In their blind persuit of the euro superstate, the euro zelots forced upon us a single currency instead of a common currency, and by doing so reducing the sovereign parliaments to local councils, who do not have the right of budget.
With a common currency, the national currencies would not have disappeared, and governments would have made their budgets in their own local currency.
Unwise economic policies thus result in an devaluation of that national currency opposite the € euro, leaving less €€€euros in the pockets of the citizens, confronting them with the consequences of their own elections, instead of having other countries paying for their stupidity.

Back to reality

@ Amsterdamsky


You may be originally from Michigan, but you have clearly forgotten how markets 'work' since you moved to 'libertarian oasis'.  Sellers will 'adjust' prices (UP or DOWN) on the basis of both SUPPLY conditions (input costs, which could indeed be affected among other things by exchange rate movements) and DEMAND conditions on the particular market in which they are operating.  In any time period there are many prices going down and many (usually more) prices going up.  

Movements in the general or (weighted) average price level are measured by indexes (CPI, PPI, GDP deflator, etc...) which are calculated by governments.  The most commonly used measure is the CPI because it measures movements in the price level of consumption goods (and services), i.e. of the consumption component of GDP. 

Since the introducion of the euro, annual inflation rates (average annual price increases) have gone DOWN, i.e. those annual increases have become smaller, for most Europeans, and especially for southern Europeans.    Also, exchange rate crises, and their attendant real economic costs (in terms of temporary lost output and employment) have disappeared altogether within the euro area.

So, George2 is largely right about the benefits of the euro. But he is wrong in his last comment about there being no politics without first economics. That is a legacy of faulty marxist thinking, i.e. a marxist dogma that is contradicted by numerous factual observations.... such as North Korea, Burma, Cuba, Zimbabwe, etc... Believe me, in all these places there is "politics" (which is about power) but not much "economics" (which is about broad wealth creation with scarce inputs) to speak of.

If you want to understand the impact of the introduction of the euro on prices it is NOT very sensible to go and ask "any Dutch person" (on the street) if you want an informed answer.  Prices have generally been rising for decades, and people generally do not like it (unless their incomes are rising even faster).  The relevant comparison is NOT whether (or by how much) prices have been rising after introduction of the euro.  The relevant comparison is whether inflation RATES in the euro area have become smaller or larger since interest rate policy has become 'unified' at the ECB in Frankfurt.   

The problem with the euro is that a common interest rate policy only makes sense in an area or zone where there is sufficient MOBILITY of production factors (labor and capital) to adjust to 'local market conditions'.  If there is insufficient mobility, then certain 'declining' areas could experience more unemployment and output loss, compared with a situation where a 'national' currency could be used to pursue a lower interest rate policy and/or exchange rate depreciation.   And, in 'booming' areas, the common interest rate policy of the ECB will exacerbate inflation, if there is insufficient factor mobility.   In America, labor and capital are more likely to move in response to differing 'local' conditions than in Europe. And that is why the American 'common' currency, the dollar, makes more sense than the euro.  In Europe, for the euro to survive in the long run, governments will have to find ways to promote more FLEXIBILITY in labor and capital markets.  And 'national' politicians will have to stop blaming 'Frankfurt' for their own failures to make their own economies more flexible. You think they are up the task? In a culture where even rightists, like Kapitein Andre, join leftists in convenient 'scapegoating'? In Europe, Frankfurt (ECB) is running the risk of becoming a jew or an American.

"The euro is a tool. It does

"The euro is a tool. It does not increase prices. Producers and shop owners increase prices."-George

Shop owners increase prices as their costs increase or they go out of business or in the case of Holland both.  Some of the price increase might have been due to the rebound against the dollar as foreign treasuries bought euros and sold dollars as a hedge but most of it I think just evaporated like all the tax funds paid into the EUSSR.  Try to tell any Dutch person that prices only increase 3% after the introduction of the euro as the government insists.


New Source of energy,,,,

this is something unheard from europe....can anyone verify

*Alles Ausschalten**

*am 1.februar 07 von 19h55 bis 20h00*

*dringend: Aktion gegen den Klimawechsel

*Am 1. Feb 2007: nehmen Sie an der weltweit größten Bewegung gegen


*Klimawechsel teil!!!*

**Verschiedene Naturschutz-Organisationen senden eine Aufforderung an


*Bewohner unseres Planten, die 5 "Schweigeminuten":*

*jeder soll Licht, Strom und sonstiges ausschalten, zwischen 19h55 und


*Fünf Minuten, nicht nur um Energie zu sparen, sondern besonders, um


*Bevölkerung, die Medien und Politiker auf die tägliche


*aufmerksam zu machen.*

*Ein Akt, der nur 5 Minuten dauert, der nichts kostet, der aber der


*zeigt, dass die Klimakatastrophe ein schwerwiegendes Thema der


*sein sollte.*

*Warum dieses Datum? : Am ersten Februar veröffentlicht die UNO die


*Erkenntnisse zum Thema Klimawechsel!*

*ALSO......DREHEN SIE AB!!!!!*

**Turn everything off**

*On February 1st between 7:45 p.m. until 8 p.m.*

*Five minutes, not to save energy, but to*

*Urgent: action against climate change*

*On February 1st you can participate in the worldwide greatest action

against *

*climate change!!!*

*Various environmental organizations are asking the peoples of this

planet to *

*hold 5 minutes of silence:*

*Everyone should turn off all lights, electricity etc. between 7:45

until 8 *

*p.m. to bring attention to other inhabitants, the media and

politicians *

*about the daily waste of energy.*

*An act which takes only 5 minutes, which cost nothing, but shows the *

*governments that climate change should be on the top agenda of world *


*Why this date?*

*On February 1st the United Nations is publicizing the newest results

and *

*knowledge base on climate change.*

*SO...TURN OFF!!!!!!!!!!!!!!!!!!!!!!*

**Faites passer.**

* On éteint tout*

* le 1er février de 19h55 à 20h00*

*Urgent : Action contre le changement climatique*

*Le 1er février 2007: Participez à la plus grande mobilisation des*

*citoyens contre le Changement climatique !*

*L'Alliance pour la Planète (groupement d'associations*

*environnementales) lance un appel simple à tous les citoyens, 5*

*minutes de répit pour la planète : tout le monde éteint ses veilles*

*et lumières le 1er février 2007 entre 19h55 et 20h00. Il ne s'agit*

*pas d'économiser*

*5 minutes*

*d'électricité uniquement ce jour-là, mais d'attirer l'attention des*

**citoyens, des médias et des décideurs sur le gaspillage d'énergie


*l'urgence de passer à l'action ! 5 minutes de répit pour la planète :*

*ça ne prend pas longtemps, ça ne coûte rien, et ça montrera aux*

*candidats aux élections législatives de juin 2007 que le changement*

*climatique est un sujet qui doit peser dans le débat politique.*

*Pourquoi le 1er février ? Ce jour là sortira, à Paris, le nouveau*

*rapport du groupe d'experts climatiques des Nations unies.*

*Il ne faut pas laisser*

*passer cette occasion de braquer les projecteurs* sur l'urgence de la*

*situation climatique mondiale.*

** Est-ce vraiment le meilleur terme ? (CVE)*

I have to agree strongly with George2

Two primary problems with the Euro of course is that: (a) it was originally geared to replace the Deutschmark, especially as Germany remains the engine of the EU, and (b) it is produced by a variety of states instead of a single central bank; of course, a single central bank would imply a further loss of sovereignty for those entering the EU.

Europe Making Sucide....

don't know was it a good idea to relocate to Europe..at least i had to reconsider my decision.....

i learned a lot from European history, for this i need to thanx European...
Perhaps i need to share the basic lessons of what i learned from European history..

I learned that "Evil has to fought to stop it"... where europe learned "fighting is evil"...

Perhaps European intellectuals forgot, that there is no accord in Human history where evil has destroy itself..... evil has prevailed because there were not enough voice to speak against it.... and today again Europeans are making the same grave mistake... what they did by ignoring Hitler in 30's...

Presenting .... the one and Only ....

Chirac : Peace in our time edition....

Guys you were really Great... if we survived the Islamic terrorism.. or if i survived the coming world war and Iranian nukes..... then will remember you...
and i will also remember Europe for dangerous weapons in hands of MonkeyMan
Perhaps European forgot to check the full picture...

or Perhaps Europe forgot the basics.. that if you ignore one Holocaust..
you will welcome another..

No wonder... the ignorance to Bomb Bomb USA, Bomb Bomb UK.. will end with Bombs over them and also over us....

Mr. Chirac...don't you think 2 nukes are enough... one for western Europe, and one for USA...

€ advantages

I certainly think the introduction of the euro has advantages:

1. I don't have 2-3 different currencies in my wallet anymore
2. It is much easier to compare prices of goods (I shop in two countries; other people of my town shop in three countries)
3. Transaction costs went down dramatically (I have multiple accounts in two EU countries); however, I should not include this with euro advantages; it is actually something positive decided by the EU.
4. when I mention 150€ in a discussion with people of different countries, they know what this means, so it improves communication. It takes more time to understand what the value is of 150£ or 150$.

The euro is a tool. It does not increase prices. Producers and shop owners increase prices.

And yes people mix things up. The euro becomes the symbol of everything EU: the mogol that moves from Brussels to Strassbourg and back, all the little rules that annoy EU citizens but make the inventors feel 'useful' etc. As Ségolène Royal recently demonstrated: politicians are too eager to point to the euro for many things that go bad in their countries. Again, the euro is a tool, not a policiy. It makes it easier to carry out policies. I ask myself what cowards as Royal are doing in a union. I don't want to have a relationship with a coward.

One more remark: yes the people are right in distrusting the mogol that swallows money and craps little rules. If Baroso want to gain the trust of the EU people he is not going to crap out yet another constitution. He's going to put the fat lady in Brussels on a diet if he doesn't want to hang her straight away. Economics first and then maybe politics, because there is no politics without economics (and not the other way around).

Euro inflation

Sonamaca, a link for you for the information at Gates of Vienna is:  http://gatesofvienna.blogspot.com/2007/01/first-they-came-for-domain-names.html

The central banks of every country have owners who know how to make money for themselves by creating inflation.  All they need to do is print more money.  More money in circulation means more competition for the same goods, so prices rise.


They can do the reverse by taking money out of the system.  Less money for the same goods can drive demand and make prices rise for essential goods.  They win both ways.  Those who beleive the independance myth of central banks don't question so long as things are relatively in line with expectations.

There is plenty of opportunity for the owners to make money just by knowledge of what is planned.  Manipulation is not all that necessary.

It seems apparent to me that inflation is occurring in EU markets and the euro is not well liked.  Whether it is the fault of the euro, I don't know.  People don't seem to question much in Europe and, if they do, I hear little about questions of any consequence from the media.  They just seem to accept and resign themselves, much different from the US(except for the media).


Consumer prices doubled in Holland

Consumer prices doubled here despite the "official" numbers for inflation of 3%.  This had much to do with the guilder being undervalued at the conversion but there is other funny business that went on.  Something like 20% - 30% of small business went under in the two years after the euro.  Our government blames them for raising prices too high.  Interesting how our government never admits when they make a mistake also.  This carnage was the true reason for the Nee vote on the Constitution. 

mixed up people

"Fortunately, here in Britain the population are [and always have been] very 'mixed up' about the EU indeed."

Unfortunately, the English have long been anti-european and not simply anti-EU. I think England should have used its xenophobic streak to prevent mass immigration from the third-world instead of bashing the EU !

A confused nation

Fortunately, here in Britain the population are [and always have been] very 'mixed up' about the EU indeed. No matter how often we're surveyed or how loaded the questions, the answers are always the same - we don't like it, we don't trust it and we don't want it. It seems we even have the audacity to "mix things up" when completing the EU's own Eurobarometer surveys.

Luckily for Brussels , our neo-Com political class aren't as 'mixed up' as the rest of us and, sadly, they're the ones with all the power.

The Euro and Seigniorage

The thing I have never understood about the euro is how the seigniorage profits are divided up among Belgium, France, Germany and the others. Seigniorage is the difference between what it costs to print currency and the actual purchasing power of the currency. A similar concept applies to checking account balances. In the case of a national currency, it is clear that the government involved keeps the profits. In the case of the euro, the division of the spoils among the member governments must be a contentious matter indeed.