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The Dollar King and His Page: The Euro – The Euro, an act of stupid pride


Guido Salerno Aletta

Teleborsa Agency column

The euro, an act of stupid pride

That’s iteuro it is a story, both ancient and recent, nailed with error. And there ECBCentral banks without history and without culture, at the top of a currency without a state, he will collect catastrophically, one after another.

We paid dearly for it for twenty years, because History still presents the bill.

The institution of the Euro was an extraordinary act, as well as stupid political pride. The common currency was intended to finally free Europe from the double tyranny: that of the dollar on one side and that of the Mark on the other.

Free yourself from the double tyranny of the dollar and the brand

We need to go back in time to understand the reasons for this risky decision.

still US monetary policy decisions have greatly influenced Europe as a whole: starting from that of ’71, unilaterally withdrawn from the pledge to convert its negative dollar balance into the gold trade balance. From that moment on, those who had an active trade balance with the United States could do nothing but diligently keep their paper dollars in their coffers: first, they handed over their paper dollars and received gold, according to reports. at $ 34 per ounce. . in up.

To make matters worse, in 1980to combat stagflation, The Fed has decided to raise interest rates at the stellar level: even in this case, the European financial system had to adapt to increase its rates, because a too wide gap between economies that were already very connected at the time was not sustainable: speculative capital let European currencies change into dollars, and invest. of that money. The rise in interest rates in Italy has had devastating consequences: Public debt has risen and large companies that have been making investment plans for several years depend on real negative interest rates closing their doors.

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As if the tyranny of dollarsalso frame maramaldizzava: in the late ’90s, when he decided to opt for the single currency during the informal Council of Rome, and the decision therefore to renounce each State in the perspective of its own national currency instead of turning into ownership money ta. must be added to these nationals as Britain demanded, there was a violent revaluation of the German brand underway, provoked by a decisive rise in interest rates by the Bundesbank which in this way encouraged European capital to invest in German currency which offer conditions. in the most favorable work. Germany, facing the delicate phase of reunification, was in desperate need of resources invested in Eastern Lander and sold the GDR’s large public property.

Therefore, not only did we have to defend ourselves altogether in Europe from the tyranny of the dollar, but in Europe itself we also had to defend ourselves from the tyranny of the brand.

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