Sunday, April 17, 2005

Saving Europe: Wassup With The Euro?

The Gandalf hoard is in 3 currencies - $, £ and Euro. After deciding that it was overweight on Euros, I've been tracking the conversion rate. Sadly, rates have been swooning, so on Friday I moved across at the going rate.

Since my track record in moving currencies is less than stellar, I've probably triggered the collapse of the $ and £. So please don't follow my lead.

Still, something odd is going on.

Experts say that the strength of the Euro is really just the weakness of the $. Which is caused by record US trade and spending deficits. They recommend the US imports less and taxes more. So, say the US raises taxes and puts up French-style trade barriers? Since the world's economies depend on the US as their export market, that would kill them. If the cure kills the patient's parasites, what does that tell us about the parasites?

And why is it so much cheaper to get my books from, when is so much closer?

And, if it's a proper currency, how come Europeans don't accept checks on my Brit Euro account in the same way as Americans do on my $ account?

And how come nobody made a fuss about the French & Germans breaking then changing the rules underpinning the Euro?

And why was there no public outcry when it turned out the Greeks had done something crooked to get into the Euro?

And, if the French reject the EU Constitution - what's to stop them continuing to cook the Euro books?

Just asking.