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Planning begins for a euro-free Europe

Planning begins for a euro-free Europe
Profile photo of Patrick Barron

From today’s Open Europe news summary:

In an interview with RTL, Dutch Finance Minister Jeroen Dijsselbloem admitted that the Dutch government looked at what would happen if plans to save the euro “didn’t succeed”. His predecessor Jan Kees de Jager added separately that the Netherlands had worked on the issue with Germany and that teams of experts looked at how the Guilder could be reintroduced.
Notice that the Dutch are consulting with Germany in planning for the demise of the euro. In my opinion the Dutch would not reintroduce the guilder; they would decide to become a deutsche mark country, as would many other European countries…perhaps all of Europe eventually. This would herald the beginning of the end of worldwide monetary inflation by central banks. If the US, Britain, China, and Japan did not stop debasing their currencies, demand to hold these currencies as central bank reserves would fall precipitously because international companies would want to settle their trades in the best currency available; i.e., the deutsche mark.
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Patrick Barron is a consultant to the banking industry. He teaches Austrian school economics at the University of Iowa and Bank Managemant Simulation for the Graduate School of Banking, University of Wisconsin. Visit his blog. Send him mail.

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