The end of the Euro ???

Jim Ley writes:

That's a very silly statement, a currency (now none are actually
backed with real assets) are related to their tradeable value and
trust, there's no inherent reason why a multi-nation country should be
stronger, there are lots of reasons why it shouldn't - individual
countries have a good reason to exploit the currency as the costs of
doing so are spread out between the other currencies as an exaample.

The different policies of multiple sovereign states have a moderating
effect on any shared currency, such that a currency used in common by
two dozen states is going to be a lot more stable than a currency used
by just one state. The mistakes of one state won't destroy the value of
a widely-shared currency, although the wisdom of another state won't
necessarily improve its value, either.

--
Transpose hotmail and mxsmanic in my e-mail address to reach me directly.

On Thu, 02 Jun 2005 04:40:05 +0200, Mxsmanic
wrote:

Jim Ley writes:

That's a very silly statement, a currency (now none are actually
backed with real assets) are related to their tradeable value and
trust, there's no inherent reason why a multi-nation country should be
stronger, there are lots of reasons why it shouldn't - individual
countries have a good reason to exploit the currency as the costs of
doing so are spread out between the other currencies as an exaample.

The different policies of multiple sovereign states have a moderating
effect on any shared currency, such that a currency used in common by
two dozen states is going to be a lot more stable than a currency used
by just one state. The mistakes of one state won't destroy the value of
a widely-shared currency, although the wisdom of another state won't
necessarily improve its value, either.

You failed to support your original statement that it's "almost
guaranteed to be more valuable".
--
---
DFM - http://www.deepfriedmars.com
---
--

On Thu, 02 Jun 2005 09:38:55 +0200, nitram wrote:

On Thu, 02 Jun 2005 04:40:05 +0200, Mxsmanic
wrote:

Jim Ley writes:

That's a very silly statement, a currency (now none are actually
backed with real assets) are related to their tradeable value and
trust, there's no inherent reason why a multi-nation country should be
stronger, there are lots of reasons why it shouldn't - individual
countries have a good reason to exploit the currency as the costs of
doing so are spread out between the other currencies as an exaample.

The different policies of multiple sovereign states have a moderating
effect on any shared currency, such that a currency used in common by
two dozen states is going to be a lot more stable than a currency used
by just one state. The mistakes of one state won't destroy the value of
a widely-shared currency, although the wisdom of another state won't
necessarily improve its value, either.

The mistakes of Germany and France are destroying the Euro.

On CNN yesterday, somebody showed that the wealth of EU Europe and the
USA is about the same, however twice as many people have to share the
wealth in the current EU.

More on this in today's NY Times:

Fear and Rejection

By DAVID BROOKS
Published: June 2, 2005

Forgive me for making a blunt and obvious point, but events in Western
Europe are slowly discrediting large swaths of American liberalism.

Most of the policy ideas advocated by American liberals have already
been enacted in Europe: generous welfare measures, ample labor
protections, highly progressive tax rates, single-payer health care
systems, zoning restrictions to limit big retailers, and
cradle-to-grave middle-class subsidies supporting everything from
child care to pension security. And yet far from thriving, continental
Europe has endured a lost decade of relative decline.
Skip to next paragraph


Related More Columns by David Brooks
Readers

Forum: David Brooks's Columns

Western Europeans seem to be suffering a crisis of confidence.
Election results, whether in North Rhine-Westphalia or across France
and the Netherlands, reveal electorates who have lost faith in their
leaders, who are anxious about declining quality of life, who feel
extraordinarily vulnerable to foreign competition - from the Chinese,
the Americans, the Turks, even the Polish plumbers.

Anybody who has lived in Europe knows how delicious European life can
be. But it is not the absolute standard of living that determines a
people's morale, but the momentum. It is happier to live in a poor
country that is moving forward - where expectations are high - than it
is to live in an affluent country that is looking back.

Right now, Europeans seem to look to the future with more fear than
hope. As Anatole Kaletsky noted in The Times of London, in continental
Europe "unemployment has been stuck between 8 and 11 percent since
1991 and growth has reached 3 percent only once in those 14 years."

The Western European standard of living is about a third lower than
the American standard of living, and it's sliding. European output per
capita is less than that of 46 of the 50 American states and about on
par with Arkansas. There is little prospect of robust growth returning
any time soon.

Once it was plausible to argue that the European quality of life made
up for the economic underperformance, but those arguments look more
and more strained, in part because demographic trends make even the
current conditions unsustainable. Europe's population is aging and
shrinking. By 2040, the European median age will be around 50. Nearly
a third of the population will be over 65. Public spending on retirees
will have to grow by a third, sending Europe into a vicious spiral of
higher taxes and less growth.

This is the context for the French "no" vote on the E.U. constitution.
This is the psychology of stagnation that shaped voter perceptions. It
wasn't mostly the constitution itself voters were rejecting. Polls
reveal they were articulating a broader malaise. The highest "no"
votes came from the most vulnerable, from workers and the industrial
north. The "no" campaign united the fearful right, led by Jean-Marie
Le Pen, with the fearful left, led by the Communists.

Influenced by anxiety about the future, every faction across the
political spectrum found something to feel menaced by. For the
Socialist left, it was the threat of economic liberalization. For
parts of the right, it was the threat of Turkey. For populists, it was
the condescension of the Brussels elite. For others, it was the
prospect of a centralized European superstate. Many of these fears
were mutually exclusive. The only commonality was fear itself, the
desire to hang on to what they have in the face of change and tumult
all around.

The core fact is that the European model is foundering under the fact
that billions of people are willing to work harder than the Europeans
are. Europeans clearly love their way of life, but don't know how to
sustain it.

Over the last few decades, American liberals have lauded the German
model or the Swedish model or the European model. But these models are
not flexible enough for the modern world. They encourage people to
cling fiercely to entitlements their nation cannot afford. And far
from breeding a confident, progressive outlook, they breed a
reactionary fear of the future that comes in left- and right-wing
varieties - a defensiveness, a tendency to lash out ferociously at
anybody who proposes fundamental reform or at any group, like
immigrants, that alters the fabric of life.

This is the chief problem with the welfare state, which has nothing to
do with the success or efficiency of any individual program. The
liberal project of the postwar era has bred a stultifying
conservatism, a fear of dynamic flexibility, a greater concern for
guarding what exists than for creating what doesn't.

That's a truth that applies just as much on this side of the pond.

"Runge" wrote in message
...
You're a fine one too


???


"Miss L. Toe" a écrit dans le message de
news: s.net...
as well as the 'new' EU ?





Euro report whips up German storm
A political storm has broken out in Germany over reports that the
government
may be distancing itself from the European single currency.
Stern magazine said that Finance Minister Hans Eichel had been present
at
a
meeting where the "collapse" of monetary union was discussed.

The government is planning to blame the euro for Germany's economic
weakness, the magazine added.

The report was dismissed by both the ministry and Germany's central
bank.

But it comes at a sensitive time for Germany, as the country gears up
for
a
possible early general election following regional poll defeats for
Chancellor Gerhard Schroeder's ruling Social Democrats (SPD).

The euro dipped sharply when the report came out on Wednesday morning,
hitting a seven-and-a-half month low of $1.2230 by 1200 GMT.

Struggling economy


The mere fact that it has been talked about means that it is a big
deal
Jeremy Hodges, Lloyds TSB Financial Markets


Public dissatisfaction with the government's handling of the economy is
one
of the greatest challenges facing Chancellor Schroeder.

His ruling SPD/Green coalition is widely expected to lose a
parliamentary
vote of confidence, due to be held by 1 July, which would trigger a
general
election.

The euro is seen as a potential source of political conflict. According
to
Stern, some 56% of Germans want to go back to the deutschmark.

And dissatisfaction with the single currency has proved a potent topic
in
the campaign ahead of this week's Dutch referendum on the European
constitution.

'Absurd'

Responding to the Stern report, the finance ministry and the Bundesbank
described talk of the euro's demise as absurd.

"Finance Minister Eichel and Bundesbank President Weber see the euro as
a
unique success story and an important step in securing the future of
Europe," a Bundesbank spokesman said.

Both men said they had not taken part in discussions during the meeting
on
the problems facing monetary union.

"The mere fact that it has been talked about means that it is a big
deal,"
said Jeremy Hodges, head of foreign exchange sales at Lloyds TSB
Financial
Markets.

"I see no reason whatsoever to go against the euro move."



Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/h...ss/4599681.stm

Published: 2005/06/01 13:52:29 GMT

© BBC MMV

"Deep Foiled Malls" wrote in
message ...
On Wed, 01 Jun 2005 23:10:09 +0200, nitram wrote:

On Wed, 01 Jun 2005 14:44:18 -0400, Gunter Herrmann
wrote:

Hi!

Miss L. Toe wrote:

The euro dipped sharply when the report came out on Wednesday morning,
hitting a seven-and-a-half month low of $1.2230 by 1200 GMT.

Just wait until EUR 1 = US$ 1 = Yen 100.
Then replace EUR and $ by the Globo,
replace ¢ (both of them) with the Yen.

Just kidding ...

brgds

--
Gunter Herrmann
Naples, Florida, USA

Yeah but are pizzas in Naples Fla. better than in Pizza Hut in Milan?

There's a Pizza Hut in Milan? Plenty of ****ty Spizzico places, but I
don't believe Pizza Hut would show their face here.


there is definately a Pizza Hut in Milan :-)

http://mmipizzahut.com/milan.php

On Thu, 2 Jun 2005 11:59:29 +0100, "Miss L. Toe"
wrote:


"Deep Foiled Malls" wrote in
message ...
On Wed, 01 Jun 2005 23:10:09 +0200, nitram wrote:

On Wed, 01 Jun 2005 14:44:18 -0400, Gunter Herrmann
wrote:

Hi!

Miss L. Toe wrote:

The euro dipped sharply when the report came out on Wednesday morning,
hitting a seven-and-a-half month low of $1.2230 by 1200 GMT.

Just wait until EUR 1 = US$ 1 = Yen 100.
Then replace EUR and $ by the Globo,
replace ¢ (both of them) with the Yen.

Just kidding ...

brgds

--
Gunter Herrmann
Naples, Florida, USA

Yeah but are pizzas in Naples Fla. better than in Pizza Hut in Milan?

There's a Pizza Hut in Milan? Plenty of ****ty Spizzico places, but I
don't believe Pizza Hut would show their face here.


there is definately a Pizza Hut in Milan :-)

http://mmipizzahut.com/milan.php

Gosh, how wrong I am!

It looks rather empty though...
--
---
DFM - http://www.deepfriedmars.com
---
--

"nitram" wrote in message
...
On Thu, 02 Jun 2005 13:45:59 GMT, Deep Foiled Malls
wrote:

On Thu, 2 Jun 2005 11:59:29 +0100, "Miss L. Toe"
wrote:


"Deep Foiled Malls" wrote in
message ...
On Wed, 01 Jun 2005 23:10:09 +0200, nitram wrote:

On Wed, 01 Jun 2005 14:44:18 -0400, Gunter Herrmann
wrote:

Hi!

Miss L. Toe wrote:

The euro dipped sharply when the report came out on Wednesday
morning,
hitting a seven-and-a-half month low of $1.2230 by 1200 GMT.

Just wait until EUR 1 = US$ 1 = Yen 100.
Then replace EUR and $ by the Globo,
replace ¢ (both of them) with the Yen.

Just kidding ...

brgds

--
Gunter Herrmann
Naples, Florida, USA

Yeah but are pizzas in Naples Fla. better than in Pizza Hut in Milan?

There's a Pizza Hut in Milan? Plenty of ****ty Spizzico places, but I
don't believe Pizza Hut would show their face here.


there is definately a Pizza Hut in Milan :-)

http://mmipizzahut.com/milan.php

Gosh, how wrong I am!

It looks rather empty though...

Worse , much worse ...
http://www.pizzahut.it/

Not one to buy shares in I suspect.

Now if they rebranded their 'product' as fried bread with cheese on top,
they might attract some of the British Breakfast crowd.

On 2/06/05 12:48, in article ,
" wrote:

Western Europeans seem to be suffering a crisis of confidence.



Yeah, they were depending on the American recovery too.

*
Job reductions soar 42% in May
Report: Computer firms lead the surge, but it's too early to worry about
weakness in U.S. economy.

June 2, 2005: 11:02 AM EDT

NEW YORK (CNN/Money) - Planned job cuts announced by employers soared 42
percent in May after hitting a five-year low in April, but it's too early to
worry about weakness in the economy, an employment firm said Thursday.

Employers announced 82,283 job cuts in May, compared to 57,861 the previous
month, according to a monthly report issued by Challenger, Gray & Christmas.

May job cuts rose 12 percent from the year-ago period. So far this year,
427,278 job cuts have been announced, 4.6 percent more than the five-month
total of 408,392 last year, the report said.

Computer companies -- which reported 17,886 cuts, or about one-fifth of the
monthly total -- led the rise in May, while the transportation industry
ranked second with 7,339 announced job cuts.

Weakness in the European economy contributed to the May computer cuts, the
report said, adding that companies in other industries can expect to
encounter similar challenges.

But it's too early to harbor concerns about a softening U.S. economy, the
report said.

"If job cuts do not lessen in June, July and August, which historically are
the lowest job-cut months of the year, then it might be time to be concerned
about the economy's strength," John A. Challenger, chief executive officer
of Challenger, Gray & Christmas, said.

The report also noted that employers appear to be retaining their workers,
but appear reluctant to add new one. Job creation, while improving, is still
well below the pace of previous recoveries, it said.

**

and of course there are the US auto sales----


*
Jobless claims jump on auto layoffs
Weekly claims hit 350,000 versus forecast for 325,000, marking highest
reading since late March.
June 2, 2005: 8:36 AM EDT

WASHINGTON (Reuters) - Temporary layoffs in the U.S. auto industry helped
push initial claims for jobless benefits up by a sharper-than-expected
25,000 last week, according to a government report released Thursday.

The numbers suggested little change in the underlying pace of layoffs.

First-time claims for state unemployment aid climbed to 350,000 in the week
ended May 28 from a revised 325,000 the prior week, the Labor Department
said. That was the highest reading since late March.

An analyst with the department said comments from individual states
indicated "a good portion" of the rise was due to temporary auto industry
layoffs, unrelated to regular summer plant shutdowns for retooling, which
take place in July.

Economists had expected initial claims to inch up to 325,000 from the
323,000 initially reported for the prior week.

The larger-than-expected gain pushed a four-week moving average of claims,
which smooths weekly volatility to provide a clearer view of trends, up
3,500 to 334,500, its highest level since early April.

The number of Americans who remained on the benefit rolls after claiming an
initial week of aid also moved higher, rising 32,000 to 2.60 million in the
week ended May 21, the latest period for which figures are available.

***

Of course, US unemployment figures are pure fiction, the hidden unemployed
far exceeds those "looking for jobs"

Earl

*

On Thu, 02 Jun 2005 13:45:59 GMT, Deep Foiled Malls
wrote:

On Thu, 2 Jun 2005 11:59:29 +0100, "Miss L. Toe"
wrote:


"Deep Foiled Malls" wrote in
message ...
On Wed, 01 Jun 2005 23:10:09 +0200, nitram wrote:

On Wed, 01 Jun 2005 14:44:18 -0400, Gunter Herrmann
wrote:

Hi!

Miss L. Toe wrote:

The euro dipped sharply when the report came out on Wednesday morning,
hitting a seven-and-a-half month low of $1.2230 by 1200 GMT.

Just wait until EUR 1 = US$ 1 = Yen 100.
Then replace EUR and $ by the Globo,
replace ¢ (both of them) with the Yen.

Just kidding ...

brgds

--
Gunter Herrmann
Naples, Florida, USA

Yeah but are pizzas in Naples Fla. better than in Pizza Hut in Milan?

There's a Pizza Hut in Milan? Plenty of ****ty Spizzico places, but I
don't believe Pizza Hut would show their face here.


there is definately a Pizza Hut in Milan :-)

http://mmipizzahut.com/milan.php

Gosh, how wrong I am!

It looks rather empty though...

Next project: American Wienerschnitzel outlets in Austria.


************* DAVE HATUNEN ) *************
* Tucson Arizona, out where the cacti grow *
* My typos & mispellings are intentional copyright traps *

nitram writes:

The mistakes of Germany and France are destroying the Euro.

The euro seems to be doing quite well.

On CNN yesterday, somebody showed that the wealth of EU Europe and the
USA is about the same, however twice as many people have to share the
wealth in the current EU.

How is this related to the euro?

--
Transpose hotmail and mxsmanic in my e-mail address to reach me directly.