10-01-2004, 10:17 AM
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Nice Kitty
Industry Role:
Join Date: Sep 2002
Location: The good old USA!!!
Posts: 21,053
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Quote:
Originally posted by mrskin
Ok first - there is no combined power of the EU. THe EU does not have a combined fiscal operation, a combined military operation a combined anything. It has a mumbo jumbo of everyone doing a little bit of their own thing and sharing a little bit of everyone elses stuff to do some joint things.
That dosnt work well when you need the EU as a whole to move in one direction as they tend to move in 6.
America is of course comprised of states, but the connection between state and federal government is far more precedented and operational than in the EUs instance. Therefore the EU may have a combined GDP of slightly more than the US, but the reality of the cpacity of that GDP to have an effect on the world or another nation in a targeted fashion is very dim.
As for the value of the Euro. You have to understand that America by in large dictates the movements of currencies. It is the main trader of currencies and if it wants to crash the value of the Euro it will sell its euros. At the moment it dosnt need to crash the EU because it is already flopping left right and centre. And so america has a huge amount of the euros in reserve, hence having raised the value of the euro. But if need be when its important to shit the power back a little in the US favour it will sell of some of its euros.
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Excellent critique.
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