Wednesday, December 7, 2011

Breaking up is easy

15 minutes to madness © fintag

News comments:
Following my recent concerns on which currency my newco should be based in, I read on that a couple of academics say it is a no brainer.

A simple novation agreement attached to all existing contracts is required.

1971. Decimal Day. The UK converted from the old complicated Charles Dickens sterling into a proper French metric based system currency which we have today. New Zealand, Australia, Argentina, Germany and many more have switched from one currency to another over the years including of course all the Eurozone countries.

Apparently you print new notes and coins, tell the world you have a new currency and issue it at parity with the old, put in a timetable that allows the new currency to float within a certain period and away you go. You could do it the next day.

The Eurozone could do the same thing. Euro A and Euro B (fintag).

So all this talk about disaster is wrong. The real reason the Euro continues is because the poor (all countries except Germany) take from the rich (Germany) and the rich exploit the poor.

Of course the Euro could survive if it became united. The USA is a currency union with states that are countries like California and Texas. The UK is a currency union with states like London and Scotland and it survives.

But the Euro will not.

Today's shorts:
Privacy is over for rich people (telegraph)

Today's longs:
World to be saved later this week (bloomberg)

Australia booms and booms (marketwatch)

The word "rich" to be redefined as people who are not poor.