Thursday, August 16, 2012
EURO BREAK-UP TO SPARK ECONOMIC BOOM
The break-up of the Euro could spark an economic boom.
(A Doomed Marriage by Daniel Hannan)
On 15 August 2012, Daniel Hannan, a UK member of the European Parliament, reports:
1. "Two thirds of the citizens who use the euro believe it has made them poorer."
2. In 1992, the Euro's predecessor, the Exchange Rate Mechanism (ERM), was wrecking the UK economy.
The UK's Prime Minister, John Major, said that leaving the ERM would be 'the soft option, the inflationary option, the devaluer’s option, a betrayal of the future of our country'.
3. The UK was forced out of the ERM.
4. Britain's recovery began the day it left the ERM.
Europe - Northern France
5. A Slovakian economist reported how very easily Slovakia managed the currency change when it split off from Czechoslovakia in 1993.
6. "Had Greece kept the drachma, it could not have run up the monstrous debts it accumulated by 2010.
"The markets would have stepped in and imposed a corrective at least three years earlier."
7. If Greece goes back to the Drachma, Greek tourism and shipping should benefit.
8. There should be an orderly break-up of the Euro.