Euro Money Quotes

I would rather carry around a plastic bag with five thousand Euro inside, than carry around a Louis Vuitton/Gucci/Prada bag with only one hundred Euro inside!

Let's stop kidding ourselves that Greek debt is the Euro's key problem. With Greece gone, who's next ?

Over the last few years, banks and governments have been frenziedly printing money. Everybody is terrified that the current economic crisis may stop the growth of the economy. So they are creating trillions of dollars, euros and yen out of thin air, pumping cheap credit into the system, and hoping that the scientists, technicians and engineers will manage to come up with something really big,

Over the last few years, banks and governments have been frenziedly printing money. Everybody is terrified that the current economic crisis may stop the growth of the economy. So they are creating trillions of dollars, euros and yen out of thin air, pumping cheap credit into the system, and hoping that the scientists, technicians and engineers will manage to come up with something really big, before the bubble bursts. Everything

The euro and the ECB were designed in a way that blocks government money creation for any purpose other than to support the banks and bondholders. Their monetary and fiscal straitjacket obliges the eurozone economies to rely on bank creation of credit and debt. The financial sector takes over the role of economic planner, putting its technicians in charge of monetary and fiscal policy without democratic voice or referendums over debt and tax policies.

Over the last few years, banks and governments have been frenziedly printing money. Everybody is terrified that the current economic crisis may stop the growth of the economy. So they are creating trillions of dollars, euros and yen out of thin air, pumping cheap credit into the system, and hoping that the scientists, technicians and engineers will manage to come up with something really big, before the bubble bursts. Everything depends on the people in the labs.

How is forex traded? The main idea of forex is that you’re buying one currency and at the same time, selling another. Currencies are normally quoted in pairs, like EUR/USD or USD/SGD. The exchange rate represents the purchase price between the two currencies. In EUR/USD ratio, This represents the number of US Dollars in every Euro you have. If you think the Euro will increase in value against the US Dollar from the last exchange rate, you buy Euros with US Dollars and you cash in profit from that.

So I got to thinking that perhaps that’s what money is: a crystallization—or, rather, a homogenization—of time and free will into those things we call dollars and pounds and yen and euros. Money multiplies your time. It also expands your agency and broadens the number of things you can do accordingly. Big-time lottery winners haven’t won ten million dollars—they’ve won ten thousand person-years of time to do pretty much anything they want anywhere on Earth. Windfalls are like the crystal meth version of time and free will.

Left alone in a dark room with a pile of money, the Irish decided what they really wanted to do with it was buy Ireland. From each other. An Irish economist named Morgan Kelly, whose estimates of Irish bank losses have been the most prescient, has made a back-of-the-envelope calculation that puts the property-related losses of all Irish banks at roughly 106 billion euros. (Think $10.6 trillion.) At the rate money flows into the Irish treasury, Irish bank losses alone would absorb every penny of Irish taxes for the next four years.

What counts as money (and what doesn’t) is the result of choices we make, and those choices have a profound effect on who gets more stuff and who gets less, who gets to take risks when times are good, and who gets screwed when things go bad. Our choices about money gave us the world we live in now: the world where, when a pandemic hit in the spring of 2020, central banks could create trillions of dollars and euros and yen out of thin air in an effort to fight an economic collapse. In the future we’ll make different choices, and money will change again.

As I hurried along I was thinking how great it was to earn real money I don't have to ask my parents for. At last! I've worked out that I could probably handle as many as four dogs at a time. If I take them out just on school days I could earn 200 euros a week for five hours' work and have the weekends free to shop and spend it. It's going to be brilliant.I should have asked Stephanie what kind of dog it was. I eyeballed a Great Dane warily, my face about level with its. Bloody hell it was huge. Size of a pony. Wasn't sure whether I was expected to walk it or stick a saddle on its back and ride the thing.

Everybody is terrified that the current economic crisis may stop the growth of the economy. So they are creating trillions of dollars, euros and yen out of thin air, pumping cheap credit into the system, and hoping that the scientists, technicians and engineers will manage to come up with something really big, before the bubble bursts. Everything depends on the people in the labs. New discoveries in fields such as biotechnology and nanotechnology could create entire new industries, whose profits could back the trillions of make-believe money that the banks and governments have created since 2008. If the labs do not fulfil these expectations before the bubble bursts, we are heading towards very rough times. Columbus

One can even imagine that inflation tends to improve the relative position of the wealthiest individuals compared to the least wealthy, in that it enhances the importance of financial managers and intermediaries. A person with 10 or 50 million euros cannot afford the money managers that Harvard has but can nevertheless pay financial advisors and stockbrokers to mitigate the effects of inflation. By contrast, a person with only 10 or 50 thousand euros to invest will not be offered the same choices by her broker (if she has one): contacts with financial advisors are briefer, and many people in this category keep most of their savings in checking accounts that pay little or nothing and/or savings accounts that pay little more than the rate of inflation.

De Britse premier David Cameron, die ondertussen al ontslag heeft genomen, gaat straks de geschiedenis in als de kinkel die pokerde en verloor. De voorstanders van een brexit met een aantal racisten als voortrekkers (stijl Nigel Farage en Boris oh nson) hebben hun slag thuisgehaad waardoor het Verenigd Koninkrijk nooit nog kan terugkeren in de EU. De leuze "Storm is raging over het Channel, the continent is isoltated" heeft het gehaald. Het fiere Albion is teruggekeerd. Dat de Briiten Europa de rug toekeerden is al bij al verstaanbaar. De EU is een grijs en onaantrekkelijk Europa gedomineerd door bureaucraten en gekenmerkt door een groot democratisch deficit. Maar win werkelijkheid stemden de Britten over een heel ander pijnpunt, over de vreemdelingenkwestie. Misleid door alle leugens die de leavers schaamteloos voor waarheid verzwendelden. Het grootste nadeel van de exit is dat Europa nu niet langer nog kan dromen van een sterk Europees leger dan zich bewapent met Europese tuigen i.p.v. Amerikaanse, en dat het nu nog meer vastzit aan de Verenigde Staten voor zijn veiligheid. En als daar Donald Trump de presidentsverkiezingen wint dan wordt de wereld waarin wij leven op slag een flink stuk gevaarlijker dan die nu, met de islamfundamentalisten, al is. Ondertussen staan in het grijze Europa al andere racisten klaar - bijvoorbeeld Geert Wilders - om een exit uit Europa te eisen. De beurzen kleuren ondertussen bloedrood. Het Britse pond verloor 16 procent van zijn waarde. Wie à la baisse speculeerde op het pond heeft zijn inleg forst zien stijgen. Een oud klant van mij belde me zopas nog op dat hij 2,5 miljoen euro play money geriskeerd heeft en dat dit er nu 20,4 miljoen zijn geworden.

When examining the history of any human network, it is therefore advisable to stop from time to time and look at things from the perspective of some real entity. How do you know if an entity is real? Very simple – just ask yourself, ‘Can it suffer?’ When people burn down the temple of Zeus, Zeus doesn’t suffer. When the euro loses its value, the euro doesn’t suffer. When a bank goes bankrupt, the bank doesn’t suffer. When a country suffers a defeat in war, the country doesn’t really suffer. It’s just a metaphor. In contrast, when a soldier is wounded in battle, he really does suffer. When a famished peasant has nothing to eat, she suffers. When a cow is separated from her newborn calf, she suffers. This is reality. Of course suffering might well be caused by our belief in fictions. For example, belief in national and religious myths might cause the outbreak of war, in which millions lose their homes, their limbs and even their lives. The cause of war is fictional, but the suffering is 100 per cent real. This is exactly why we should strive to distinguish fiction from reality. Fiction isn’t bad. It is vital. Without commonly accepted stories about things like money, states or corporations, no complex human society can function. We can’t play football unless everyone believes in the same made-up rules, and we can’t enjoy the benefits of markets and courts without similar make-believe stories. But the stories are just tools. They should not become our goals or our yardsticks. When we forget that they are mere fiction, we lose touch with reality. Then we begin entire wars ‘to make a lot of money for the corporation’ or ‘to protect the national interest’. Corporations, money and nations exist only in our imagination. We invented them to serve us; how come we find ourselves sacrificing our lives in their service?

In 2008, employees at an office for the accounting firm Deloitte were troubled by the behavior of a new recruit. In the midst of a bustling work environment, she didn’t seem to be doing anything except sitting at an empty desk and staring into space. Whenever someone would ask what she was doing, she would reply that she was “doing thought work” or “working on [her] thesis.” Then there was the day that she spent riding the elevators up and down repeatedly. When a coworker saw this and asked if she was “thinking again,” she replied: “It helps to see things from a different perspective.”2 The employees became uneasy. Urgent inter-office emails were sent. It turned out that the staff had unwittingly taken part in a performance piece called The Trainee. The silent employee was Pilvi Takala, a Finnish artist who is known for videos in which she quietly threatens social norms with simple actions. In a piece called Bag Lady, for instance, she spent days roaming a mall in Berlin while carrying a clear plastic bag full of euro bills. Christy Lange describes the piece in Frieze: “While this obvious display of wealth should have made her the ‘perfect customer,’ she only aroused suspicion from security guards and disdain from shopkeepers. Others urged her to accept a more discreet bag for her money.”3 The Trainee epitomized Takala’s method. As observed by a writer at Pumphouse Gallery, which showed her work in 2017, there is nothing inherently unusual about the notion of not working while at work; people commonly look at Facebook on their phones or seek other distractions during work hours. It was the image of utter inactivity that so galled Takala’s colleagues. “Appearing as if you’re doing nothing is seen as a threat to the general working order of the company, creating a sense of the unknown,” they wrote, adding solemnly, “The potential of nothing is everything.

Because low deficits and low inflation were conditions of entry into the euro, many governments on the periphery had pushed in the 1990s to bring down deficits and inflation. As they did that, they were able to borrow money more and more cheaply. Once countries joined the euro, European bank regulators started treating bonds of all eurozone governments equally; according to the officials, Greek bonds were exactly as safe as German bonds.

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As some economists had said, the faith in money was the most prominent religion on Earth. The dollar or euro only had value because people believed it did.

At least Japan had sufficient domestic savings to fund its escalating national debt and printed its own currency. Europe’s stricken periphery wasn’t so fortunate. Take Draghi’s homeland. In the fifteen years since the start of the euro project, Italy enjoyed no increase in income per capita and labour costs climbed relative to Germany’s, rendering Italian exports uncompetitive. Italy’s public debt trailed only Japan’s and Greece’s. Italian banks were loaded down with hundreds of billions of euros of bad debts. Many of its largest businesses were certified zombies. Political sclerosis accompanied the economic version. The IMF warned that ‘in the absence of deeper structural reforms, medium-term growth is projected to remain low.’30 Without adequate economic growth, Italy’s sovereign debt problems and the Eurozone’s existential crisis remained unresolved. As in Japan, easy money bought time, but time was wasted.fn6

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- So what do you want me to do, Adam? I cannot be everywhere at the same time. I already have to be in three places at once, not just two. My Spanish is much better than it was half a year ago, but I am not native, Adam - I am not Catalan, I am not Spanish. - Alright, alright, alright. Jesus. - What do you mean, Boss Jesus? I am Tomas, the king of the Goys, not the Jews. - HAHAHA. Get serious now. This costs me money. - You’re kidding. You don’t even pay me a salary and my girlfriend is crazy about it. How do you want me to make over 10,000 Euros in net traffic a month if you are sending me to the same Estanco stores that never order and barely have any traffic, just wasting my time, Adam? - Mario made a lot of business with Estancos. - Bullshit, Boss. Mario, Mister Jerk Twister made monkey-business with a handful of Estancos. He sold a set of twelve crumble-cards with a free display in 2012 Spring and he never showed up again, they said. Was he even in Spain, Adam? - That’s not the point. - OK. So what is the point? - Mario made a lot of business. - Would you like to show me the total sum of wholesale figures Mario allegedly made in 2012, Boss? - No. - Because Mario didn’t make 10 000 Euros traffic in an entire year, Boss. Monkey-business. - You are spending 140 Euros on these two kids for the two catalogs and wasting time here with Rachel. - So do you want Rachel to stay here all night to laminate all this by herself, or may I help her so that we can give the catalogs to the two kids and we at least triple our potential tomorrow, so they can do sales, Adam, so they could go and visit all the Estancos as you wish? - Yeah, sure. - Thank you. Adam the tiny Estancos are seasonal and some of them don’t even keep our kinds of products they rely soley on tobacco sales, elder Catalan people. Clubs are opening at every corner, Adam and they need us to supply them with products. They won’t be so seasonal, they cannot rely on the tourism by law they cannot register walk-ins. - Cccc. They register anyone, what are you talking about? - No. Which club? - Club Alfalfa. The custom card client, Mario and Tom made in 2012. - Yeah, the marijuana club where there were two Police razzias both found cocaine twice behind the booth, so far. - But they are open again. Selling weed. - For how long Adam? How many times can they re-open after the Police had shut the club down twice already because of cocaine? How many members or employees they arrested, Adam? Would you bail me out if I go inside the wrong door one day, representing you?

- Can you keep secrets? - Yesss. - We are going to make one of the biggest coffeeshops in Barcelona with my boss, Adam. - Realllllly? - This Adam guy is kind of my friend and kind of my boss, but I don't trust him; he is a bad guy. “Bad to the bone.” His father is an even darker figure. I am pretty sure that both have killed before, hired to kill people. - I am from Buenos Airessss. - I understand honey but you don’t know this kind of people, these f…g desert roses. - There are Jewish people in Argentina too. - I am sure, baby, but these are not regular Jewish people, not regular Israeli people. These people are dark. Hocus-pocus. Criminal minds. Do you understand? - I guessss. - There are a lot of criminals in this town. They will try to take our club away, just like the Camorra is taking away other people's clubs. Just like that. Do you understand? - Yessss. - I know them; they are one of my clients. If there is anyone in the world who could make a deal with them, it would be me and Adam. He cannot cross me and I cannot cross him either. I would never do that. I am not sure about him though what is on his mind, I can tell there is something he is orchestrating I just don’t know what exactly, but he is as fishy as Sabrina. The problem is that only my ex-girlfriend knows about my signature on the non-profit organization, which is the base of the coffeeshop, the marijuana grow and the smoker club. Do you understand? - Yesssss. - We are talking about millions of Euros monthly cashflow. Do you understand? - Yesssss. - By telling you everything now, you are becoming my trusted; your life is in danger too if they manage to find a gap between us. Do you understand? - Yesssss. - I'm not sure what they're up to. They owe me already more money than anyone in this town would murder for. Do you understand? - Yesssss. - Now you know about it, too. Sabrina didn't care; she didn't think I would make it happen. She doesn’t know about the place. Only you know about it and us. But she will figure it out somehow; she will try to take your position, slipping between the criminals. Do you know how to play chess? - Not really. - OK then. Imagine this as a throne, these chairs you are sitting on top of. OK. No one can remove you from this throne being my girlfriend, no one can stand between us. No one can take the club away from us. They have no chance. Understand? - Yesss. - As long as you stick with me, she cannot do anything; no one can mess with us. Do you understand? - Yes. Everyone in the world would try to take your place, being my girlfriend, and they will try to push you out from this position, which only me I can give you, with Love. They will tell you lies about me and about themselves who’s club is it. Do you understand? - Yes. But why? - Because Rachel and Tom, the other two founding members of the club, Golan, I signed up with, are Adam's puppets. I don't trust any one of them. If they kill me, they never have to pay me what they owe me already, plus they can keep the 33% of the club which belongs to me. 100% Adam would keep. Do you understand now? - Yessss. - We will pull all the trash out and remodel the place without any permit, under the rug, in secret. - I sssseeee. (Eye. See.)

- Can you keep secrets? - Yesss. - We are going to make one of the biggest coffeeshops in Barcelona with my boss, Adam. - Realllllly? - This Adam guy is kind of my friend and kind of my boss, but I don't trust him; he is a bad guy. “Bad to the bone.” His father is an even darker figure. I am pretty sure that both have killed before, hired to kill people. - I am from Buenos Airessss. - I understand honey but you don’t know this kind of people, these f…g desert roses. - There are Jewish people in Argentina too. - I am sure, baby, but these are not regular Jewish people, not regular Israeli people. These people are dark. Hocus-pocus. Criminal minds. Do you understand? - I guessss. - There are a lot of criminals in this town. They will try to take our club away, just like the Camorra is taking away other people's clubs. Just like that. Do you understand? - Yessss. - I know them; they are one of my clients. If there is anyone in the world who could make a deal with them, it would be me and Adam. He cannot cross me and I cannot cross him either. I would never do that. I am not sure about him though what is on his mind, I can tell there is something he is orchestrating I just don’t know what exactly, but he is as fishy as Sabrina. The problem is that only my ex-girlfriend knows about my signature on the non-profit organization, which is the base of the coffeeshop, the marijuana grow and the smoker club. Do you understand? - Yesssss. - We are talking about millions of Euros monthly cashflow. Do you understand? - Yesssss. - By telling you everything now, you are becoming my trusted; your life is in danger too if they manage to find a gap between us. Do you understand? - Yesssss. - I'm not sure what they're up to. They owe me already more money than anyone in this town would murder for. Do you understand? - Yesssss. - Now you know about it, too. Sabrina didn't care; she didn't think I would make it happen. She doesn’t know about the place. Only you know about it and us. But she will figure it out somehow; she will try to take your position, slipping between the criminals. Do you know how to play chess? - Not really. - OK then. Imagine this as a throne, these chairs you are sitting on top of. OK. No one can remove you from this throne being my girlfriend, no one can stand between us. No one can take the club away from us. They have no chance. Understand? - Yesss. - As long as you stick with me, she cannot do anything; no one can mess with us. Do you understand? - Yesss. - Everyone in the world would try to take your place, being my girlfriend, and they will try to push you out from this position, which only me I can give you, with Love. They will tell you lies about me and about themselves who’s club is it. Do you understand? - Yes. But why? - Because Rachel and Tom, the other two founding members of the club, Golan, I signed up with, are Adam's puppets. I don't trust any one of them. If they kill me, they never have to pay me what they owe me already, plus they can keep the 33% of the club which belongs to me. 100% Adam would keep. Do you understand now? - Yessss. - We will pull all the trash out and remodel the place without any permit, under the rug, in secret. - I sssseeee. (Eye. See.)

Of course, Adam was still counting days the old way, as Sunday was the first day of the week, so he was misinforming me as to which day his father actually arrived in Spain, seemingly by accident, by mistake. Perhaps it was a mistake that Adam had confused the European calendar with the Israeli calendar from time to time; perhaps it was not a mistake. Ferran actually arrived the following day, Tuesday, according to the Gregorian calendar and not Monday, when we had all been preparing for his arrival with Martina in vain. I had wanted to introduce her to the old man nicely. However, Tuesday, when he was scheduled to arrive, Mario Larese - Mister Twister - showed up, banging the glass of the store-front door, echoing throughout the entire store and upstairs apartment, as if he was about to break the glass if I did not go down to open it. He was knocking on the plain, large glass of the door with either a lighter or with his metal ring; I don't know which, but it was terrible. I knew Ferran could arrive at any moment, so I told Martina it might be best if she went home to Paola and let me take care of the business. I couldn't ignore Mario, who was almost breaking the glass, seemingly because he had seen my scooter parked in front of the store. I opened the door and he started pushing his way inside, saying, “Let's smoke a joint and drink a coffee.” I replied, “Slow down, cowboy. I've got company, I'm expecting more company, and I just woke up. I have no time now; sorry, Mario.” He kept banging the door because he wanted to smoke somewhere early in the morning, and Canale Vuo was still closed. I was so tempted to slap him. Unintentionally, I let slip that I was expecting Ferran, which only increased his refusal to leave. Theatrical. Dramatic. He wasn't going to get out of my store, my way, my day, my life, my struggle, or my schedule. Meanwhile, the same time, Nico was bugging me on the phone to make sure I delivered a box of 1,000 cones for La Silla because they needed it to make pre-rolled joints for their smokers. They sold 2-3,000 pre-rolled joints a week, ordering two boxes weekly, thus making me waste my time for free. I started to think it had all been planned just to make me lose time every week. They sold 3,000 joints a week and yet couldn't afford more than two boxes of cones to purchase to keep up. Tuesday morning was so urgent for La Silla to get those 1,000 brown cones right then. Just for Nico's 5-euro commission and so he wouldn't be embarrassed in front of his friends at La Silla with his sales performance - no problem. I couldn't kick out Mario, and I didn't want to kick out Martina, who apparently didn't want to leave. I asked them to leave, but Mario was leaning on the kitchen table and unable to look up or turn toward me to meet my gaze. Martina was looking at me angrily. So, I told them both, “OK then, stay here; let the old man inside once he arrives. I have to deliver this box of cones to La Silla right away, but I will be right back. 20 minutes tops.” Adam had also failed to inform me that he had copied a set of keys for his dad at one point, and he had somehow sent them to Israel by mail, I guess. Martina did not need to stay in the store to let Ferran in, but I did not know that. Adam was always secretive and brief with his words, as if it cost him money to say words out of his mouth or dictate to Rachel what to write in an email or what he was supposed to tell me on the phone. I thought that Martina had to stay to let Ferran into the store in case he arrived just when I went to La Mesa to do a favor for Nico. I was on my way back to Urgell from La Silla, when Adam suddenly called me from Amsterdam, screaming on the phone.

„Dear Fernandamama, I need to borrow some quick cash from you, about 900 Euros to be honest. This f...g Adam guy’s fines arrived on my name. He is paying your children and drugging them, this f...g godless Israeli criminal, with his f...g junkie friends and family, influencing your children is not good for our health, Fernandamama. You know. The coffeeshop. On my name. This f...g Adam guy is the reason why Martina is gone and the f...g coffeeshop, huh? I should have killed him when I had the chances, what do you say, Fernanda? Your silence tells me odes, Fernandamama since weeks if not months. Meaning, you know better if I should have taken care of Adam on time and closed the club last summer when you came to visit „us.” I need to pay for these Zaragoza fines Adam collected for my name Fernanda. I need my money to give it away to the landlord so that Martina has a home. You know, without my coffeeshop on my name. I hope you understand. I pay you back just like the 6-800 you landed us earlier. If Martina allows me to contact you, if I wasn’t a ghost in Barcelona made believe. You know. Thanks. Cheers, Tomas

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They say that democracy cannot be adopted; it has to be adapted to the African way of thinking. What does that mean? That the all-powerful and corrupt political leaders should stay in power? That Teodoro Obiang, the President of Equatorial Guinea, should appropriate all the country’s money for himself, a country with income per capita of more than 20,000 euros thanks to oil but where people suffer hunger and poverty? Or that women should not have any rights?

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For some time now, Germany has had cruise ships visiting Cuba, such as the MS Deutschland, which can accommodate 513 passengers and has a crew of 260 members. She is known as das Traumschiff or the Dream Ship and is Germany’s television answer to the Love boat. With a displacement of 22,400 GT, the ship brought European tourists with their Euros as stimulus money to Cuba. However, on Monday, February 23, 2015, it was announced, that the operating company had declared bankruptcy. It was expected that finding new investors, and restructuring under the German debtor-in-possession management act, known as Eigenverwaltung, would allow the MS Deutschland to continue her scheduled visits. However, on July 27, 2015 with new owners it was announced that the ship would sail using two distinct names. For one part of the year the ship would be the MS World Odyssey having “Semesters at Sea” for students and for the other part of the year it would sail for the travel company Phoenix Reisen, using its regular name, the MS Deutschland.

Slava, working in concert with the philosophy of the nation that had taken them in—good works as the by-product of self-interest—was able to give the descendants at the table, the children and grandchildren, the gift of knowing, at last, the unknown corners of their forebears, all because the forebears stood to make money. How cheaply they fell—the heart’s greatest terrors for a bushel of euros. Slava wasn’t a judge: He was a middleman, a loan shark, an alchemist—he turned lies into facts, words into money, silence into knowledge at last.

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What made this spending possible was that having adopted the euro, Greece and the other European periphery states (Portugal, Italy, Spain, and Ireland) were effectively endowed with Germany’s credit rating on the assumption that the ECB would back all outstanding debt issued by member states since it was all in the “same” new euro currency. As such, the historically high borrowing costs of these countries fell. Greece’s borrowing costs, for example, fell from 20 percent on a ten-year bond before the introduction of the euro to around 4 percent in 2005, and in the case of Greece in particular, more borrowing was the result.24 Since Greece was able to borrow more easily, money became more plentiful locally, financing both consumption and investment. However, this also raised Greece’s labor costs relative to its Euro Area neighbors; its competitiveness fell, widening its current account deficit—Greece was importing more than it was exporting with the extra cash.

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Soros (2013) notes that the euro crisis has already transformed the EU from a free association of states enjoying equal rights to a more or less enduring relationship between debtors and creditors. The creditors risk losing a good deal of money if a member states leaves the union, while the debtors are forced to accept conditions which can only aggravate their economic depression, and place them in a subordinate position for an indefinite period of time. In this way the euro crisis threatens to destroy the EU itself. According to the American financier these are the consequences of the fatal flaw of the European monetary union: in creating the ECB as a fully independent central bank the member states indebted themselves in a currency which they cannot control. As a consequence, when the risk of a Greek default became concrete, the financial markets reacted by reducing the status of all heavily indebted members of the euro zone to that of developing countries with large debts in foreign currencies. In this way, these members of the euro zone were treated as if they alone were responsible for their present condition. The correct response to this situation, Soros concludes, would be the creation of Eurobonds and a banking union, together with the necessary structural reforms. However, Germany refuses to choose between the two alternatives: either accept the Eurobonds or leave the euro zone. On the other hand, a solution of the crisis would also require a level of centralization of the economic and fiscal policies of the member states that is, most likely, politically unfeasible. Thus the end of monetary union appears to be only a question of time, while the position of the major German parties – pro monetary union but against Eurobonds – is clearly contradictory.

euro denominated borrowing was akin to foreign currency debt in traditional sudden stop crises. The natural lender of last resort, the ECB, was explicitly forbidden from playing the role. This ruled out one of the classic ways out of avoiding government default – having the central bank print the money needed to service the debt. The predominance of bank financing was another amplifier of problems. European banks were thinly capitalised and extremely large relative to the countries’ GDP. They were so large that they had to be saved, but their size also created a ‘double drowning’ scenario. This is exactly what happened in Ireland. In what might be called a tragic double-drowning scenario, Ireland’s banking system went down first, and the government of Ireland went down trying to save it.

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Deleveraging and detoxing of financial excesses works better than not dealing with the imbalances and just printing more money to kick the can further down the road. Only painful restructuring helps cure the extreme disparities in trade, debt, and demographics in Europe (and everywhere else, for that matter, at any time in history). In short, I anticipate a major restructuring in the eurozone, along with weakness in the euro and strength in the dollar for a while yet. After that, it’s likely a more neutral currency game, with a bias toward the stronger countries. This means they’ll be able to attract more foreign investment and lower-cost imports, but their exports will decline as a result.

It was from him that I learnt of the modern-day Fagins of Italy, and how the more innocent Gypsies fell into their nets. (…) Instead of Germany, after a long journey in a van, they found themselves in the city of Salerno in southern Italy. There they were brought by their 'Boss' to the empty shell of an unfinished apartment block. Inside there were hundreds of Romanian beggars sleeping on rags and mattresses which had been salvaged from rubbish dumps. There were rats everywhere. (…) The next morning they were pushed out on to the streets to beg. Romi was in tears. But in his tearful state he earned good money, especially outside the churches. He pocketed over a hundred euros on the first day and in the evening he tried to conceal some of it from the 'Boss'.He was told to strip. They found the money and beat him. They beat Dumitru as well because he had earned only ten euros. (p. 286)

Can you move?" he says, pulling out five euros from his wallet. He holds the bill over my head. "Here, this should help." My fantasy evaporates like dry ice on a summer day in the hottest of deserts. I shoot him daggers with my eyes and swat the bill. He actually thinks I'm homeless? "I don't need money." "Could have fooled me," he says, his eyes making an unabashed loop over my outfit, and then pockets the bill. Under my breath, I mutter, "Quelle bite." What a dick. "I heard that," he says in English, his lips pressing together into a thin line. "Crazy tourist." "You speak English?" "Yes, and it's obviously more refined than your limited French." The lilt in his affected voice, the precise English accent that would normally have me drooling, echoes in my head when I snap to. How dare he? He crashes into me and then launches insults like grenades? Bye-bye, meet-cute, this prince in disguise is as ugly as a toadfish.

Thirdly, German bankers drooled over the large difference between the interest rate they could charge to German customers and the going interest rate in places like Greece. The chasm between the two was a direct repercussion of the trade imbalances. A large trade surplus means that cars and washing machines flow from the surplus to the deficit country, with cash flowing the opposite way. The surplus country becomes awash with “liquidity,” with cash accumulating in proportion to the net exports pouring into its trading partners. As the supply of cash increases within the surplus nation’s banks, in Frankfurt to be precise, it becomes more readily available and therefore cheaper to borrow. In other words, its price drops. And what is the price of money? The interest rate! Thus interest rates in Germany were remaining much lower than in Greece, Spain and their equivalents, where the outflow of cash (as the Greeks and the Spanish purchased more and more Volkswagens) maintained the price of euros in Europe’s south above its equivalent in Germany.3

The Case of the Swiss Franc. If a giant money supply was the cause of rising prices, you’d think Switzerland would be overwhelmed by hyperinflation. With a population of just less than nine million, that country has eight times more base money per capita than Canada, whose population is nearly four times the size at thirty-eight million. Instead, the Swiss franc has been one of the world’s most reliable currencies over the past hundred years, with less inflation than the US dollar, British pound, euro, or the preceding German mark. As a result of this track record, many people outside Switzerland are eager to hold assets denominated in Swiss francs. In other words, demand for the Swiss franc is high. To meet this expanding demand, and keep the currency from rising uncomfortably, the Swiss central bank has had to increase supply aggressively.

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