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Ear to the Ground

What’s Euro Problem?

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Posted on May 4, 2010
Flickr / Andres Rueda (CC-BY-ND)

The once-mighty euro, a currency that humbled American tourists in its day, has sunk to a 13-month low against the dollar. Greece’s impending bailout apparently isn’t settling nerves in the eurozone, which includes other major economies that look a little wobbly as of late.

Spain, with its 20 percent unemployment (a figure that has doubled since 2008), and Portugal have been causing economists and analysts some concern—PZS

AP via Google:

Analysts don’t see an end to the euro’s fall. UBS AG, which had a three-month price target of $1.30, says its euro forecast is under review. Morgan Stanley, which has a euro forecast of $1.24 by the end of the year, is considering lowering its target.

“There’s no easy way to fix the debt problem in Europe,” said Morgan Stanley currency strategist Ron Leven. “It’s very difficult to see how Greece can dig itself out of its debt problem.” There may have to be a restructuring of Greece’s debt beyond the bailout, he said. European banks, which are big holders of Greek bonds, would take a big hit.

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By Heba, May 17, 2010 at 7:36 am Link to this comment
(Unregistered commenter)

please i need update report for the Euro Problem? and what about here in the middle east??? plz i need ur help

waiting your reply

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Night-Gaunt's avatar

By Night-Gaunt, May 6, 2010 at 9:39 am Link to this comment

I find it ironic that the USA tottering on the precipice of economic destruction itself (real unemployment between 17% & 20% puts us into a Depression) and only the propaganda and the printing press keeping it from being easily seen by the populace at large.

Fiat money allows the connexion between the paper money and its actual backing of what gives it material wealth disappear. Then you get inflation and/or deflation like in Zimbabwe now or Weimar Germany in the 1920’s-1930’s. Right now the threat of deflation is breathing hotly on hour heels.

 

 

 


5

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By Ivana Bottini, May 6, 2010 at 1:17 am Link to this comment
(Unregistered commenter)

First the facts: every single major OECD Government is running a deficit this year. Big ones. All those Governments must also return to the market in 2010 to roll over maturing debt. As for paying back debt, two words: ha ha. To even pay off interest on existing debt they would need to run a surplus equivalent to the interest bill. No-one is doing that. Government deficits are thus a combination of interest payments and all the new and exciting spending programmes they came up with recently.

Government funding programmes are much bigger than that.  Government funding programmes for 2010 include any debt maturing in 2010 and the deficit.

For the United States the 2010 funding programme amounts to 1.7 trillion USDs and next week the Fed will complete its U.S. bond buying programme. So the U.S. Government will no longer be able to count on buying from the U.S. Federal Reserve. It’s crunch time. AGAIN.

There’s more to this issue than meets the eye.  The Euro crisis is a smokescreen, the real crisis is in the United States.  Stay tuned.

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By Ivana Bottini, May 6, 2010 at 1:14 am Link to this comment
(Unregistered commenter)

First the facts: every single major OECD Government is running a deficit this year. Big ones. All those Governments must also return to the market in 2010 to roll over maturing debt. As for paying back debt, two words: ha ha. To even pay off interest on existing debt they would need to run a surplus equivalent to the interest bill. No-one is doing that. Government deficits are thus a combination of interest payments and all the new and exciting spending programmes they came up with recently. Government funding programmes are much bigger than that.  Government funding programmes for 2010 include any debt maturing in 2010 and the deficit.

For the United States the 2010 funding programme amounts to 1.7 trillion USDs and next week the Fed will complete its U.S. bond buying programme. So the U.S. Government will no longer be able to count on buying from the U.S. Federal Reserve. It’s crunch time. AGAIN.

There’s more to this issue than meets the eye.  The Euro crisis is a smokescreen, the real crisis is in the United States.  Stay tuned.

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By samosamo, May 5, 2010 at 7:40 am Link to this comment

**************


Surely anyone should know, except those addicted to msm BS
and lies, that since the ‘big boys’, confiscated the gold and other
‘precious’ metals that used to back this fiat money, or until when
it was ‘DECREED’ that paper with pretty pictures on it was ‘LEGAL
TENDER’, that just about made most every economy worthless.

Not, I rather think, that having something like gold ‘back’
printed paper would set certain restrictions on value and
interest might be good, but this won’t happen because the ‘big
boys’ decided instead of something of real value for the people
to use, would not lend itself to proper control of economics,
where money printed on paper does just the right trick by
making economies based on DEBT.

This allows such unscrupulous operations we see coming out of
the federal reserve, wall street and corporations who all seem to
have the facade of knowledge and being able to dictate the
program because those places are point sources for the ‘big
boys’ to do their dirty work.

How to get out from under such criminally inane tricks would
require nothing less than the people going after these big boys
and create economies based on truth, value and the ability to
SAVE that has little or nothing to do with the current idea of
‘investors’ who just lob around huge numbers and thrill at their
economic indicator, the stock exchanges.

And as I have said before, due to the number of people in the
world and the insidious role MONEY plays in an economic
system of GREED, it was obvious that the criminal mind would
eventually think out the ways to hoard the wealth. And
government and religions have played parts in this as well.

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