End the Euro - Yea or Nay?

Should the EMU be disbanded and the euro canned along with it? If you are a citizen of an EMU country then you may vote. If you are not, you can have an opinion. Or you can make a prediction: is the Euro toast?

I would like to see all the European currencies come back. I wonder if the EU could continue in some form without the single currency.

I was wondering if anyone on forex factory was involved with FX trading before the Euro? I would assume as a trader that if the Euro was abolished, it would be a disadvantage to traders.

On the surface it would seem to be better to have a lot more pairs to trade,but the bid/ask spread would be a lot wider than the typical bid/ask spread that is on the Euro, and only a handful of pairs would have the liquidity to be suitable to most typical traders?

Could there be a "run on the euro"...? At what point would speculative trading on euro pairs be suspended? What implications would such an event (i.e., end of the EMU and the euro) have for the retail forex trade industry?

nay,

This just bump in the road.

There are many disadvantages if the euro canned, except for The US.
The European country is unite to make new block of economy against US dollar as major currency in the world.
I don't think the Korean issue just coincident when in the same time Europe has bad news and The US need more money to saved the holiday.

Anyway this just my thought because I see anomalies why US dollar retrace so fast in these couple of days.

I dunno man - things are lookin pretty grim across the pond....

Going back to the Deutsch Mark would mean that german products get really expensive for our european trading partners since the DMark would probably rally against all the other european currencies.

While I do have serious doubts about the euro area being able to exist in its current shape, I'm pretty sure that a slimmed down core euro area will keep existing. Though I wouldn't be surprised to see some peripheral, i.e. mediterranean, countries getting kicked out of the euro area for constant lack of fiscal and monetary discipline.

Time staggers on, water under the bridge, and so on. But we're still here: will the EMU survive?

what politician is fool enough(pun intended) to allow it to disband under his watch(it'll be grim, to say the least - defaults, global banks down, etc.).

on the other hand, what politician can be fool enough to propose some form of treasury(and still be elected in this anti EU environment which is prevalent in all Europe right now)

the road will be long; the can heavier and heavier... and leadership won't show up anyway. They take decisions nowdays only by looking at the polls.

Here's an insightful interview with J. Rickards. He makes some good points on the subject.

Looks like toast, unless Europeans agree to complete economic and political union, which of course will never happen.

never say never...

http://news.yahoo.com/former-german-...152550361.html

http://news.yahoo.com/nearly-40-pct-...230827577.html

LONDON (Reuters) - Europeans are plagued by mental and neurological illnesses, with almost 165 million people or 38 percent of the population suffering each year from a brain disorder such as depression, anxiety, insomnia or dementia, according to a large new study.

Fool...one simple question:

Which one do you think is a better currency: EUR or USD ?

I mean, i can see your bias from the title alone but would like to hear your explanation.

thanks.

I think the fundamental problem has been ego and pigheadedness combined with a large dose of stubbornness and arrogance (phew) on the part of the ECB, which of course, includes that idiot Trichet.

Way back when Greece defaulted, a lot of people forecast what we now have, as a consequence of not letting Greece default from the get go. But no, those arrogant pricks thought that they could save everyone, and now, they *do* have to save everyone, (PIIGS), and they have finally realised that they can't.

They set a precedent with Greece, and now it's gonna bite the on the bum.

Yes the Euro will survive, as will the EZ, but not as we know it Jim

In the narrow current context, the euro is a flawed instrument whose flaw derives from the underlying problems in the EMU itself. You see in the clip above Shroeder calling for a "United States of Europe" and of course there's the rub: a monetary union of states with wildly disparate fiscal policies is flawed in and of itself.

Ironic, of course, that it is always the Germans who are calling for more eurpean integration or, more likely, bitching about footing the bailout bills, since the creation of the euro effectively allowed a deflation of the deutschmark to the extent that Germany now is the second largest exporting country on earth, closely behind China.

The 21st century is shaping up to be a real mutha, if you ask me. These various crises: the "credit crisis" and now the incipient crumbling of the EMU are symptoms of deeper problems with the programs of globalization and capitalism itself. Factor in population growth out of control and the insanity of the dominant skygod religions and any student of history could extrapolate a bigger than ever smoking mess on the horizon.

The sad reality is that the Euro in the current circumstances with such a big disparities in fiscal macroeconomic management between its members and still paying the consequences of the financial crisis was/is not prepared to cope with the expectations.

It has been a historical moment in world economics. In the real economy China and other Brics has profit and taken a good piece of the pie left by the US, Europe and Japan. In currencies, the euro was the only logical alternative to challenge the dollar monopoly as a world reserve currency but is far from ready.

The main problem for Europe is that is in a losing game whatever the case. On one hand, it doesn't stand a chance to keep the track of the world (in politics and economics) in the long run without some kind of common front.

On the other hand in the short term, only the typical big players (UK, France and Germany) could cope with a break of the EU or the euro but the competitive distortions of free riding in such interdependent block will kill any change of improve the competitiveness and generate growth.

Only the UK is "allowed" to free ride with the pound (only because it size and importance) and it has artificially cope with the current problems devaluing (and still is not even one inch better than France or Germany...also near the abyss), but if you have 27 doing the same it will cause a mess and put Europe on "killing" each other (in economic terms I meant...hopefully they won't cross the other line again although some media like the telegraph will probably love it ...).

The main problem is for the other players. Greece is paying +50% on 2 yrs bond AND THATS with THE EURO, imaging without it ... (inflation, depression, devaluation, etc, CHAOS more than now)....

My point is that, the euro is not the problem of what is going on in Europe. Greece and friends are a MESS because of their mismanagement and poor economic policies to promote growth. Ending the euro will only delayed even further a more level Europe. An a less leveled Europe run the risk to suffer even more in the long run.... My vote is address the real problems not the tools. The euro is just a tool...

sisse

I think EUR will survive. Too many efforts, too many funds spent to abandon it now.
And can you imagine what happens if it will be decided to refuse from the euro? Nothing good...

Though EUR is artificial. May be Esperanto's destiny is in store for it?
But I said "Nay"

Of course one of the problems of the European Zone is that countries with different economics have been united. You can hardly compare the French or German economy with that one of Greece. And the "big brothers" have to help the poorer countries. Why should they?


Can you name any country with good management? I think if there were no problems with mangement we would not face any financial crises at all...