market for cheap labor, the south has been played against the wall, especially in the industrial sector.

42 sats \ 1 reply \ @Satosora 19 Jun

If the southern states have their own currency, even if it is worth less at least it wont be dependent of defaulting every few years.

0 sats \ 0 replies \ @TomK OP 19 Jun

or do i have bad news. the monetary history of the southern european states in particular has been fatal to hopeless. so it went on as before, rather socialist governments would buy their votes with the money printer.