The World Economy

Apologies for the serious thread, but I am curious about the opinions of my European friends concerning certain current events.

I don't want to limit this thread, but I hope to keep things related to the economy in world politics. Obviously America has caused certain problems for the world as of late and so have other countries such as Greece and Italy. I am curious, especially from the German perspective, how do you feel about Germany being looked to as the Euro-bank?

Delving deeper, I spoke with a Swedish guy when I was in New York and he brought up the discussion of the EU, currency, and the want/desire to keep ones national currency. This could also include Norway even though they are not in the EU but have a strong economy with some really high tax rates. Do you want to keep your own currency? See the Euro done away with? If so, why?

There is some political talk in the US about the possible dissolution of the Euro due to disagreements on fiscal policy between member states. There is also some talk/rumor around the world about removing the Dollar as the world's reserve currency. I am concerned about this because what other options are there? The US still maintains the largest market which is statistically almost twice as large as China's, not to mention our capacities concerning technological innovations.

These things concern me because we will inherit all of this and the US needs to get on the same page with the world immediately. This means adjusting certain aspects of American ideals such as our spending policies, foreign relations, foreign aid, etc. These things are not easy to accomplish as Americans are remarkably resistant to change, in case you didn't know.

[Ärväthyyll]

Delving deeper, I spoke with a Swedish guy when I was in New York and he brought up the discussion of the EU, currency, and the want/desire to keep ones national currency. This could also include Norway even though they are not in the EU but have a strong economy with some really high tax rates. Do you want to keep your own currency? See the Euro done away with? If so, why?

We got euro several years back. In a way it's better, because it is more stable (well, it was before this economy collapse) and more convenient, but it also made the prices rise sky high (before taking euro, our economists said this won't happen, at least not this much).

Just a silly example, but coffee is something I consume every day: Normal price for a cup of coffee with milk in a cafe was 120 tolars before, which is something like 50 cents. Now you're lucky if you get it under 1,10 eur, but they can go up to 1,70 and more. And these prices happened before recession, euro just sort of doubled everything.

Just a silly example, but coffee is something I consume every day: Normal price for a cup of coffee with milk in a cafe was 120 tolars before, which is something like 50 cents. Now you're lucky if you get it under 1,10 eur, but they can go up to 1,70 and more. And these prices happened before recession, euro just sort of doubled everything.

Actually coffee is kind of a bad example as that's just a general price bump on coffee itself, not just euro causing it. Coffee prices have doubled all over the world due to various reasons related to coffee production and shipping. The euro price bump is a reality though in most countries I'm not saying that, just that coffee was a bad example

Anyways, from my point of view, I see euro mostly as a positive due to the stability(well, if economy goes like it's been going lately - what stability...) and the simple benefits of it making life simpler while traveling / shopping from abroad etc. I'm not one of those silly idealists who are ranting how everything should go back to the "old currencies" because they were "better" ( especially the finnish mark was in HORRIBLE shape before euro started, the whole currency wasn't worth jack shit - and now they're crying to get it back... It's the same as getting Carelia back, its a complete shithole with millions of ethnic russians living there, but since it was a a part of finland in some archaic time, it must be returned!!!!). Some economists have stated that Finland would improve its economic situation dramatically atleast ofr the short term by returning to FIM, but I just see that as inviting long term issues. So as long as the euro currency zone stays atleast somewhat healthy, I don't see a reason to revert back to anything.

[Ärväthyyll]

Just a silly example, but coffee is something I consume every day: Normal price for a cup of coffee with milk in a cafe was 120 tolars before, which is something like 50 cents. Now you're lucky if you get it under 1,10 eur, but they can go up to 1,70 and more. And these prices happened before recession, euro just sort of doubled everything.

Actually coffee is kind of a bad example as that's just a general price bump on coffee itself, not just euro causing it. Coffee prices have doubled all over the world due to various reasons related to coffee production and shipping. The euro price bump is a reality though in most countries I'm not saying that, just that coffee was a bad example

You are right, not the best example, but this happened almost over night when euro came. But coffee aside, everything grew into practically double price from before. Now of course it's getting worse and worse thanks to the general economy. We have romantic people here too that think we'd be better off if we weren't in EU or didn't take euro, but I doubt it. When the whole world economy is in crisis, a small country with not enough resources to stay independent from others can't do much.

Then again, I don't really know much about economy

By how our politics is going, we'll be lucky if we don't go bankrupt like Greece did. Our "authorities" claim everything is fine but we are getting strange warnings from EU and our goofballs in power can't be trusted.

Personally I am in favour of the euro, we have our own currency here in Scotland. But money is different down in England but it is still Stirling. Yesterday in the news down in England the conservative government had a back bench rebellion over the euro issue, as the Tories don`t want to be part of the euro.
But they where defeated by over three hundred votes against eighty back bench politicians. The Conservatives have always been sceptical about Europe I don`t understand why
Historically even in the Saxon period there was a form of currency known as sceattas that could be used on the continent, so this does go back a long way.

Stability has its advantages to be sure. Even though the dollar shifts in value so often it still remains stable. It is our credit rating that has suffered. However, I can't really complain because our credit rating is still much better than most countries.

As to what Ärväthyyll mentioned about romantic people, that is kinda the feeling I got when discussing this issue with the Swedish guy and my ex-girlfriend who is from Croatia. It seems like more of a nationalistic feeling towards wanting one's own currency combined with the previous generation's memories of the 'good ole days' before the Euro, in some countries at least. In Croatia's case, they are set to officially enter the EU in about a year or so I think. But from the way it was explained to me their are older parts of the population who miss Marshal Tito and Yugoslavia. That somewhat confirms what Ärväthyyll mentioned in reference to the body politic. Tito was a strong leader and all I hear from Croatians and Serbians alike is how fucked up their government officials are, maybe because there is a lack of strong leadership or just a general feeling of 'why should we do anything because things will always be fucked up?'

[Ärväthyyll]

Tito was a strong leader and all I hear from Croatians and Serbians alike is how fucked up their government officials are, maybe because there is a lack of strong leadership or just a general feeling of 'why should we do anything because things will always be fucked up?'

Well, I don't believe things will always be fucked up, but in the previous years our both left and right governments went through so many strange affairs and lost so much money that I just don't trust the old faces of politics anymore. You get to choose between politicians you know all screwed it up already. So people are getting apathetic. I'd just like to see new faces in politics.

Tito is overrated. He was a charismatic leader but the price was too high. AFAIK he put Yugoslavia in loads of debts to keep the basic standard - which backfired when he died. So the golden days were just a calm before the storm that all the officials knew was coming.

Sorry for the offtopic.

Still no Euro for us. That's too bad because Hungarian forint is very much unstable.
Some of our cities have their own local currency in order to boost the local economy.

@ Ärväthyyll - no need to apologize. Your statements about politicians return the discussion to the world economy. It is the trouble with the economy that fuels the current Occupy Wall Street movement and similar movements in my country. Like your feelings, people here are tired of the same old politicians and political views screwing things up. We may elect some new faces, like Obama, but nothing seems to change and we find ourselves deeper and deeper in debt regardless of whatever legislation is passed. And when our economy takes a hit it affects the rest of the world, as if we needed any more reasons for the rest of the world to point at America and shake their heads in shame.

It is my personal opinion that America can re-invent herself right now. If we improve our economy and through that process stimulate the EU and world market in return, we might see ourselves in a more positive light such as we were during the years of the Marshal Plan. People might start to 'like' America again rather than see us as an unruly adolescent with a big military. I thought WWI and WWII proved that we are all in this together.

Now time for me to apologize for going off-topic.

[Aldhissla]

I thought WWI and WWII proved that we are all in this together.

That would suggest that people actually learn from their mistakes - which must be questioned when you look at all these neonazi-fucks in my country and elsewhere

Back to the topic, but sticking with Nazis nonetheheless: I have come to like the Euro for its convenience and therefor would hate to see it go, even though I agree with Ärväthyyll that it led to people having to spend heaps more on basically everything (that's why people here call it the "Teuro" sometimes --> teuer= german for "expensive"). There was a documentary on TV the other day doing an analysis on what would be if we were to get Deutsche Mark again (costs, benefits, disadvantages etc.) - and of course I did not watch it.
As for being the euro bank: We're getting a pretty rough time at the moment, especially from Greece (and slowly but surely Italy as well). People there are not happy with Merkel's "You must prove that you're capable of saving and strenghen your economy or else you're not getting any cake" and are calling us Nazis. Has become popular again recently. The spokesman of Syria has lately done so in front of the whole UN Security Council, for instance. (once again, sorry for off-topic)

So, in general, it looks like trying to help and save other countries from bankrupt without even being a leech makes you the bad guy. But as I said, I sadly do not know much about economic matters.