Law /
WHAT ARE THE BENEFITS OF THE EURO CURRENCY TO POLAND? [101]
What I find funny that on this thread there are Americans present that advise against the Euro, saying that the small ppl will lose out on the Euro. What the heck? Americans don't know about the workings of this system, heck, they barely know how their own system works, so it would be appreciated if they didn't participate, or if they do, bring in some constructive ideas, comments, or sth and not negativism, scaring ppl to bits.
Yea, no clue about the monetary system. Anyway, individuals see a short term benefit because they don't have to exchange money, fair enough. The long term loss comes from lack of control of the money supply. When you lose control of the money supply, you lose control of being able to devalue your currency as a stop gap for bankruptcy and economic slowdown. Seems like your ideas just lightly scratch the surface.
monetary control of the state? Let me tell you: millions and millions are getting lost every week/month due to exchange rates. Yes the countries who haven't adopted the Euro are doing less than the ones that did. I wouldn't want to take Greece as an example, they fcuk up everything anyway, Euro or no Euro. And why is there so much pressure from within in those non-Euro countries to adopt it?
Denmark, Sweden, the UK, Norway, Switzerland....problems with trade?
How are things going in Slovakia since they adopted the Euro? Ask the Hungarians, they're seeing the benefits...
There is pressure to adopt in CEE, because there was no opt-out clause.
How are millions and millions being lost? You ever heard of hedging? Forward contracts? You know what the spread is on currency transactions that aren't done at a little hut? How do you think Poland would have fared over the last couple of years had they not devalued their currency? Countries in the Eurozone can't devalue their currency, so they go into massive debt and have to declare bankruptcy and completely destroy their credit rating, as opposed to increasing the money supply and living with the inflation.
In the UK, the captains of industry are quite happy with the pound....because they can influence it. Notice darling pumping money into the economy? Quantitative easing is not possible when you lose control of monetary policy.
Just for shits and giggles, here is the current spread for GBPUSD
Bid Offer
1.5395 1.5400
you can work out the percent. transaction fees are lower than the spread.
