Now Hungary is claiming a financial crisis, can the Euro survive?

[z31maniac]

How much do you wanna bet that if it dies, someone suggests making one world currency?

Matt

I tend to be a bit of conspiracy theorists, I find them interesting to say the least.

But I just don't see it actually happening.

[ck_taft325is]

I'm not incredibly versed in world currency, so, please shine some light on this for me... what does this mean for the Global economy if essentially, all of Europe's economy crashes hard? For America and likewise.

[Farbin Kaiber]

^ It will mean Obama will have to offer them a Bailout.

[ck_taft325is]

^ It will mean Obama will have to offer them a Bailout.

[wildstoats]

I'm not incredibly versed in world currency, so, please shine some light on this for me... what does this mean for the Global economy if essentially, all of Europe's economy crashes hard? For America and likewise.

[ck_taft325is]

That's cheery.

[mrsleeve]

Taft. It means since all the words economies are tied to one another in many ways since WWII. That if the fall down We will to. they will drag us all down with them. Why do you think 0 was pushing hard for the Germans to give even more than they had or wanted to the the greeks. to keep them from going under. It like a string of domino

This was an idea that came outta WWII Mutually Assured Economic Destruction, with all the biggest players in the world economies tied together no one would risk starting another global scale conflict.

[ck_taft325is]

Thanks, Sleeve. That provided an amazing amount of insight into why we're so interdependant upon each other. Question, why would a one world currency be unlikely as z31 believes? Would this be a good idea or a bad idea economically for any given individual country and as a global market? I'd think it would simplify a few areas but at first glance there seems to be quite a few hard issues that would have to be solved such as the most basic... which do we go with? The doller? The euro? Paso's?! And given that each is tied to individual countries economic status or am I off there?

[u3b3rg33k]

As far as I'm concerned, the euro can tank right now. I'm traveling, and the more euros per dollar I get the better. I'd like to see it back to 1$ /.8€

As for this:

You'd be driving a 2002 and hitting on foxy ladies with your groovy sideburns.

Where do I get in line? That thing has a HUGE trunk.

[mrsleeve]

Thanks, Sleeve. That provided an amazing amount of insight into why we're so interdependant upon each other. Question, why would a one world currency be unlikely as z31 believes? Would this be a good idea or a bad idea economically for any given individual country and as a global market? I'd think it would simplify a few areas but at first glance there seems to be quite a few hard issues that would have to be solved such as the most basic... which do we go with? The doller? The euro? Paso's?! And given that each is tied to individual countries economic status or am I off there?

well bear with me here as I am still educating my self on this, but as I understand it.

As far as countries keeping their own monetary system, allows them to some degree control the inflation rates and adjust them to a healthy level for what is happening in their economies. If the economy is strong an health and has lots of growth a little extra money floating around and little inflation is normal and a good thing. If there bad ju ju going down and then you tighten up the supply you can keep inflation under control.

With a single currency this cant happen, you would be tied to the amount in circulation and when bad ju ju goes down it will take the entire world with it. As when a country defaults on its debts the value of the currency goes down over all, lowering the GDP of everyone else using it as a primary currency and any one on the edge this would be enough to push them over and then it will get worse and worse.

You see we are a unique case the US dollar has been the reserve currency all over the world since WWII, EVERYONE holds dollars and we have been selling shit tons of them for the last 30 years and even more so in the last 5. As the worlds reserve currency, shows people are confident that they will hold their value, and will be a solid investment to shore up their own currency. Well the way we have been acting lately that confidence is slipping and we me in the same boat as the euro or worse of all those dollars and Bonds get dumped back into the market.

This is as simple as supply and demand, if we have very little money circulating its worth more or buys more, and if there is more out there then each individual dollar buys less. I remember asking my mom when I was about 6 (while watching some civil war thing on PBS) why the south during the civil war didnt just print more money if the needed it. Well thats the explanation I got then, If a kindergartner can get it why cant our politicians

This is why the Soviet Union failed, they just could not sustain them selves economically, this is why socialism dose not work, it collapses under its own, weight of entitlements, debts, and bureaucracy of big govt.

[z31maniac]

Thanks, Sleeve. That provided an amazing amount of insight into why we're so interdependant upon each other. Question, why would a one world currency be unlikely as z31 believes? Would this be a good idea or a bad idea economically for any given individual country and as a global market? I'd think it would simplify a few areas but at first glance there seems to be quite a few hard issues that would have to be solved such as the most basic... which do we go with? The doller? The euro? Paso's?! And given that each is tied to individual countries economic status or am I off there?

sleeve hit the high points.

If Greece was still using the drachma (believe that was the currency) along with there austerity measures they could try to inflate away a portion of their debt through their own monetary policy.

But like sleeve I'm also trying to increase my financial knowledge as well, so I'm not as well versed as I'd like to be.

Another big problem with the Euro was the debt limits were not enforced, and really had no way to be enforced. There were suggestions on debt-to-GDP ratio, but no teeth behind the suggestions.

[Farbin Kaiber]

Both of you. Links to said "I'm getting knowledge" info. I wanna be smart too.

[mrsleeve]

http://www.amazon.com/s/ref=nb_sb_ss_i_1_8?url=search-alias%3Dstripbooks&field-keywords=world+economics&x=0&y=0&sprefix=world+ec

Some times you have to revert to books my man. The good ones to start with are the ones in the history section.

That a good world economy and read anything thing from a entity with the word "World" and or "Global" in it. Make sure to have your tinfoil hat near by (thats assuming you are going to be using your own mind to make the judgments on the information, and piss your pants like h0lmes would as much of what you will find is a wet dream to him)

[E30Nova]

I tend to be a bit of conspiracy theorists, I find them interesting to say the least.

But I just don't see it actually happening.

I dunno, I remember a couple years ago on CNN they were talking about the whole "Amero" currency. Obviously it hasn't happened, but I thought it was interesting that it made national news...and then disappeared...

Matt

[Ryan Stewart]

The Amero wont work for the same reasons the Euro is in serious trouble. Its hard as fuck to share a currency between soverign nations because one nations policies could impact the value of the currency and fuck over the other. Unless the group holds power over the individual then there is no way to enforce policy to get stability.

I also recall the morons saying the USD was going to collapse. Well, guess where everyone is now? The dollar.