The grand currency experiment
Ever since the European currency was introduced it was meant to be irreversible. This one way character of the Euro was suppose to render strength to the system, and show the world that it was not a economic playground or an experiment.
No country would be allowed to default either. Thus buying government bonds from each other was a very good investment, no matter how bad the economic situation in a certain country had become.
However, economists outside Europe questioned the system and asked for a reversal mechanism, an ordered plan for exit. This was never considered by the EU politicians. The Euro was here to sty forever and ever.
As the Euro-crisis constantly grew and got more and more infectious, soon half of the European nations affected, the question of organized exit should rise among the member states.
To quick start a currency in a middle of a crisis – when banks are out of money, and political pressure increases from Brussels – is not a good idea. Preparations should have been made in advance.
The Euro is in fact an experiment. Have you ever seen a currency operated by several governments, several national banks, several ideas of financial politics, without common taxation systems, and a common risk sharing system? Probably not. Because as far as I know, this have never been done.
The safe and sound response to the everlasting Euro-crisis would be to firstly re-create the national currency in digital form, and let it exist parallel to the Euro. When it stabilize it may be utilized as electronic currency, and later on printed; two currencies existing at one time. And then when the local currency seems to works fine in every way – then the common currency may be set aside.
Every sound government that don´t want their citizens to become white mice in a grand currency experiment should bare this in mind. And it does not matter if we like the idea of a common currency, if we like the EU, regardless of our feelings – we should be practical.
/Robert Toth
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