Bloomberg: Denmark Should Cut Loose From Euro

[ingemann]

http://www.bloombergview.com/articles/2015-01-20/denmark-should-cut-loose-from-euro

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[ingemann]

This is a good example of a case where the entire establishment agrees on something idiotic and it has become a dogma - "we have done it since 1982, so it must be right". I see little chance of common sense prevailing.

It's complex, there's benefits and problems with both.

Keeping the status quo, will improve our productivity, while the Euro falls, it will also keep a high export going.

Cutting the Krone loose on the other hand, will more or less remove our foreign debts overnight, it will increase inflation (which is a good thing) and likely cause a consumer boom. But it will also lower our productivity, weaken our export and risk creating a new bubble.

So staus quo is safe, while cutting the Krone loose is risky, but could give large rewards.

[ingemann]

At this point, I'd support letting every country who wants leave the Euro, and make a real, serious monetary union (including an central bank with a full mandate to promote growth, fiscal harmonization, and a mutualization of interest rates) with the countries that want it. Then we'll see who is serious about European federalism and who isn't.

I hate to tell you this, France are not going to dictate how the Euro will look in the future, unless France decide it want a monetary union with itself, Italy, Iberia and Greece.

[ingemann]

Ingemann dislikes France for some reason and seems always to be looking for French arrogance or delusions of grandeur in every post made by a French poster.

I have nothing against modern France or Antonio (who while I often disagree with him, think his presence on this board improve it and he's a general likable person). But I have a problem with people thinking that good policies for EU are policies who benefit ones own country and that other people are against it are anti-federalists. Yes the Euro in the existing form have to large extent benefitted the economies focusing on export, but it's not good for EU or its members if countries with BOP surplus are penaltised, which his suggestion would result in.