Mindful
Diamond Member
- Banned
- #1
Quote:
The euro is the most dysfunctional currency ever created
First, the deepest depression ever recorded…
…According to numbers from the IMF published in 2018, Greece witnessed a bigger fall in output than the United States in the Great Depression of the 1930s, and it has lasted for longer as well.
Second, it has created the world’s first post-growth economy…
…Why? Because Italy has become the first major developed economy to go post-growth, with an economy that is no larger now than it was when it replaced the lira with the euro two decades ago.
Next, the world’s greatest imbalances…
…Every year, more than £236bn ($300bn) has to be recycled through the banking system to keep the euro ticking over, creating a vast mountain of debts and credits in the process. It is the major fracture in the global financial system.
Finally, shattered banks. You might think the euro-zone’s strongest economy would have strong banks. Think again. Shares in Germany’s Deutsche Bank have fallen by 90 per cent in the last decade, and just before Christmas it had to deny it would need a bail-out (which is the banking equivalent of having ‘complete faith in the manager’ of a football team). Meanwhile, the Italian banks limp from crisis to crisis and so do the Greek ones as a half-built currency destroys the profitability of an industry that should be one of the foundations of a prosperous economy.
https://blogs.spectator.co.uk/2019/01/t ... r-created/
The euro is the most dysfunctional currency ever created
First, the deepest depression ever recorded…
…According to numbers from the IMF published in 2018, Greece witnessed a bigger fall in output than the United States in the Great Depression of the 1930s, and it has lasted for longer as well.
Second, it has created the world’s first post-growth economy…
…Why? Because Italy has become the first major developed economy to go post-growth, with an economy that is no larger now than it was when it replaced the lira with the euro two decades ago.
Next, the world’s greatest imbalances…
…Every year, more than £236bn ($300bn) has to be recycled through the banking system to keep the euro ticking over, creating a vast mountain of debts and credits in the process. It is the major fracture in the global financial system.
Finally, shattered banks. You might think the euro-zone’s strongest economy would have strong banks. Think again. Shares in Germany’s Deutsche Bank have fallen by 90 per cent in the last decade, and just before Christmas it had to deny it would need a bail-out (which is the banking equivalent of having ‘complete faith in the manager’ of a football team). Meanwhile, the Italian banks limp from crisis to crisis and so do the Greek ones as a half-built currency destroys the profitability of an industry that should be one of the foundations of a prosperous economy.
https://blogs.spectator.co.uk/2019/01/t ... r-created/