Friday, December 31, 2010

Estonia, The Last Passenger on the Titanic


2011 is set to arrive in a few hours.  With its arrival, Estonia will join the EU currency regime as the last of 17 nations approved to use the Euro.   They may be the proverbial last passenger up the gang plank to board the Titanic.
Estonians in the last few years, have refinanced their home mortgages in Euro or other like currencies.  These loans would become unplayable if Estonia tried to back out of the currency merger at this point.  You could say that their population gave up state sovereignty for cheap home payments in a future currency they will have little to no advice in going forward.
Hopefully if the Euro does shatter, Estonia can find a lifeboat in the future Next Generation German Mark.  They have made the currency jump a few times now, what could be so hard with possibly having three currencies in one rolling twelve months?


No comments:

Post a Comment