Sunday, 16 December 2012


How inspired I am by Europe's single currency the Euro. As a pledge between the wealthier nations of Europe to support and nurture poorer nations with a lower GDP p.c. within the Union, the single currency signifies almost as much to me as Obama to the US or indeed the advancement of civilisation.  

Where there is currency fraud there is resistance to Europe and monetary union. It seems we prefer to quietly steal money from all of the world's nations, instead of being open regarding national productivity, instead of believing in the right to a first world standard of living and embracing the long term solution. 

With economic prowess, people ask the question: why should we carry those failing nations? Perhaps we should grant those nations more political influence and be prepared to take a page from their successful manifestos. Economic parity is not an absolute necessity. Instead simply that we are all trying equally and learning from each other. Greece may never be as economically successful as France or Germany, because of the logistical disadvantages of her geography. We might however insist that nations with low GDP per. capita within Europe are strongly encouraged, thru taxes, to buy only European goods, which surely no one should complain of?

Yet there are many advantages to currency union, perhaps the most significant of which being the necessity to trade with technologically advanced, younger economies such as China. Not charting a course toward being able to export to these nations is sheer folly. The UK in particular is struggling to let go of it's history as an economic centre, to such an extent that the finance quarter is hindering manufacturing by denying us entrance to the Euro, closing the door on high street Europe to UK manufacturing. After almost a generation of acceptance of the Euro, the situation must be further exacerbated by polarisation: the Euro is the currency of Europe's citizens, why would they spend elsewhere?

Despite the obvious convenience of unified currency, is it really possible to remain outside of the union? In recent years, the UK's pension market was hard hit, attempting to quietly inflate an economy results in overseas investments failing, proving that we are all counting each other's cards, that like it or not our economy is already globalised. 

In the wake of the cold war, the UK has benefitted by remaining outside of the EU, our connections with Russia have perhaps all come to fruition, Russian plutocrats now owning a significant stake in the UK. In this way forming a cushion for Russia's re-introduction to free market capitalism. Yet such an influx would not have been healthy for a fragmented Europe and certainly wasn't healthy for Britain. The separation of the Bank of England, the city to Canary Wharf from Parliament in W1, may be wings we can never give up.

The longterm objectives of macroeconomic policy must be to raise the standard of living for all and especially for those in developing economies, an objective more realizable thru economic union and welcoming global economic monetary authorities. With banking union we may say farewell to the unease created by quantitative balancing. Empowering the World Bank and the IMF with the right to exchange bonds for sovereign debt may help to ease nations out of debt traps. Charting a course towards fewer currencies and a less amoral capitalism, with fewer "leaks". In time it should be possible for people regardless of their place of origin to holiday in any other nation, without expecting to pay a months wages for a meal! 

Aiming for global economic parity, the poorer regions of the world's economy must be gradually inflated. Yet from where should this process occur? From renegade bands of smaller over inflated nations racing ahead on hot air? Or from those respected, economically strong, federated groups? When asked how I would vote in a referendum on Europe, it takes just a moment to contemplate her achievements: Airbus's A380, the commercial European Space Agency, world beating automobile industries, Eurotunnel or scientific endeavours such as the Large Hadron Collider. The choice is clear!

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