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About time for an internal Euro currency trade?

“Euro B”: For internal trades?

Most population or demographics of the Northern European States such as Germany, Holland, Danmark, Sweden, and Norway are on average much older than the Southern States such as Spain, Portugal, Italy, Ireland, and Greece.

For example, the average age in Germany is 45 and thus, Germany spends less for new housing and can save much more than the younger States.

States experiencing high deficits in budget and in GNP need plenty of credit to get its young citizens settled down.

The smaller or emerging States in the EU are suffering from another major handicap.

In the previous decade, these States received plenty of financial funding from the richer States in the EU and thus, most of the young people quit colleges and universities in order to work in a booming economy and to make money and purchase consumerism products that their families never owned or experienced.

Statistics show that 80% of the newer entrepreneurs in Spain and Portugal have not earned a college degree: they have restricted and limited skills to compete in this global economic environment.  An entire generation was lost to shoulder the next challenges.

The problems of the Euro currency and the economy of European Union (EU) States had begun before the latest financial crash, but this financial upheaval uncovered problems that were swept under carpets for as long as the illusion of global economic development was not that evident.

The European common market is a vast market of 450 million consumers, as large as the combined USA and Russia markets.

If the EU policies focus on internal trades among its States then, most of the difficulties would be far more bearable in this climate of stringent conditions to slow down deficits in budget and to GNP.

The EU needs to consider issuing a currency valid for its internal trades that is heavily devalued compared to the inflated current Euro.

This inner currency may be called “Euro B” which will have the consequences of lowering the cost of living compared to reductions in salaries and public reduction in sectors of health, education, family planning, and small business lending facilities.

The other consequence is that tourism will increase and tourists will be able to purchase more consumerism goods as product prices effectively fall.

Another additional remedy that may keep internal trades developing smoothly is to allow hard hit States to ask for more liquidity of “Euro B” as internal trades increase and develop.

Obviously, Germany should keep the exclusive monopoly of issuing Euro, both Euro A and Euro B (a monopoly that generates over 5 billion Euros to Germany per year), but the mechanism for evaluating the needs for more Euro B liquidity should be more lenient and timely.

For example, the colonies in the US before independence experienced economic expansions while England was having hard times.  Benjamin Franklin, Ambassador to France after the US independence, let out the secret: Economic expansion was related to the colonies enjoying the right to “print” currency when the economy needed this “oiling” mechanism.

England then convinced the US government, after US independence, to have the monopoly of issuing US money instead of the US treasury.

The Rothschild family in England endeavored to ruin the US economic expansion by refraining from issuing badly needed currencies. The dollar received a higher value than being simply an oiling mechanism: thus, the dollar was overvalued and the economy shrank.

Actually, England military entered Washington DC in 1804 because Congress wanted Not to extend England monopoly for issuing US currency.

The “Euro A”, designed for external trades outside the EU, can still be devalued, but since export balances favor only export economies such as in Germany then, “Euro A” may be considered as a political currency that should not affect significantly internal trades in the European common market.

The Euro of the European Union (EU) currency or what I call “Euro A” is witnessing healthy devaluation lately compared to the dollar and needs to be lower to around 1.1 to the dollar.

The increasing difficulties experienced by many States in the EU result from initial weaker economies that could not compete efficiently in the European common market and then, were buffeted by the US financial crisis as financial multinationals extended credits Not based on tangible sound economic improvement.

As long as “Euro A” is overvalued and individual States have No sovereignty for issuing currency then, the smaller States will have no options but exercising internal devaluation of 20% represented in lower salaries and harsher budget cuts.

The European and international financial and political medias are breaking the taboo of discussing whether maintaining the Euro is a viable alternative in the short-term.

The arguments of the group that staunchly defends the Euro is mostly based on political reasons: To them it is becoming a matter of safeguarding dignity and sovereignty.  It believes that the Euro is the major factor in the reconstruction of the European market and for the political stability and the cohesion of the European market.

This group would like you to believe that without the Euro there would be No EU.

The “taboo breaker” group believes that the EU is in dire difficulty because it prematurely created a common currency before ironing out and strengthening common politics.

Germany and its satellites States in the northern hemisphere benefited most from the Euro since their currencies were highly overvalued “stronger” than the Euro and thus, they managed to compete better and export more to the European common market.

The other States in the Union could not deal with a Euro that was much overvalued compared to their national currencies and thus, had to suffer in market competition.

The financial and economic commotions in Greece, Ireland, Portugal, and Spain are symptoms of the financial and economic imbalance with respect to the vaster and stronger economies in Germany, France, and Italy.  This group believes that the EU is heading toward a deflationary period within a couple of years if no structural institutions are installed.

The main source of imbalance is that the original six States in the Union had firmer and better tested administrative and political institutions that could apply regulations agreed on. they had the capability to supervise and monitor laws and regulations governing the union members.

The weaker States are at great disadvantage: The main powerful States in the union have no confidence in the resilient determination of the weaker States to effectively execute the agreed upon regulations and

And second,  the weaker States are prohibited to issuing (printing money) to satisfy liquidity in their internal trade and commerce.

It is not the Euro that created the common European market: the EU was already instituted and functioning well before the common currency was created on political grounds.

The Euro was mainly to be the material “symbol” of the Union and this symbol degenerated into a calamity at the first major problem.  The EU could have imagined much less costly symbols for its unification until political coherence was firmly established, tested, and thoroughly evaluated.

The Maastricht treaty set limits to budget deficit below 3% and public deficit below 60%.

Currently, only Spain has kept its public debt at 54% and Germany its budget debt at 3.3%.

The remaining States in the Euro have doubled and even tripled both limits. Joblessness is very bad all over the Euro zone averaging 10%; Spain has 20% and Ireland and Greece about 14%.

It seems to me that the Euro has encourage many mafia type “economies” to expand simply because it became much easier to transfer a unique currency and circumventing further money exchange regulations and constraints.  The “Euro A” will be a good barrier for whitewashing mafia money outside the EU.

The financial institutions and the medias are sending waves of terrors claiming that there is lack of confidence in the Euro: they claim that this confidence is so low that investors are shirking the Euro zone States.

I believe that the Euro should stay but be restricted to the main large economies such as Germany, France, Italy, Spain, Holland, Danmark, and Norway where the same homogeneous spirit for taking seriously the application of financial and economic regulations among the member States.

The other weaker States should have an alternative common currency or “Euro B”, far devalued from the Euro and backed by the “Euro A”, until political coherence and institutions are equalized in efficiency and modernity.

The weaker states should enjoy the privilege of preempting slow internal trade by issuing liquidity in the newer common currency within limits.

For when the Near East Levant Union States? Economically, financially and trade?

Note 1: Re-edit of “Near East: Levant Union States (LUS)?” that I posted more than 15 years ago

Note 2: This union totally exclude the implanted colonial entity Israel, which is our existential enemy.

Levant (Rising sun with respect to Europe) is the name given by the French mandated power to the Near East independent States of Syria, Lebanon, Jordan, and Palestine.  Many prefer to include Iraq since it is the vastest trade market for the adjacent States that the colonial powers divided after WWI.

The current total population of the Levant is about 35 millions (excluding Iraq), or less than half each of Turkey, Iran, or the third of Egypt and about the number in Iraq, and the Arabian Peninsula (all bordering the Levant region).

Thus, focusing on internal trades among the Near East States will not make a serious dent toward expanding economic development in the short-term, but that is the best economic strategy for establishing a complementary economy that satisfy internal needs.

At least 70% of the land of this union is mostly desert and its total area is barely the third of France, but it is relatively rich in water compared to the neighboring larger States with the exception of Turkey.

The advantages of a policy of opening up the borders among these States for trades and easy communication are enormous.

For one thing, an economic coordination of the Levantine States can negotiate better deals with the bordering larger States by constituting a larger common market that may ease up the frequent tensions and anxiety that the people have been experiencing a century ago since the colonial powers did their best to divide our social fabrics.

A few guidelines may go a long way toward a project of common market.

First, it is inevitable that all borders among the Near East States be definitely demarcated, resolved, and registered in the United Nation.  This first step will eliminate foreign interventions in our internal affairs and appease unfounded fears of forced or implicit annexation.

Second, The Levant Union States (LUS) should drop all territorial claims with the neighboring States (except with Israel) that do not agree with the UN drawings.

Third, the LUS needs to institute a restricted Parliament that deal with the most urgent laws applicable to the union.  The prime areas for legislations are: Water resources, agriculture and industrial production coordination,  financial coordination, infrastructure, education, military, and energy resources.

Fourth, the establishment of a unified internal currency for internal trades among the States and leaving the States independent national currencies for external trades.  Thus, the central banks in each State will set aside reserves for the internal united currency to cover up any internal difficulties for conversion into particular “national” currencies as the internal market expand.

Fifth:  The institution of a central bank for managing and administering the internal currency to satisfy the growing internal trade.

Sixth, establishment of standards for armed forces and internal forces in the eventual coordination for securing the borders of the LUS.

Seventh, establishment of standards for public schooling systems in order to facilitate transfers of students among the States. It is essential that uniformed textbooks in geography of the region, its common history, and the various civic educational systems be introduced to all citizens.

Eight, establishing “Free trade zones” with neighboring States.  For example, one in Iskandaron (Alexandretta) between Turkey and Syria on the coast, one at the junction among Turkey, Iraq, and Syria (in the Kurdish populated zone), one between Syria and Iraq in the desert region on the Euphrates River, one among Jordan, Syria and Iraq, one in Gaza between Egypt and Palestine, and one in Aqaba between Jordan and Saudi-Arabia.

Nine:  Having coordinated foreign political positions with respect to the UN assembly.

Tenth, setting up a high political command in charge of negotiating any peace treaty with Israel as a Union of common interests.  The piece meal negotiation process with this antiquated vassal mentalities is not going to insure any lasting peace.

Note: This post is an ongoing process and will be frequently edited for more details.  Your focused comments will enrich the re-editing process.


adonis49

adonis49

adonis49

July 2021
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