sinking euro worries

arjay wrote:I see the Euro continuing to sink, or at least remain "in the doldrums"!

how long before germany has a referendum ,
to GTF , out of the zero zone .
watch this space .

Peterplay wrote:@ Khondahm Do you think the end of the rabbit hole will be shared by the euro ? The Yen and the Rinminbi staying at the surface ?

I always perceived the USA as a pretty resilient country and I wouldn't be surprised if they are able to make the great turn around.

Dollar, Euro, and Yen are holding hands on the way down.

Recall that Japan was the #1 creditor prior to China. They are holding too much US paper and their economy has been crap for a long time already. They are floating around on their little inner tube island searching for the right pin to prick their economy. Could it be that HUGE sack of pins called US debt crammed in the stern? Methinks so.

Renminbi/Yuan is sitting up in its penthouse sipping martinis while laughing at all the peasant currencies milling about below. China makes stuff. LOTs of stuff which the entire world NEEDS. In addition, the domestic economy is so big and growing so fast that if the US and European economies were to tank today, they would barely hiccup. Why? Because being the world's #1 banker and #1 supplier, they recognized the future long ago and wisely diversified globally. For example, they have been investing in and raping Africa (and trying for Australia and other places) for all the natural resources they can grab as a way to tacitly dump their dollars. What have the western countries been doing? Pulling out. Really...what use is the US and Europe to China other than just a place to sell their wares and move money around for their deals? Hell, they moved all their external gold deposits to Hong Kong (under the airport) not long ago. They can do deals through HK or Singapore should Wall Street and Paternoster Square implode tomorrow.

If it were widely available and allowed to float, the Renminbi/Yuan would soar.

The dollar turn around? LOL. HOW? There is no credible solution. The dollar is doomed. Remember the Roman currency? Nope, me either (without looking it up). Same will happen to the dollar. Just a matter of WHEN. I am thinking within the next 10 years at the outside, but the truth is that it could easily collapse literally overnight. 2008 crash proved that, if nothing else.

All IMHO, of course.

http://www.bloomberg.com/apps/news?pid= ... _SHqr1LQhk

"Europe’s debt-ridden nations have to raise almost 2 trillion euros ($2.4 trillion) within the next three years to refinance, according to Bank of America Corp."

Hmmmm...what's that, again?

"Europe’s debt-ridden nations have to raise almost 2 trillion euros ($2.4 trillion) within the next three years to refinance, according to Bank of America Corp."

So...where's the money coming from? Why the printing press, of course! Down, down, the rabbit hole it goes...

It seems the government employees are not in favor of the plan....

There are 2 ways to cut spending, cut wages or layoff workers......

http://uk.news.yahoo.com/18/20100608/tb ... 68574.html

Paul Krugman has an interesting piece in this week's New York Times about the Euro. Sort of a Euro for Dummies article for folks in the US who aren't in tune with the intricacies of the EU or how they compare to the US system of government. It's a long read, but at the end, it strengthens my belief no one can aptly predict the future of the currency markets. die dollar die, euro collapse, chinese revalue their currency..........how the baht will survive any or all of those moves is anyone's guess.

An interesting but, in my opinion, flawed article; I will just pick on a couple of areas where I think the article falls down:

1. The comparison of Ireland and Nevada – Paul Krugman claims that the losses of Nevada will be covered by Washington...... but then fails to say who will ultimately cover all of Washington’s losses

2. The will in Europe for the EUR to succeed is seriously underestimated in the US (and by quite a few Europeans as well) – however, most Europeans are extremely conscious of the impact of two world wars in their homeland that resulted in millions of deaths and widespread devastation and there are no lengths that those Europeans will not go to, and the EUR is one of them, to avoid a repetition.

The NY Times article: http://www.nytimes.com/2011/01/16/magaz ... ope-t.html