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Cure the illness not the symptoms |
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06 June 2011 |
Justin Urquhart Stewart is one of the most recognisable and trusted market commentators on television, radio, and in the press. Originally trained as a lawyer, he has observed the retail market industry for 20 years whilst at Barclays Stockbrokers and developed a unique understanding of the market's roles and benefits for the private investor.
Justin Urquhart Stewart is one of the most recognisable and trusted market commentators on television, radio, and in the press. Originally trained as a lawyer, he has observed the retail market industry for 20 years whilst at Barclays Stockbrokers and developed a unique understanding of the market's roles and benefits for the private investor. Justin provides financial advice to clients of Kester Cunningham John Financial Planning LLP.
I must return to the question of the future design of the Euro, if only to refresh my continued arguments and points over the past decade. Although certain areas of 'middle England' seem to regard this controversial currency as obviously being the evil spawn of Beelzebub, it has survived to date. However, it has more recently become common parlance to assume that this whole initiative is likely to have been an abject failure. Time will tell, but there have, despite some very obvious fundamental flaws, also been some tangible successes for this beleaguered currency.
Firstly we only have to look at the growth of the Eurozone economies themselves which quite recently showed a quite healthy overall view despite the obvious costs and failure of the peripheral economies. Whilst this is a positive, we should not let this become a modesty curtain to hide the economic dysfunction going on behind. Seventeen states with seventeen fiscal policies and seventeen finance ministers (with seventeen egos) and one central bank is a recipe for at least dysfunction, if not actual disaster.
The US for example has at least fifty economies and states, with a number of them as dysfunctional as any European peripheral, but it has a federal tax system and a single central bank |
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