Posts Tagged ‘Euro’

The Folly of the Euro

March 5, 2009

While giving up one’s sovereignty seems to be a popular idea, it is not a prosperous one.

A while ago, as many as 16 European countries adopted the Euro. This would encourage trade throughout Europe, as all the goods are bought with the same coin. This benefits tourism and is a large step towards globalization.

However, when a nation gives up its sovereignty, other countries often make decisions that ruin it. The current issue at hand is the Euro, which is rapidly inflating (3.9+ % per year compared to the U.S.’s 2007 rate of 2.9% per year).

The European Central Bank was created to control the Euro, now the most used unit of currency in the world. There are mandates to control inflation; however, these mandates are ineffective and inflation is a growing concern in countries that depend on the Euro.

There is little control on the EU’s bank. As inflation rises, so does the price of everything. All of Europe suffers together, not for the first time in history.

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