Why The Eurozone Was A Bad Idea Then And Now
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Why The Eurozone Was A Bad Idea Then, And Now…. (The Homogenization of Europe) By Tom Bryant December 9, 2011 I remember telling my colleagues back in the late 90’s when the Euro was in planning, that I really hated the idea and perceived it, in the simplest way, as a homogenization of Europe as we all knew at that time and loved. Let’s review the definition of homogenization: “Homogenization is intensive blending of mutually related substances or groups of mutually related substances to form a constant of different insoluble phases (sometimes with addition of surfactants) to obtain a suspension or emulsion.” (Source: Wikipedia ) To hearken back to the old days, I really enjoyed visiting European countries and experiencing things that were uniquely European, be those French, German, Austrian, Swiss, or other uniquely different cultures. Simply stated, when I visit Europe, I do not want to experience American things. I can stay at home in America for that experience. The same goes for issues of money and economics. I never minded the trip to the ATM machine to get my 50,000 lire on my trips to Italy, knowing two thirds of it would be spent on a nice café lunch. I also liked, even enjoyed, looking at BMW cars parked on sales lots in Austria that had price tags of 500,000 schillings. Sure, I had to do the math in my head, but so what, I know how to do math. Now, everything is in Euros, and so everything is following in the footsteps of the US dollar, which I can only suppose is what the powers in Brussels were going for all along….a challenge to the almighty dollar and all the assumed benefits of such. Oh, how right I was, and how wrong they were! As has been very painfully learned, uniformity in everything is not good. In the world of private enterprise, corporate silos are taught in business school as being bad, which is quite true. They hinder organizations from realizing their full potential in just about every dynamic possible. However, silos in macroeconomics are quite good, and frankly, very necessary, to prevent or at least suppress, domino effects when occurrences like the financial collapse of 2008 happen. So, let me say very clearly….Europeans should embrace their individual silo cultures and economies, and value and protect them. Abandon the Euro!
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Transcript of Why The Eurozone Was A Bad Idea Then And Now
Why The Eurozone Was A Bad Idea Then, And Now….(The Homogenization of Europe)
By Tom BryantDecember 9, 2011
I remember telling my colleagues back in the late 90’s when the Euro was inplanning, that I really hated the idea and perceived it, in the simplest way, as ahomogenization of Europe as we all knew at that time and loved. Let’s review thedefinition of homogenization:
“Homogenization is intensive blending of mutually related substances orgroups of mutually related substances to form a constant of differentinsoluble phases (sometimes with addition of surfactants) to obtain asuspension or emulsion.” (Source: Wikipedia)
To hearken back to the old days, I really enjoyed visiting European countries andexperiencing things that were uniquely European, be those French, German,Austrian, Swiss, or other uniquely different cultures. Simply stated, when I visitEurope, I do not want to experience American things. I can stay at home inAmerica for that experience. The same goes for issues of money andeconomics.
I never minded the trip to the ATM machine to get my 50,000 lire on my trips toItaly, knowing two thirds of it would be spent on a nice café lunch. I also liked,even enjoyed, looking at BMW cars parked on sales lots in Austria that had pricetags of 500,000 schillings. Sure, I had to do the math in my head, but so what, Iknow how to do math.
Now, everything is in Euros, and so everything is following in the footsteps of theUS dollar, which I can only suppose is what the powers in Brussels were goingfor all along….a challenge to the almighty dollar and all the assumed benefits ofsuch. Oh, how right I was, and how wrong they were!
As has been very painfully learned, uniformity in everything is not good. In theworld of private enterprise, corporate silos are taught in business school as beingbad, which is quite true. They hinder organizations from realizing their fullpotential in just about every dynamic possible. However, silos inmacroeconomics are quite good, and frankly, very necessary, to prevent or atleast suppress, domino effects when occurrences like the financial collapse of2008 happen. So, let me say very clearly….Europeans should embrace theirindividual silo cultures and economies, and value and protect them. Abandon theEuro!
Consider this, the impact of the financial collapse on private enterprise andgovernment would not have been so pronounced if the countries of Europe wereas they always had been, contained in cultural and economic silos. Post 2002,however, their currencies in this case, had been “homogenized” and tiedtogether, sealing all of their fates in a lose one, lose all spiraling downfall. Thisallowed the recklessness of the idiotic choices being made in the US system todomino over to the Euro, and immediately infect the whole of the Eurozone.
Now, the experts in Europe are trying to homogenize even more by implementinga treaty driven requirement to usurp individual government budget decisions ofeach Eurozone member state. If I were a citizen of Germany, or France, or anyother Eurozone country, I would vehemently oppose this initiative. This onlymeans a future filled with more domino effect collapses that will be even moresevere, as will surely occur in any economy. Where is the wisdom? What arethey thinking?!!!
I can only offer this piece of advice and critique to the Europeans: Please givethe world back the Europe we all knew once…….divided, but oh so lovely andenjoyable.
-TB
