Is the Euro having Serious Problems? : LUSENET : TimeBomb 2000 (Y2000) : One Thread

I continue to see the pollys on this forum claim that because the Euro introduction went smoothly, we can be sure that Y2K will be no problem. Here is a portion of an article that appears to dispute the assertion that the Euro isn't having any problems..., May 21, 1999


Wow, I sure screwed that up! It's amazing what one little character missing can do...

The Return of Inflation
Or the Beginning of Y2K?

By Martin A. Armstrong
Princeton Economics International (London Office)
© Copyright May 14th, 1999


The more important issue behind the Euro weakness is the dirty little secret that is being kept from the general media at all costs - the Euro clearing system still does NOT work! Merchants who take Visa or Master Card normally receive instantaneous cash when they deposit your transaction with their bank. This is now true for all currencies EXCEPT the Euro! Euro credit cards are taking days to clear and as such the Merchants have been the first to feel the effects of a clearing system that still does not work. Between banks, all currency transactions settle at the end of every day. Euro settlements are also taking days. Banks in London are putting Euro checks on a 4-week clearing status. The net effect, many are starting to discount the Euro in order to accept it. Even American Express has issued only 5,000 Euro based cards. This is not such a good story for a currency that was going to knock the dollar off this planet. Most central banks are still unofficially not accepting Euros as a reserve currency, which has been told to us on a confidential basis. If publicly confronted on this issue, everyone would naturally deny it, but the failure of the Euro has been expressed in its near perfect swan dive since January 1st.

The Europeans are having extreme difficulty solving the problems of the Euro. Most computers cannot calculate fractions of a currency and therein lines a far worse problem than merely Y2K. China's work around for Y2K is to simply turn their computers back 20 years. That trick will work, but calculating fractions of a currency remains impossible when such functionality never before existed. For this reason, your taxes in Germany are still payable in DMarks - not Euros.

[end snip]

Flame away, pollys...

-- Nabi Davidson (, May 21, 1999.

Wait, this quote China's work around for Y2K is to simply turn their computers back 20 years. That trick will work, but calculating fractions of a currency remains impossible when such functionality never before existed. seem to be saying that the Euro is a much harder problem than y2k, which goes against every other assertion I've seen. They usually say that the Euro is much easier than y2k, so we shouldn't take any heart from the apparent success of the Euro.

-- Blue Himalayan (bh@k2.y), May 21, 1999.


-- Blue Himalayan (bh@k2.y), May 21, 1999.

Wow, I sure screwed that up! It's amazing what one little character missing can do...

Yes and it's going to be even more amazing to see what two little characters missing can do...

-- a (a@a.a), May 21, 1999.

The article Nabi found also talks about businesses stockpiling:


Today the markets were surprised by the sudden rise in business inventories and inflation statistics. The implication of today's numbers was clearly reflected in the price action that immediately followed - higher interest rates. The insane interpretation in currency was that the foreigners would begin to sell stocks so sell dollars while you're at it.

Today's release of the CPI (Consumer Price Index) and business inventories should have come as no surprise. We have been warning that the effect of Y2K will be inflationary - NOT doom and gloom depression as some have touted over the Internet. Many businesses have realized in the United States that there may be a disruption in supply and as such they are starting to stockpile necessary goods. This effect will keep the US economy quite strong into year-end, but there is a risk of a slowdown come next year should Y2K turn out to be a flop. This will leave these same businesses with excess inventories and as such a slowdown in purchases will cause a downturn in the US economy in 2000. We may even see another sector shift that causes the real old forgotten stocks like elevator manufacturers, electrical contractors and perhaps heating and air conditioners to emerge as the darlings of 2000. If there are severe problems with power grids causing brownouts, that is a formula for record sales of electrical motors of all sorts - including computers.

Even Coke has announced that they are accumulating a 3-month supply of raw materials needed for the manufacture of their soft drinks. Medical companies are anticipating the public to stockpile medicine and the manufacturers of those pretty bottles are running at full capacity. Every aspect of the economy is starting to heat up for Y2K and this may be the best reason of all to resign as the Treasurer of the United States while you're still on a high note.


-- Kevin (, May 21, 1999.

This isn't about the EURO, but a reminder that WE will be on our own if anything "bad" happens. A snip from Nebraska legislation, story can be found at Year 2000 Press Clippings.

**** As amended by the Judiciary Committee, the bill would allow suits only by people who have a contract with the government agency or the bank. Class-action suits would be barred against the government and would be allowed against banks only after they have had six months to correct the problem.


Don't know if it'll make any difference in the long wrong, but banks and government will anwer for NOTHING.

Never forget --- We are on our own.

-- Jon Johnson (, May 21, 1999.

Yes, big ones!

-- FLAME AWAY (, May 21, 1999.

The state of Nebraska cannot legally abrogate your right to petition the government for redress of your grievances.

-- DMH (, May 21, 1999.

Yeah, the state of [whatever] cannot legally do a lot of things. So also cannot the U.S. Federal Government. (The Constitution is its law.) But that doesn't stop the politicians and bureacrats. You can petition all you want. Obtaining redress, including forcing them to obey their oaths, is another matter.

-- A (, May 21, 1999.

Then let the recalls begin! Political heads are going to roll in 2000 and beyond.

-- DMH (, May 21, 1999.

Moderation questions? read the FAQ