US-economy has had a fat live through oil-markets being traded in USD. If all trade went to EUR or any other currency, I am afraid Uncle Sam would collapse in a ground shaking implosion as all the excess USD in the world would be called at real value, to which there is close to none. All the gold reserves on this planet, including the gold not dug out of the ground would not be enough to support the USD floating the market.
Let's take 2 other angles on this - first on the German arguments and second on what would happen if USD value was called at its real value.
The stated consideration on "cost" of writing of the intra-Eurozone balances would be quite embarrassing, but also a one-off hit. I have no doubt Germany would recover from that quite fast. The long term impact from EURO exits would be far worse. All strong EURO economies (and Germany by far the most) have won by letting the PIIGS enter the EURO zone, because that was the only way to make prices comparable and stop these countries from truly reflecting their currensies' value by a continuously devaluate their currencies ("nature" of economics would enforce than if they were free floating). Being in EURO, salaries became more comparable and the inefficiencies in PIIGS vs. the efficiencies of the stronger North/West of Europe, gave the strong economies the upper hand and a clear competitive advantageous development. So Germany CAN compete with PIIGS countries, but the competitive scenario would be VERY different, had PIIGS not joined EURO.
THAT is a strong reason for Geramny too keep them in
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Europe's Greatest Cover-Up Could Mean The Death Of The Euro
And now for our neighbors in the west.
US-economy has had a fat live through oil-markets being traded in USD. If all trade went to EUR or any other currency, I am afraid Uncle Sam would collapse in a ground shaking implosion as all the excess USD in the world would be called at real value, to which there is close to none. All the gold reserves on this planet, including the gold not dug out of the ground would not be enough to support the USD floating the market.
Read this article for inspiration
www.globalpolicy.org/.../30447.html
Europe's Greatest Cover-Up Could Mean The Death Of The Euro
Let's take 2 other angles on this - first on the German arguments and second on what would happen if USD value was called at its real value. The stated consideration on "cost" of writing of the intra-Eurozone balances would be quite embarrassing, but also a one-off hit. I have no doubt Germany would recover from that quite fast. The long term impact from EURO exits would be far worse. All strong EURO economies (and Germany by far the most) have won by letting the PIIGS enter the EURO zone, because that was the only way to make prices comparable and stop these countries from truly reflecting their currensies' value by a continuously devaluate their currencies ("nature" of economics would enforce than if they were free floating). Being in EURO, salaries became more comparable and the inefficiencies in PIIGS vs. the efficiencies of the stronger North/West of Europe, gave the strong economies the upper hand and a clear competitive advantageous development. So Germany CAN compete with PIIGS countries, but the competitive scenario would be VERY different, had PIIGS not joined EURO. THAT is a strong reason for Geramny too keep them in