This is they way I see it :
The euro has no lender of last resort, it could be the ECB but the Germans don't want the ECB printing euros and won't allow it. So there are inflationary concerns in europe, particularly from ze Germans whose economy thrives on the euro staying right where it is.
You can either cut interest rates to reduce inflation, or when they are so low that cutting them would mean negative interest rates (ie paying for the privilege of lending) then you can print money which is effectively like an interest rate cut.
So the euro has been whipsawing about for the last few months with Goldmans manipulating the currency markets and lining their pockets. Short positions on the euro are at an all time high (this is pretty meaningless as the number of short positions against the euro keeps risinng so yesterdays all time high pales into the distance against todays one)
Recently the figures are out showing that the British economy has shrunk in the last quarter, queue a kneejerk reaction of people dumping the pound and moving to they safety off [insert the current thought to be safe place to stash your cash here], probably US treasury bonds, although recently it was Tesco shares
So the pound gets dumped, and it's not that the euro strengthens against the pound per se, rather that the pound weakens. Plotting euro against gold would give a truer reflection, and yep it is a race to the bottom.
Believe it or not, the movers and shakers in the market have started 2012 quite bullish, and while talk of green shoots is not in the mainstream media, it won't be long.
Will the eurozone collapse? No. Will the euro cease to exist? No. Will the eurozone look like this 12 months from now? Not on your nelly.
And while I'm staring into my crystal ball, I also see the gold bubble bursting pretty soon.
Just saying like
The euro has no lender of last resort, it could be the ECB but the Germans don't want the ECB printing euros and won't allow it. So there are inflationary concerns in europe, particularly from ze Germans whose economy thrives on the euro staying right where it is.
You can either cut interest rates to reduce inflation, or when they are so low that cutting them would mean negative interest rates (ie paying for the privilege of lending) then you can print money which is effectively like an interest rate cut.
So the euro has been whipsawing about for the last few months with Goldmans manipulating the currency markets and lining their pockets. Short positions on the euro are at an all time high (this is pretty meaningless as the number of short positions against the euro keeps risinng so yesterdays all time high pales into the distance against todays one)
Recently the figures are out showing that the British economy has shrunk in the last quarter, queue a kneejerk reaction of people dumping the pound and moving to they safety off [insert the current thought to be safe place to stash your cash here], probably US treasury bonds, although recently it was Tesco shares
So the pound gets dumped, and it's not that the euro strengthens against the pound per se, rather that the pound weakens. Plotting euro against gold would give a truer reflection, and yep it is a race to the bottom.
Believe it or not, the movers and shakers in the market have started 2012 quite bullish, and while talk of green shoots is not in the mainstream media, it won't be long.
Will the eurozone collapse? No. Will the euro cease to exist? No. Will the eurozone look like this 12 months from now? Not on your nelly.
And while I'm staring into my crystal ball, I also see the gold bubble bursting pretty soon.
Just saying like
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