Zeev,
I respect your view point.
Having said that,
I think that the EURO will eventually plunge Europe into a
big malaise.
Mark my words: this will NOT happen. What will happen is British pound will be pounded by euro first. And then US dollar will slowly lose its power.
Forget CB, Asian private companies have started to sell dollar to buy euro. This momentum will continue to grow in 1999.
Let's briefly look back last 100 years. Europe was the powerhouse at the turn of the century, that power (or wind) shifted to North America after WW II(The wind has always been moving toward west) then from 70's upto now it was Asia's turn. Starting with Japan, Korea, Taiwan, China... Now that same wind is heading back to Europe, where it has started. I don't see this wind to change its direction.
About taxation... as with US, they can change the tax code over night. I think the change is inevitable... we'll see.
The euro will actually change European's socialistic taste. Each member has to strictly limit its government spendings; they are not allowed to overspend from their budgets (unlike U.S.) We will have to pay our debts soon or later. US is the biggest debtor country in the world. The same principle applies to all, whether you are an individual, a company or a country.
Sorry, my writing is not so eloquent nor humble.
hmmm.... come to think of it, maybe I should get into currency future. Buy some euro and sell pound and greenback. |
