The blatant dishonesty of the Greeks in hiding off-balance-sheet a crippling amount of debt may end up threatening the entire concept of the European common currency, which is called the Euro.
I was living in Europe when the Euro was introduced. On a personal basis I found it to be great, since the place where I was living in Holland was less than a 20 minute drive from
both Germany and Belgium. Only having one currency to carry around, instead of three, made it far more practical to regularly visit and go shopping in these nearby countries.
On a purely academic and intellectual basis, at that time I didn't feel that the Euro had much chance of long-term survival. It turns out that my ideas may end up proving correct. A number of European countries have blatantly ignored the rules regarding budget deficits and national debt. Some of these European countries have been outright fraudulent in hiding their secret debt. Greece is certainly among that group.
I got this chart from the BBC. England chose not to join the Euro common currency. At the time I thought they were wise to make the choice to keep the British Pound, and I still think they were. But they have a terrible debt burden facing them too.
My forecast ten years out from now is that Italy and Greece will have been proven to be completely unable to control their governmental corruption and their budgets. Both countries will be forced out of the Euro community. Or just as likely, Europe may decide to just blow off the entire idea of a common currency. Germany would be the leader of that pack.
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I was living in Europe when the Euro was introduced. On a personal basis I found it to be great, since the place where I was living in Holland was less than a 20 minute drive from
both Germany and Belgium. Only having one currency to carry around, instead of three, made it far more practical to regularly visit and go shopping in these nearby countries.On a purely academic and intellectual basis, at that time I didn't feel that the Euro had much chance of long-term survival. It turns out that my ideas may end up proving correct. A number of European countries have blatantly ignored the rules regarding budget deficits and national debt. Some of these European countries have been outright fraudulent in hiding their secret debt. Greece is certainly among that group.
I got this chart from the BBC. England chose not to join the Euro common currency. At the time I thought they were wise to make the choice to keep the British Pound, and I still think they were. But they have a terrible debt burden facing them too.
My forecast ten years out from now is that Italy and Greece will have been proven to be completely unable to control their governmental corruption and their budgets. Both countries will be forced out of the Euro community. Or just as likely, Europe may decide to just blow off the entire idea of a common currency. Germany would be the leader of that pack.
.
.
.
.
.
.