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| Britain |
| Britain don’t join the Euro |
| 2003-06-14 |
| ed for length Although it was the third ECB rate cut in just six months, the ECB had actually been far slower to respond than other central banks as they sought to stimulate the world's flagging economies. what a surprise! they are so ineffectual on the world political stage via the UN that why anyone should expect them to manage a united economic zone any better is beyond me. Besides, what is good for one economy is not necessarily good for all: so no wonder the beaurocrats are a) slow to respond and b) completely ineffectual when they do. All the while, the rising euro threatens to make Europe's export goods and services over-priced to global markets. But the big eurozone economies of Germany and France are in a double bind because the eurozone's economic and management union charter dictates government spending cuts at a time when spending is needed for economic stimulus. One would be tempted to laugh at them if the repercussions were not global and severe. The most humourous aspect was that some EU beaurocrats were actually proud that their once-pitiful currency had grown legs. Well it will be a bitter laugh. Pride is expensive. You can have an overvalued Euro if you like because for every 1% that the US$ falls, that makes US exports 1% cheaper than their European competitors. But this absolute failure of beaurocracy to make effective decisions to aid even the largest EU economies is one of the best arguments why Britain should not abandon the pound and completely hand over their decision-making ability to a bunch of Eurocrats - bendy plastic-wrapped cucumbers notwithstanding With some understatement, economists for Lehman Brothers recently declared: "We are concerned that the rapidly rising euro could consign the eurozone to an extended period of stagnation." The ECB rate cut and the seriously underlying problems in so many of the eurozone economies have been fortuitous for Britain's influential "eurosceptics" - those who see membership of the European Union as a necessary evil but are not prepared to sacrifice the pound and adopt the euro. Yes, Britain RUN, run away from the Euro. Don't walk. I wonder what The Borg make of all this. While their militant wing is scratching around for uranium to make a dirty bomb, their economic wing is watching with interest. I suspect they believe they may pull down the US economy with a well-timed action considering the US$ is teetering on the brink. Once it falls below 92 on the USDX (currently at 92.22) there is no telling where it will stop. That is a major resistance point from way back in 1999. It may have only fallen halfway against the Pound, Euro, Aus$, Can$ etc. There comes a point where the benefit to exports is outweighed by the destruction of faith in the dollar system and The Borg know it. Dr Mahatir is soon to speak of the introduction of the Islamic Gold Dinar: currency of The Borg |
| Posted by:Anon1 |
| #8 Take a look at the map and see what Australia is facing to the NW. Both Britain and Austrailia have similar values as the US. Those kind of values must be strengthened. Telecommunications brings them electronically close to the US. There is the distance issue, but sea lanes are not hostile. Jeff has the right idea, but the trade area should be TRANS-AL-PAC instead. |
| Posted by: Alaska Paul 2003-06-14 12:42:01 |
| #7 Australia deserves a free trade agreement with the U.S. - how many times have they stood by us when few others would? I personally will guarantee the Australians a trade surplus on their wines ;-) |
| Posted by: Frank G 2003-06-14 10:40:11 |
| #6 Australia has been trying to get a free trade agreement with America for years too, and it might finally be happening soon. |
| Posted by: Paul Moloney 2003-06-14 07:27:04 |
| #5 Still waiting for G-Dub to invite Tony to join a "Trans-Atlantic Free Trade Area"...Congress should throw in honorary US citizenship, too, while they're at it... |
| Posted by: Jeff 2003-06-14 04:11:30 |
| #4 Anon1 - as a US Navy veteran I wholeheartedly approve of the idea of basing American personnel in Australia, for really long tours of duty. Have 'em build large fleet bases, so guys can spend their entire careers there shuttling back & forth between shore billets and homeported ships. I personally have pleasant memories of Australia from a port call in Burnie (Tasmania) 26 years ago. And especially pleasant memories of an 18 year old brunette student nurse... :D |
| Posted by: Jeff 2003-06-15 00:23:35 |
| #3 Yes, we share a common foundation culture, Britain, Australia, the US and those links are strongest. Yes, I would personally LOVE America to shift its NKor base to Australia, so that I can have 50,000 Marines, it will improve the pool of datable guys no end, we need some hot american guys in this country so bring your bases down under!!!! |
| Posted by: Anon1 2003-06-15 00:14:52 |
| #2 Jeff, Although I think your idea is great, and I would certainly support it, I can't see President Blair going for it. The guy has almost got a Jekyl and Hyde character, he does the right thing with Iraq, and stands side-by-side with America. In other words, he is a great Statesman. However, we have the debacle over the Euro and all things European in general (the constitution being the most important), as well as the erosion of civil liberties, the destruction of centuries-old institutions and the continual disregard of the populace. It's bloody infuriating living in the UK at the moment. |
| Posted by: Tony 2003-06-14 16:11:19 |
| #1 Asian-Pacific Co-Prosperity Sphere? (just kidding...) Trade agreements and mutual-defense treaties with Australia are long overdue. If only they played *proper* football... |
| Posted by: mojo 2003-06-14 14:56:52 |