It’s as if there was never a world before the Euro. It’s as if countries inside the Eurozone never had currency of their own, never had the ability to value and manage their currency as they saw fit, and had political structures where decision making was domestic rather than outsourced to Brussels.
But anyone reading Failygraph and the dire warnings of Robert Chote, head of the Office of Budget Responsibility, could be forgiven for thinking anything prior to the creation of the single currency is pre-history. The Fail’s interpretation of Chote is designed to further the sense of panic and requirement to fill column inches:
Britain’s economy may suffer “permanent” damage and “never quite get back up” if the euro collapses in a chaotic way, the Government’s chief economic forecaster has said.
Reality is being replaced by theatrics. It never ceases to amaze me how this country manages to survive with so many defeatist idiots in positions of responsibility. A break up of the Euro would result in pain, probably for some years. There are banks that would fail and debts that would not be repaid. But the planet will continue to spin on its axis and orbit the sun. Countries would revert to currencies they can control, which would be more beneficial for them than the restrictive and skewed one-size-fits-none political tool that is the Euro.
Economic activity will continue as before. People will still need to buy food, goods and services and companies will continue to trade to provide those – paying taxes and employing people. Some economies may look and feel different, but to suggest ‘permanent’ damage could result is nothing short of ridiculous. There will still be the same markets in Europe that we will sell to today. Remember, if it were not for the same political motives behind the creation of the Euro we would be working in our own national interest to access markets elsewhere around the world and trade freely on our own terms without being constrained by the interests and wishes of other EU member states. If the Euro goes, so to might the bureaucracy that hamstrings us.
No doubt when the Great Depression took hold there were fearmongers like Chote saying economies would suffer ‘permanent’ damage. Yet we have seen huge growth and economic transformation since then. People adapt, people are entrepreneurial and opportunities are created and seized. The fearmongers are those who have an agenda and see it crumbling before their eyes. They are the ones who can only see their own vested interests in the intermediate, rather than the big picture in the long term.