12 responses to “Thoughts on the Euro

  1. Let’s follow the money. So, Peter, who owns the ECB?

  2. Are you going to tell us who you think owns it?

  3. @PJM probably Goldman Sachs.

    Germany which has insisted right from the start that the Euro should be, to all intents and purposes, a continuation of the DM.

    First of all, Germans were never asked if they want the euro,
    ca. 80% would had said no.
    The most important thing for Germany is to do trade with a currency.
    In a soft currency like some countries in south europe,
    savings would always devalue, and all the imports become more expensive.
    That might be realy nice for the multi national corporations because german private people can’t import at a time the country runs huge surplus because it’s locked.
    But they would NEVER ever accept Greek style or Italian style soft currency.
    People already forget that rich italians and companies in Italy, had bank accounts in DM or Swiss franc back then.
    So South Europe wanted low interest rates, but at the same time the possibility to devalue the currency? Well yes Germany always insisted that this is not possible.

    Is there any country very successful in trade with a soft currency??

    Germany has no real wage growth or even real wage decline since decades. Spain and Greece had private loan BUBBLE.

    it’s a tragedy. The euro is terrible, the life of millions of people is destroyed to save the rich.
    If they tell you Germany would lose more as Greece.
    Think about that Germany has now higher wage inequality as UK.
    Just the richest 10% would realy lose.
    3/4 Germans do NOT work in the export business.
    Wages there are low.
    Not many women work in the export sector.
    Women are heavily disadvantaged because of this!
    Could this have todo with the low birth rate? yes absolutely.

  4. Not sure if i wanted to say wage inequality.
    i did mean this here:

  5. Thomas,
    1) I do mean those who make the big decisions in Germany, and not the vast majority of the German people. As you say, many in Germany are having to get by on very low wages. See for example:

    2) Ownership of ECB. Its not Goldman Sachs, nor is it Rothchilds! Its as below, for those who are interested, But ownership isn’t the problem. A change of ownership would not make the EU any more like America which it needs to be for a common currency to work. The US have, for example, a common system of income tax which is paid to the Federal government then it is paid out to the individual States. Wealthy States like California pay in most. Poorer States like Mississippi pay in least. But the proceeds are distributed equitably.

    3) Technically the DM,Euro, Lira, Drachma, US$, Japanese Yen are all soft currencies. All modern day currencies are. They aren’t backed by anything at all. No gold. No silver. They are all just government IOUs.

    • This is what Wikipedia has to say about the ECB: The European Central Bank (ECB) is the central bank for the euro and administers the monetary policy of the Eurozone, which consists of 18 EU member states and is one of the largest currency areas in the world. It is one of the world’s most important central banks and is one of the seven institutions of the European Union (EU) listed in the Treaty on European Union (TEU). The capital stock of the bank is owned by the central banks of all 28 EU member states.[dated info] The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt, Germany.
      So, who owns the 28 central banks that own the ECB?

    • PJM,

      Do you really have a question about the ownership of the ECB? I suspect not. It sounds like you are torn between wanting and not wanting to say something about it! You may as well get it off your chest as you raised the issue to start with.

      • I would like to know the identities of all of the shareholders of the central banks of each of the 28 member states, and how many shares each central bank owns. Wikipedia could have provided the answer directly, but didn’t. Until one knows the answer, one does not know who owns the ECB!
        Similarly, one doesn’t know who owns the US Federal Reserve until one knows the identities of the shareholders of each of the 12 member banks that own the shares in the Federal Reserve, and how many shares each member bank owns. Until one knows the answer, one does not know who owns the Federal Reserve!

  6. Actually, government spending (tax proceeds) are in not distributed equally in the U.S. Poorer states get back much more than they pay in taxes; wealthy states pay much more than they get back. This re-distribution enables the U.S. to more or less function (albeit with considerable regional tensions) in addition to the imperialist rent gained by exploitation of the global South that it benefits from.

    • Yes I’d agree with your first two sentences and the first half of the third. The second half of that sentence is a political comment which could apply to all wealthy nations. It’s unfair to single out the USA in that respect. IMO.

      • It true that all advanced capitalist countries gain from said exploitation, but capitalism always requires a center, and the U.S. fills that role. Its multi-national corporations, as a group in comparison to any other countries’ multi-nationals, are the most rapacious and the U.S. supplies more military muscle, and financial pressure, than any other country. Britain did so in earlier times, but the baton has long been passed.

        Also note that the Obama administration is pushing for the most draconian rules in the ongoing Trans-Pacific and Transatlantic Partnership negotiations — they very well know whose corporations are going to win if their proposals are adopted.

      • Too true! We’re steadily shifting toward government by corporation (fascism) and away from government through plebiscite. Unaccountable and unrestricted neo-liberalism needs to reined in!

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