The euro should now be put to the sword

[pmaitra]

^^

Multiple factors put together, including, but not limited to:

• Overspending by government, increase in government wages, and thus increasing the fiscal deficit.
• If there is less spending, there is risk of recession, and if there is more spending, there is risk of inflation. Either way, it is bound to bring chaos. This is the nature of Fiat Currency.
• Introduction of new currency; in the Drachma days, Greek products, services, and tourism were competitive, but ceased to be so after introduction of the Euro.

There are the three main reasons.

 

[panduranghari]

^^

Multiple factors put together, including, but not limited to:

• Overspending by government, increase in government wages, and thus increasing the fiscal deficit.
• If there is less spending, there is risk of recession, and if there is more spending, there is risk of inflation. Either way, it is bound to bring chaos. This is the nature of Fiat Currency.
• Introduction of new currency; in the Drachma days, Greek products, services, and tourism were competitive, but ceased to be so after introduction of the Euro.

There are the three main reasons.

[*]Overspending by government, increase in government wages, and thus increasing the fiscal deficit.

In short spending on a credit card with no limits.


[*]If there is less spending, there is risk of recession, and if there is more spending, there is risk of inflation. Either way, it is bound to bring chaos. This is the nature of Fiat Currency.

Fiat currency by its nature has to expand. In democracy the leader makes promises to do things with money that does not belong to him. The constant threat the central bankers give is of deflation.

"Brokers and traders will show you, "turn your gold into wealth", "put it to productive use, Trade It"! "Sell your gold and buy it again, many times". "Do this and find the value lost from your youth"!

But I say, spend your time in the company of truly wealthy ones, see how they make gold lie very still! Know this now, the world will again, in your time, feel value in gold as never before. And that value will be as the "productive use of holding wealth thru the fire of change". "Yes, you can also walk in the footsteps of giants".

"The economic game is ending! Watch closely as the world currencies and markets fall one by one. Watch in absolute wonder as the demand for oil plunges and its price goes thru the roof. Yes, oil stocks will crash with the markets. And gold? You will never know its price. It will stop all trading as it slices thru $10,000+."

"Sir, the world is going to change, and the rules of engagement will also change. Gold will be repriced, once! It will be enough for your time of life."

"Finally, we will all have a wealth reserve that places our footing in life on equal ground with the giants around us. Gold! Understanding the events that got us here and how they will unfold before us is what the Gold Trail is all about."

"My friend, debt is the very essence of fiat. As debt defaults, fiat is destroyed. This is where all these deflationists get their direction. Not seeing that hyperinflation is the process of saving debt at all costs, even buying it outright for cash. Deflation is impossible in today's dollar terms because policy will allow the printing of cash, if necessary, to cover every last bit of debt and dumping it on your front lawn! (smile) Worthless dollars, of course, but no deflation in dollar terms!"

"What changes is the recognition of what we do produce for ourselves and what we require from others to maintain our current standard of living. In the US this function will be a reverse example from these others. We will come to know just how "above" our capabilities we have been living. Receiving free support by way of an over valued dollar that we spent without the pain of work."

"Hear me now, what the wealthy and powerful know: real value does not have to always be stated or converted throughout time. It need only be repriced once during the experience of life, that will be much more than enough!"

[*]Introduction of new currency; in the Drachma days, Greek products, services, and tourism were competitive, but ceased to be so after introduction of the Euro.

Thats incorrect sir.

 

[blank_quest]

single currency has become a great hurdle for overcoming the "Great Recession"... if it were a multi-currency system as earlier they could have raised the bar of rates and regulated the money supply and adjusted the import export gaps i.e. BOP's and also the over revenue and social expenditure would have been easily traced. but now they can't hedge the risk.. so it will really take the time to change currency expenditure footprints pattern from "revenue and social" to "capital".

 

[panduranghari]

single currency has become a great hurdle for overcoming the "Great Recession"... if it were a multi-currency system as earlier they could have raised the bar of rates and regulated the money supply and adjusted the import export gaps i.e. BOP's and also the over revenue and social expenditure would have been easily traced. but now they can't hedge the risk.. so it will really take the time to change currency expenditure footprints pattern from "revenue and social" to "capital".

Really?

 

[blank_quest]

Really?

did I said something wrong? please do tell me!

 

[panduranghari]

did I said something wrong? please do tell me!

At the right time the Euro Zone will withdraw from the IMF, leaving the US and its factions as the only support for dollar credit assets held overseas. Then the evolution of SDR use will be complete. This will leave the SDR interpretation open to only one avenue to finding support: its basket currency function dissolved, gold will have to flow from American based [gold stockpiles]. With most of the present official credit gold leverage built upon IMF protocols, the US will find itself shipping ever higher priced gold to defend an ever lower valuation of dollar exchange rates.

If USG or FED tries to save the dollar gold markets, they will morph into a pure paper system with no gold supply to back them; paper would eventually be priced way below world physical markets. They will become a pure cash settlement item, in a way like the OEX. This will easily drive oil pricing into Euros. If they adopt a week dollar policy, trash the IMF and it's SDRs (prior to ECB withdrawal) USA will have to supply gold bullion outright and allow a true market price based on some currency supporting function; still at thousands per ounce. The entire anglo - London gold markets will spin off hugh,,,,, nation busting financial loses. By the way,,,, this is why ECB driving for EMU as soon as possible.

In all of this; the main story / component is oil supply! USA must keep the dollar function, if only in a diminished fashion, in order to buy oil imports. Once the dollar fully fails, everyone (USA partners like Mexico and Canada) will bolt for using Euros as reserves and international settlements. OIL value in the US would spike sky high even as local inflation drives alternative energy supplies to become uneconomic to produce. Even at $200 a barrel equivalent.

 

[blank_quest]

At the right time the Euro Zone will withdraw from the IMF, leaving the US and its factions as the only support for dollar credit assets held overseas. Then the evolution of SDR use will be complete. This will leave the SDR interpretation open to only one avenue to finding support: its basket currency function dissolved, gold will have to flow from American based [gold stockpiles]. With most of the present official credit gold leverage built upon IMF protocols, the US will find itself shipping ever higher priced gold to defend an ever lower valuation of dollar exchange rates.

If USG or FED tries to save the dollar gold markets, they will morph into a pure paper system with no gold supply to back them; paper would eventually be priced way below world physical markets. They will become a pure cash settlement item, in a way like the OEX. This will easily drive oil pricing into Euros. If they adopt a week dollar policy, trash the IMF and it's SDRs (prior to ECB withdrawal) USA will have to supply gold bullion outright and allow a true market price based on some currency supporting function; still at thousands per ounce. The entire anglo - London gold markets will spin off hugh,,,,, nation busting financial loses. By the way,,,, this is why ECB driving for EMU as soon as possible.

In all of this; the main story / component is oil supply! USA must keep the dollar function, if only in a diminished fashion, in order to buy oil imports. Once the dollar fully fails, everyone (USA partners like Mexico and Canada) will bolt for using Euros as reserves and international settlements. OIL value in the US would spike sky high even as local inflation drives alternative energy supplies to become uneconomic to produce. Even at $200 a barrel equivalent.

I really gained some new insight reading this!:thumb:

 

[pmaitra]

If Germany were to leave the euro, it would be better off

Another week, another conference about the euro. This time it was in Singapore. Nevertheless, it was Germany that was uppermost in my mind, not least because several Singaporeans asked me why Germany doesn't leave the euro.
[HR][/HR]
From the formation of the euro in 1999 to now, German unit labour costs have hardly risen.

Since costs have continued rising briskly elsewhere, Germany has gained competitiveness enormously. The result is now a surplus of exports over imports of about 6pc of GDP. It is this surplus – and the associated income and jobs – that defenders of the status quo say would be threatened without the euro.

But there is a catch. Germany has supplied BMWs to southern Europe and they have given it IOUs in return. Will those IOUs ever be honoured? That is the problem with trying to grow through unbalanced trade. In the end, your trade partners need something to pay you with.

Not that the German economy has been a stonking success during the euro's existence. Its average growth rate has been only 1.4pc, below the UK's – and below Spain's and Ireland's. The explanation is clear. Whereas consumer spending has grown by about 30pc in America and the UK, in Germany it has grown by only 10pc. The reason is that over the last 13 years, German workers' average real incomes have fallen by 4pc. The very success in keeping costs down has also kept pay down.

Source: If Germany were to leave the euro, it would be better off - Telegraph