27 March 2013

There is No Medicine for Stupidity

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Much better than the Euro Zone

Because their currency floated
Paul Krugman has noted that Poland has done remarkably well by retaining its own currency and allowing it to float, (see chart pr0n).

Of course, the response of the Polish leaders is to try to join the Euro:
Donald Tusk, Poland’s prime minister, took a big political gamble on Tuesday when he opened the door to a referendum on joining the euro, in the face of strong public opposition to the common currency.

The move is part of a campaign to prepared Poland to begin the final stages of accession to the single currency by 2015. Mr Tusk had previously opposed a public vote, arguing that Poles had already bound themselves to the euro when they voted in 2003 to join the EU.

The crisis in the eurozone has hit support for the euro – the latest opinion survey shows 62 per cent of Poles are opposed to joining, with scepticism increasing markedly since the financial and debt crises hit Europe five years ago.

But now Mr Tusk has publicly raised the possibility of allowing a referendum – demanded by rightwing opposition parties opposed to euro membership – in return for an agreement with the opposition to push through the necessary constitutional changes.
Seriously, they want a piece of this?

You see, what happened was that instead of creating inflation, the wild capital flows caused the Zloty to appreciate, and when those flows reversed, the currency depreciated.

In the Euro zone, what happens is inflation, and then the need for depression to contract the economy. Wanting to be a part of this is stupid and insane.

Seriously, we need higher quality elites running the world.


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