The Euro Economy

[Alain_Lalonde 0]

In many cases, especially outside the bounds of Resources, and Monetary Systems the Economy is a hindsight. Yet I wrote some articles back in 1998 and got aggressive mail back from certain large main stream media: I wonder what they think now about:The Euro Hammer



The day which the European countries decided to get
together, and make a union out of their great nations has been
quite the change. For ever and forever is a long time, they have
been at each others throats as vying competitors for regional and
pan European superiority and hegemony. Now since the modern age, it
as been possible, and after two world wars as a result of their
dignity, perhaps lessons have been learned. The Euro pan community.

Illusions need not be made concerning the Euro. A monetary unity is
only as good as the policy behind it. But I have no doubt the
Europeans can find the people who are able to steer it in the right
directions. Would it not be an interesting observation to make
however, that since its inception, they have indeed seemingly missed
a step, by letting it drop from beyond the scope they wanted its
range in respect to its value vis a vis the American Dollar. So
much so that The Japanese have had to intervene by buying into it
and sell off American values to prop it up.

The Euro has however, only been in existence for a short
time. A few months of life is no time at all to see what can be a
expected from a new progeny. It would not be any stretch of
conclusion to think they are watching to see what other nations
policies will be, and also, what actions would be taken if it were
to fluctuate in various respects.

It would certainly not be the goal as they and everyone say,
to let it become anterior to the value of the Dollar; superior
neither for superiority promulgates trade protectionist measures ,
and mefeance. They would like it to be at an even par or slightly
better than the American dollar. And it would make perfect sense.
Having this accomplished, they will be able to utilize its
stability rendering effect for practices of trade as the Europeans
are always a great hub, between the West and the East. It will in
essence help to shape the changing of European trading practices,
and approaches. Profiling from this, great strides could be made to
expand relationships with Eastern developing nations including
perhaps Africa. This would benefit the regions concerned along with
Europe itself.

Now however, we enter a new stage. A good indication of
the practice they will employ to rectify the Euros position is the
present day situation in the European community. Although what
happens on the the international scene is secondary, it will always
be an interest to Europe's proud nations. Perhaps they will indeed,
finally become less reliant on the United States Of America. But of
Primary issue is the cause of trades and domestic economies. Indeed,
they will not be able to follow through with the vision of a better
stronger Europe when both the European union whose reliant greatly
on its principal project the Euro fail to be realized. It will thus
be a necessity to build the Euro to the place where it was first
envisioned at its inception.

We have to remember that it was not a prognoses of the value
it would hold; it was in fact a mark to set from which it would be
of value to the world markets, and then the markets themselves.
This is now a priority. We can expect that in the week or two
ahead, there will be a tightening up on trading approaches, which
will send a signal to the rest of the world that the Euro is a sound
investment. This in turn will say the same of the countries who
espouse the euro as their currency. On top of being a necessity for
its success, it also has to be a source of desire for the United
Kingdom, which as yet has to adopt it as their currency.

Needless to say, the American dollar will be caught in a
bind, which will force the federal bank in the United States of
America, to increase interest rates, to offset the demand placed
upon the yen to buy American dollars to keep the Euro from assailing
it on both sides.

For the present, the managing of the Euro is not too much
far sweeping change, but later we will start to see the effects of
greater influence. Due to its stabilizing effect. The Europeans
will be able to venture into areas of finance and investment, which
they were not able to as individual units. This will open doors
unheretofore opened in the Asian markets. If, this were to
coincide with the rebounding economies in Asia, then it could spell
great competition for American interests in the region.

The competition could become fierce, and furious, and fast
paced. If, on the other hand it does not coincide with a rebound
of Asian economies it will necessitate the modifications and
different remedies. One such remedy could be stages of assistance
and policies of favor for developing countries. The Europeans would
see that even if Americans find it difficult to freely invest as
before in Asia (due to the lack of regulation) it would be good for
them to create liquidity for investment to be possible. Under
proper management and adjustment, it could in turn even send the
Euro considerably stronger in relation to the American dollar. Then
the Americans would have to buckle down which means lower interest
rates to minimize trade losses and increase investment at home.
This could hasten any protectionist views which are bound to come as
it did in the booming 80s. That was when the U.S. saw great trade
deficits with Japan.
Compared to then, the U.S. will have to deal with a slew of
other Asian countries not just one. Isolationism in that case would
in deed and practice, be wise.

Notice from jlhaslip:

Previously posted material needs quote tags, whether your original work or not.
http://www.angelfire.com/zine2/modernmagazine/july2.html

[arnz 0]

Reading only part of the article, seems the Euro has gone strength to strength since they united the currencies of many European nations not that long ago.