While the press has given a deal of exposure to the Asian and Russian crises, little has emerged in the media about the gravity of the dangers posed by the introduction of the euro, the European Union’s collective currency due to come into effect on January 1, 1999. Described by former British Ambassador to Washington Peter Jay as “Europe’s engine of mass destruction,” the euro is looked upon with jaundiced eyes by many serious investors in Europe. This has led to a transfer of funds from traditional European currencies (Deutschemarks, guilders, francs, schillings, pesetas, lire, escudos, Finnish markka and Irish punt) into sterling holdings and the dollar.
The prime reason for this is that the conversion rates between the collective European currency (the euro) and each participating national currency unit will be irrevocably fixed in 1999, under criteria prescribed by the Maastricht Treaty.
Financial correspondent Christopher Story, in acerbic commentary on this phenomenon, stated, “Taken literally, this means of course that the brilliant ‘builders of Europe’—the constructors of this new ‘Tower of Babel’—know, by means of some occult power (since, how else could they know?) that the rates selected for ‘irrevocable’ fixing will be suitable for the participating countries concerned for the whole of eternity.
“This is a recipe for economic, social and political disaster” (Economic Intelligence Review, Sept. 1998).
Far from ushering in a glorious new world order of peace, wealth and stability, the beginning of the new millennium looks increasingly like it will engender a period of great social, economic and financial instability which could shake the entire globe.