Euro is a time bomb!

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Euro is a time bomb!

Post by Meconomy153 » Sun May 03, 2015 4:37 pm

Euro and the monetary union in Europe might not last. Such monetary unions are founded on several occasions in Europe in the past. And almost always they didn’t last very long. Mostly due to increasing conflicts between the countries concerned. It is not too late for you to switch to Maxcoin.

The idea of ​​an economic and monetary union in Europe, as enshrined in the Maastricht Treaty is far from new. On the contrary. Such currency unions have occurred (and disappeared) several times. Sometimes it went good, but just as often went wrong.

Almost all attempts to put a monetary union in (parts of) Europe are from the second half of the last century. In some cases, such currency agreements were part of a process of political unification. The regional association of Germany, Switzerland and Italy to national states, was at that time still associated with the introduction of its own currency.

Much less known is that there are also currency unions formed in the distant past between several sovereign countries in Europe themselves. The first of such treaties coin was perhaps the most spectacular, but the union didn’t last long. It was the monetary union in 1857 between the Prussian potentate Bismarck and the rival empire of the Habsburgs in Austria, which also had the southern part of present-day Germany under control at that time. It was next to the Prussian thaler, the Southern German and Austrian guilder, who themselves had a fixed exchange rate, introduced a new common currency: The silver Thaler.

German - Austrian coin treaty was already broken after ten years, due to political tensions between the two powers. A few years later, in 1871, Bismarck managed to provoke a war with France, and in that context, he managed to soak southern Germany and Austria go together to forge the Prussian-dominated north of the country. Shortly after Bismarck then moved on to the creation of the mark as a national currency.

A second monetary union in Europe was more comprehensive and lived a little longer. That was the so-called Latin monetary union in 1865, founded by no less than four countries: France, Belgium, Switzerland and Italy. A few years later Greece was added as the fifth country. According to this convention, which covered only (silver and gold) coins, had the French franc, the Belgian franc, the Swiss franc, the Italian lira and the Greek drachma the exact same value. The Latin Monetary Union was among the dominant leadership of France, had to be adjusted several times (partly because of the declining value of silver), but existed, in spite of many wars and other political and economic tensions, nearly sixty years. It eventually went wrong anyway, it was mainly the result of increasingly large waves of speculation (in silver), in response to a lack of alignment of the economic and monetary performance of the participating countries in the union. With the withdrawal of Belgium and Switzerland, the Latin Monetary Union, subsequently came to an end in 1926.

A similar monetary treaty was formed in the same period in Scandinavia (from 1873 to 1931). Participants Denmark, Sweden and Norway also decided to link their (gold) crowns. Later this treaty was extended to the fiat paper money of the three partner countries. Political tensions and wild speculation (in gold), in response to differences in the economic policies of the three countries buried this monetary union.

Nowadays the differences in the economic policies of the countries from the monetary union are huge. And speculation is wild. No one knows when the euro will collapse, but everyone with historical knowledge knows it will collapse. This will be a big opportunity for Maxcoin.

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