{"id":42555,"date":"2019-01-11T06:33:19","date_gmt":"2019-01-11T11:33:19","guid":{"rendered":"https:\/\/olduvai.ca\/?p=42555"},"modified":"2019-01-11T06:37:24","modified_gmt":"2019-01-11T11:37:24","slug":"the-tragedy-of-the-euro","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=42555","title":{"rendered":"The Tragedy Of The Euro"},"content":{"rendered":"
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The Tragedy Of The Euro<\/a><\/h3>\n<\/div>\n<\/div>\n<\/section>\n
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After two decades, the euro\u2019s minders look set to drive the Eurozone into deep trouble. December was the last month of the ECB\u2019s monthly purchases of government debt. A softening global economy will increase government deficits unexpectedly. The consequence will be a new cycle of sharply rising bond yields for the weakest Eurozone members, and systemically destabilising losses in the bond portfolios owned by Eurozone banks<\/i><\/strong><\/p>\n

The blame-game<\/strong><\/p>\n

It\u2019s the twentieth anniversary of the euro\u2019s existence, and far from being celebrated it is being blamed for many, if not all of the Eurozone\u2019s ills.<\/p>\n

However, the euro cannot be blamed for the monetary and policy failures of the ECB, national central banks and politicians. It is just a fiat currency, like all the others, only with a different provenance. All fiat currencies owe their function as a medium of exchange from the faith its users have in it. But unlike other currencies in their respective jurisdictions, the euro has become a talisman for monetary and economic failures in the European Union.<\/p>\n

Recognise that, and we have a chance of understanding why the Eurozone has its troubles and why there are mounting risks of a new Eurozone systemic crisis. These troubles will not be resolved by replacing the euro with one of its founding components, or, indeed, a whole new fiat-money construct. It is here to stay, because it is not in the users\u2019 interest to ditch it.<\/p>\n

As is so often the case, the motivation for blaming the euro for some or all the Eurozone\u2019s troubles is to shift responsibility from the real culprits, which are the institutions that created and manage it. This article briefly summarises the key points in the history of the euro project and notes how the mistakes of the past are being repeated without the safety-net of the ECB\u2019s asset purchases.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Tragedy Of The Euro After two decades, the euro\u2019s minders look set to drive the Eurozone into deep trouble. December was the last month of the ECB\u2019s monthly purchases of government debt. A softening global economy will increase government deficits unexpectedly. The consequence will be a new cycle of sharply rising bond yields for […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7772,124,233,279,280,282,284,285,309,13061,379,1577],"class_list":["post-42555","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alasdair-macleod","tag-central-banks","tag-ecb","tag-eu","tag-euro","tag-european-central-bank","tag-european-union","tag-eurozone","tag-fiat-currency","tag-goldmoney-insights","tag-government","tag-politicians"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42555","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42555"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42555\/revisions"}],"predecessor-version":[{"id":42557,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42555\/revisions\/42557"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42555"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42555"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}