Monday 9 January 2012

forex or laissez-faire is everywhere

Money, a little bit or a lot, needs rules and regulations to help guide it to the right and best exchange. After all, it is only a tool and sometimes a bit of a cushion in more turbulent times. Without intervention, I don't think that these systems of systems, self-creating and something that no one can get his or her head around, work themselves out--favourably to anyone concerned and only biased towards the chaos which is more of a natural state than illusory sophistication. The eurozone is certainly not willing to risk the autonomy of outlaw markets, and although I cannot be too sure about the purity of every motive and whether or not austerity measures are a way of respecting money as a means and not as an end, the recent downward trend of the currency (EN/DE), and it is not such a dramatic or worrisome change--in fact, it can stimulate Europe's export market by making its goods cheaper, is not being spurred on by the weak performance of any member economies. It is rather just a natural consequence of binding those members in a situation where they cannot create a differential for competition, outside the union and amongst themselves, by devaluing their own currency. Asceticism or the threat thereof is not a healthy engine for market-rivalry, but wage deflation and general job angst is driving something (so too with the spread of interests levied against weak economies versus more secure ones, and what’s being put up for collateral) that is yet to be seen if it appreciates. The inability of individual members to revise downward is causing the whole of the eurozone to slip in relation to other currencies.