Quote:
Originally Posted by Yoko Takeo
Correction: the Euro was first introduced to international financial markets on January 1, 1999 and the coins and banknotes were released on the same day in 2002.
In terms of competition against other larger financial powers, namely the US, it can be a good thing if those countries using the Euro were acting as one nation. The fact of the matter is that the Euro, and the European Union at that, were created was to imitate the US, but the truth is that this can never happen. Each country in Europe has its own history and culture, unlike in the US where the states have been part of a union for much of US history. They can't work well together as the US states do, and this recent crisis in Greece is proof enough. Despite the Euro's presence, each country still has its own individual economy. The theory you presented is correct, but as we can see, it didn't work like that in practice considering nothing much has changed for the EU member countries except for maybe Germany after the Euro was introduced after all.
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I need to stop drawing resources from my memory. It looks like it is failing.
The reason I guess why the other countries want to adopt the Euro is because they want to feed on Germany's growth, and thus the reason why the Euro failed : they did not contribute enough to the Euro's strength.
If a country is unable to back a currency by a gold system, it has to back it with something called productivity : basically a "my-dollar-is-worth-more-than-your-shit-paper-because-I-can-produce-more-and-better-stuff-than-you". A value is created if something is backed by something material. Then the material is backed by its quality, uniqueness of resource or both. The more stuff you add to it, be it the quality of the resource or workmanship, changes its value.
On a smaller note, that is how branding came about, until it was desensitised by the political style of marketing : comparing it to other brands and stating the useless points of what other brands cannot do and what yours can. It is kind of interesting that almost 90% of the people in this world bought that trick.