I agree. The ECB DICTATES monetary policy and economic policy not allowing for individual countries to craft economic policy based on their own needs. Some of the countries that are members of the EU have been around for a thousand years with their own history, social norms and citizen expectations. To have the ECB dictate how they run their economy is ludicrous.In the simplest terms In the USA tt would be like the Federal Reserve, which is an arm of the speculators on Wall St, determining how each state should be run. A formula for disaster in my opinion. The common trading block of the EU was a good idea BUT the ECB was not.
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Both the NAFTA & USMCA trade agreements were/are okay & neccessary for countries to participate in the global market. Especially since the participates are on the same continent. But to suggest a plan where all 3 countries would have the same central bank controlling 1 single interest rate would be one of the stupidest things ever. After scenarios of member nations having high & hyperinflation like with Greece a few years ago with nearly no way to offset it because of the locked, continental interest rate I’m surprised the EU didn’t try to fix their system. I think the reason they didn’t & won’t is because the billionaires, bureaucrats, oligarchs & behind the sceen villains that control the EU don’t want to give back any of the power they annexed from member nations over the last few decades. The Norwegians were smart to want to trade with European nations but not stupid enough to hand over the keys & title to the stores by joining the EU.
This is incorrect on many levels. Have the ECB dictate how they run their economy? Greece would have been better off if they had, and once they were loaned money surely their creditors deserved a say to get the commons’ money back regardless of the great history and culture of Greece.
The world economy determines how individual countries economic policies matter already, building blocs like the EU or the US create giants whose economic policy can benefit the whole, indeed that is what it is intended for. Monetary policy helps that out by making stable currencies—useful for trade.
You think the Federal Reserve doesn’t effectually impact state economies? Never heard of bailouts that saved states that had poor savings and loan regulation? You see no relation between the cheapness of dearness of lending rates, taxes and state economies? There is.
Like The UK! (The U is for Union.)
Not for much longer if the Scots have their way.
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Uhmm,… I think you should do a Google search on that one. I’m pretty sure they dont call it the Union Kingdom.
They did in the 70’s when the Unions were all on strike!
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You’re right, I amend my remarks—now how dumb are they with their single currency monetary policy?
They also did in the beginning—it was a Union of Kingdoms, under the Acts of Union and has a Union Jack, but being excellent and picky grammarians—they properly referred to it as the United Kingdom (UK) (of all those places I’m not gonna screw up the full name.
EU is just a political and economic union with 27 members of a single market of people, goods, services and capital. The executive branch is the Commission with its commissioners. Then there is a Council with the head of states and/or prime ministers of the members to meet and discuss and finally there is a Parliament of elected EU citizens that makes the laws and decides the budget and the economic policy. There is also a Bank looking after the Euro currency that only 19 members use. The bank does not dictate union economic policy (it does the Parliament) but controls the monetary policy of the 19 members using the Euro in order to protect the Euro from attacks of all sorts. Greece should have followed that policy and not started lending money from foreign banks, etc, in the past destroying its own economy. There is also a European court to solve legal problems.
UK didn’t like the EU single market and left the union with a lot of unclear relations to sort out, e.g. the border between Ireland and GB/NI, EU citizens working in GB/NI, etc. Personally I like the EU as it has facilitated my work. EU has no common maritime policy. Each member does its own PSC and incident investigations of very variable quality, etc.
I know you are an extreme left leaning contrarian but what exactly are you aiming at? Are you suggesting the UK should disband & everyone should have their own central banks or that Canada, Mexico & the United States should have one central bank?
It really hurts my feeling that you choose base labeling and insults instead of addressing the legitimate complaints with your posts on economic theory, voting referendums and politics.
But I guess playing the victim is your thing despite your broad categorization of any opposition and their ‘ilk’ vice actually trying to make a reasoned thesis. so, please take my comment as an effort to simply point out that there is a fundamental incoherence in your suggestion of flaws in EU mechanisms that the UK shares internally, and allowing you to clarify what the distinction is and why it’s ‘dumb’.
You have no reason to feel hurt or insulted. I’ve been called a contrarian a few times & find it amusing. I never considered that term to be an insult & that wasn’t intention. Being a Librarian, I know I hold both extreme left & right opinions & don’t feel offended when I or others point out where those opinions fall on a political spectrum. I’m sure somewhere some politically correct intellectuals would use those words to insult one another but I’m not one of them.
The only times Mexico & the US have been united was very briefly after Mexico would lose a war with the US. The countries of Canada & the United States have never been united. These 3 countries are 3 distinct countries with 3 distinct populaces & proud histories. That is why it would be dumb to suggest 1 central bank should control the currency & monetary policies of all 3 countries IMO. The same could be argued for the some of member nations of the EU. But since the citizens of those countries wanted to join together then great for them. And if some change their minds & vote to leave then that is fine too. Democracy at work.
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Well sure, but what do you think of Dewey and his decimal system?
That had to happen, I just happened to be there…
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Hitler loved referendums which is why Germany banned them.
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You cant control currency value or interest rate.
Those are the 2 tools to balance your economy and when you are small and the other guy is big you are toast due to the trade imbalance. You are forced to borrow from the bigger guy.
Thats has trashed all smaller countrys with the euro via boom and bust and then long term debt.
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Lowering interests rates can devalue currency, making one stronger or weaker compared to other countries’ currencies which of course affects import/exports, though there are other factors. These can be manipulated so I don’t know what you mean when you say they can’t and it isn’t that relevant to the topic since the euro zone and UK are single currency, centrally managed.
the uk doesnt have the euro like 7 others out of 27
The other EU countries are stuck with a central fixed currency so they cant manipulate it to balance their fiscal positions to offset large trading partners hence the pain in the smaller countries.
The euro is a failure possibly only implemented to prevent the bankruptcy of one of the major members??
Italy converted at the wrong rate and has never recovered
Question is if N.I. will join the Republic (in some form or another) BEFORE Scotland break away from the Union and possibly joining EEA together with Norway, Iceland.and Lichtenstein initially (??)
Wales may also follow suite at some time.
If so, UK will be no more and England will be on it’s own.
What happen to the UKs position in the UN, NATO, WTO, Commonwealth etc. It is not a given that England will automatically inherit the UKs position.
Earlier I tried to inject some facts into the discussion about the EU, but it is obviously not much interest in facts.
Facts just gets in the way of believes and biases.
Trying again; EU has 27 members that has all had to apply for membership by their own free will.
Norway is associated with EU through it’s membership in EEA
Not all members adopted the Euro, or of the free travel Schengen agreement:
UK, Norway and Switzerland are NOT using Euro and UK was never member of the Schengen agreement.
Each country in the EU have their own central bank headed by an economist/bureaucrat appointed by each government
The are also a European Central Bank, headed by a person appointed by a majority of the European Parliament.
Not much different from the US system, where 50 States have the same currency under the management of a single Central bank (Federal Reserve)
PS> Try having 50 different US$ with different exchanges rate between them and with foreign currency.
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Britain leaving the EU? It’s like the Smiths down the block having a fight on the lawn, and him jumping in the station wagon and knocking over the trash can as he peels out, never to come back–again.
Big picture: Putin hates the EU and wants to see it destroyed. Reason enough for me to like it.
If I need any more reasons, I spend a couple of days in the WW2 museum in New Orleans.
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