Merging the Canadian Dollar, American Dollar and the Mexican Peso

[Cops]

How would you feel if Canada, America and Mexico all came together and created one currency much like most of the European countries have done, the benefits in smaller European countries are tremendous and this really has helped out smaller European countries compete in a global market, but is this realistic and beneficial to most or all nations that agree to a Standardized North American currency?

Personally I kind of like the idea, as long as other things would not change because of this. I think Mexico would stand to benefit the most from this.

[iLDuce]

No

[genocidal]

First, it will never happen. So we all have to realize we're talking about fantasy land where Mexicans fly unicorns and Canadians ride polar bears.

Second, it can effectively happen if a government wants it to. If Canada pegs its dollar to the US dollar, voila. The bad part about this is the effects it can have on investing if shit gets fucked up (economic recession->floating currency->investor pullout->your kids starve).

[404 Not Found]

A unified North American Dollar would only happen when trade laws did not favor one country versus another, as well as legalities on wages and labor, healthcare, as well as many more factors are all on a level playing field.

It would be interesting if it happened, but I am doubtful it will be in my lifetime.

[Cops]

Then why did Europe put so much risk into it? Genocidal makes an interesting point that if shit hits the fan then it really hits the fan. Subsidies still exist and trade is not even close to being free or fair.

[Nycle]

Wikipedia has an interesting article regarding this. Personally I have no idea how it would turn out for North America, but from my own personal European experience the euro has brought way more advantages than disadvantages. I wouldn't want to go back to the old situation.

[Zerzera]

Wikipedia has an interesting article regarding this. Personally I have no idea how it would turn out for North America, but from my own personal European experience the euro has brought way more advantages than disadvantages. I wouldn't want to go back to the old situation.

Agreed.

But the United states is already sort of a group of states, which sort of is an example of what Europe is trying to become. It would be more like Europe merging currencies with Russia and the UK, which isn't going to happen either.

[Nycle]

Agreed.

But the United states is already sort of a group of states, which sort of is an example of what Europe is trying to become. It would be more like Europe merging currencies with Russia and the UK, which isn't going to happen either.

I don't think the EU wants or will evolve into a federation after the current US model. The EU as it is now is an "institution" in which countries pool some of their sovereignity for the achievement of common goals. This "pooling" is expected only to increase, but not to an extent in which a federal government dominates the creation of law on pretty much all big area's and its member states are kind of forced on taking up with it.

As for the UK not ever implementing the euro, don't be so sure of that. In such an integrated economy as the EU it's very hard (not too hard in this case due to the size and importance of the UK's economy) and costly to maintain an own currency. In the foreseeable future I too doubt that the UK will exchange the pound for the euro, but in the long term I see plenty of room for it. It helps that Ireland already has it (and look at its booming economy), British people would probably identify themselves more with them culture-wise than mainland Europe and thus might become less hostile towards the euro.

[genocidal]

I don't think the EU wants or will evolve into a federation after the current US model. The EU as it is now is an "institution" in which countries give up some of their sovereignity for the achievement of common goals. This "giving up of independence" is expected only to increase, but not to an extent in which a federal government dominates the creation of law on pretty much all big area's and its member states are kind of forced on taking up with it.

I won't pretend I know a whole hell of a lot about the EU but from the direction I've seen them going (age of consent laws, etc.) it's looking like the American model. If you're not American (and even some who are American) you may not know the degree to which state and local governments have sovereignty.

The big, sweeping laws have to be carefully justified under a strict set of Constitutional powers or else they'll be struck down (for instance, the Civil Rights Act of 1964 was grounded in the federal government's ability to regulate interstate commerce - not in any moral realm). Even then, its constitutionality was hotly contested. This is also the reason you see very incremental headway in abortion decisions - the federal government is careful not to encroach on states. I can see the EU turning into something similar, but maybe not to the same extent for a while.

[Mantra-Slider]

will be exciting to see how long Sweden can survive w/o the euro. so far we have only seen improvements in our economy w/o it but that might change very soon ^_^

[Ewan]

Much of Europe has too much nationalistic pride to ever accept a EU model that works like the United States.

[Galleleo]

I just don't like that since the Euro was implemented everything has become like twice the original price. 1 Euro was 2.2 Guilders in 2000 and now everything is like the same price in Euro's as it used to be in Guilders (so something that used to be 1 guilder is now 1 Euro).

Edit: in regards to what Ewan said: It's why the Dutch people said No to the European Constitution a few years back, and I believe some other country did too (was it France?). And it's why I am pissed our Government is not giving us a new referendum for the new European Constitution.

[Noah]

Only downside is for the rich countries that loses out some of those countries you can go with 100$ to and live like a king.

I'm from a rich country, and I'd rather see the currency more balanced.

[Pearl Jam]

it works for europe due to the smaller size of the countries and the ease/frequency of travel by people and businesses throughout them. the scale is much bigger for north america, and the frequency of travel isn't there for the most part.

from just reading this thread and using what financial knowledge i do have, my first thought is that this idea would pretty much just benefit mexico and nobody else.

[deathking]

Merging the Canadian Dollar, American Dollar and the Mexican Peso

thats where your idea went wrong.