Thank you Very Much for your posts Endo & Rhapsody-Parodite,Parodite wrote:Endovelico wrote:A common currency is a logical follow-up on a united economy.
I would say a currency represents an economy that belongs to a socio-political unity. It is totally natural that European countries, as socio-political units, have their own currencies that operate and compete in open markets world wide. Europe is not a social-political unity and doesn't need to become one. Why?
I think manipulating, let alone trying to control trade deficits alias import/export balance sheets by shoving around trucks with money is a waste of time. Bit like trying to control climate change. Squeeze the tire here or there.. all you do is create an extra layer of noise in a complex dynamic system that cannot be controlled by anyone.But it does require either a nation-by-nation trade balance (which can be achieved with adequate investment) or the willingness to make up trade deficits with wealth redistribution by means of public funds.
What stands as a rock though, is the need for socio-political units such as EU nations to be able to produce goods and services. National governments can only to a degree play a positive role in stimulating their economies, unfortunately they tend be in the way most of the time by allowing national deficits to grow irresponsibly, corruption, governmental overhead that only serves government and not the people they supposedly represent.. and most dangerously engage in inbreeding behavior with big financial institutions managed by criminals who love governments and citizens go into bigger and bigger debts, because our deficit is how those guys make their big money. Too big to fail and too big to go to jail of course is something they discovered is an awesome insurance policy and they will milk that cow until.. we stop them.
Instead of moving around trucks with EU money to balance national trade deficits, which is idiotic in my view, a better approach would be to reform the financial industry first, so that banks can become again responsible institutions that serve the real economy. This cannot be done without reforming the political process as well, where the inbreeding of big money and politics should end. The oligarchic siamese evil twin must be separated with a big samurai sword, preferably a political and democratic one. Lest there will be a violent revolt.
Assume the financial industry is reformed and back to responsible health. And the oligarchic siamese twin separated. And national governments once and for all decide to stay away from too big deficits. (I would make that even a constitutional obligation) Then what about the EU and wealth distribution?
My approach to wealth distribution and social issues in the EU is simple.
As in any decent society, you create a social net and a poverty line below which nobody is allowed to perish. Free of charge, free of interest, you give physical support and money where needed. I don't mind paying taxes to support other Europeans that need it badly. You don´t save somebody from drowning and later ask money for it. To do that would be tasteless to say the least, and asking interest on top would be even evil.
But when it comes to economic development, the creation of wealth, it is a different ball game. A healthy banking system that functions independently from politics (!) really can do miracles here. Any good man with a good plan - which can be an individual, a group of individuals who start a business or a co-op, or even a government - can borrow money from any healthy bank to kick-start something from scratch that can grow.. create wealth and well being, contribute to a long term productive economy.
As long as 1) governments decide to not mess up their national economies with irresponsible deficits or market interferences that don't serve anybody except bureaucrats and 2) the financial industry is reformed.. the tides of trade deficits-surpluses will just go with the flow and are not something to worry about.
Wondering if something that might jump start the economy of a confederation or an individual nation would be a non-phony currency.....
Something like making a gram of gold or silver the unit..... Something harder
for politician and central banksters to mess with........At least gold and silver can be used for some practical purposes....
While paper money can at best be burned and most money these days is just opto-magnetic domains on a computer...
At one time dollars were silver certificates and could be exchanged for silver rather than Federal Reserve Notes useful mostly because they can be used to pay taxes to the Fudderal
GumMint oops I mean Federal Govt.If you want sometime even more practical, how about Food Certificates.... Say enough rice ~1 pound/450 to 500 grams to support a human for 1 day ~1600+ calories* .......
Have read that White rice properly stored is Pretty near eternal/long expiration date.....
*More than enough for a woman, probably a little short for a man.... Depends on a number of factors....
http://www.livestrong.com/article/30042 ... s-survive/
