eurozone
Out of context: Reply #41
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- maikel0
I think there is a little misconception on what is going on.
Germany has taken an abusive currency policy durin the last years, but if Greece 'opts out' from the Euro, the Greek people would have it really bad. A massive devaluation would mean that all the products valued at international value won't be affordable anymore.I am not talking about a hoodie with an expensive mobile as in UK, I am talking about companies unable to buy or update computers, or machinery... for example.
I've seen this in South America, and it is not very pretty.
If Germany, on the other hand, says fuck all... it is another kind of problem. They won't have who to expert they goods, and will lost in turism, as it will become as expensive as any of the nordic countries. The consequence of the Eurozone of losing German funds would probably mean a devaluation in real terms against other currencies, and probably increased borrowing cost.
My proposed solution is to include China in the Eurozone... but I doubt they would be interested...
- abusive or protective?coldarchon
- abusive: they intentionally kept pseudo-devaluated curreny in terms of their real economy boost the exports...maikel
- no new 'rich countries' as Greece. Bear in mind the Greeks found themselves with an extremely strong currency...maikel
- that was out of touch with their economy from the go.maikel
- +++++++_niko