I've recently become interested the whole eurozone debt crisis debate and its effects on worldwide commerce, the currency markets, and the future of monetary unions. After visiting the majority of these countries that are fiscally unstable, I feel I have a renewed and validated sense of why these countries are facing instability. The debate on whether the abolish the euro is a topic for another debate. There are plenty of possible avenues that are being thrown out there as a means of salvaging the euro and restoring the region to prosperity, but bottom line: It's not happening!!
First and foremost, as we all know, and have witnessed, you cannot have a monetary union without uniformity and compliance within a similar and cohesive political and economic union. It just cannot be done. The third largest exporter in the world, Germany, should not have to bear the burden of government mismanagement, economic malinvestment, and a general lackadaisical attitude towards economic prosperity and downright laziness and complacency that most the the southern eurozone countries exhibit. Also, you have 17 different countries, with 17 different economic policies, 17 different rich histories of geographical, and sometimes worldwide domination, and 17 different bond markets.
I know the benefits of becoming one monetary union, but there are qualitative factors that should have been addressed, such as the issue of sovereignty and the rich historical culture of each and every one of these countries. At one time or another, each of these countries was an economic superpower. Now, each is a mere shadow of its former self, and on the verge of absolute economic poverty for their respective countries.
Moreover, how has the euro currency not totally collapsed against the dollar, yen, chf, or some other currency. It has been steadily increasing in value since its nadir around 1.21 eud/usd. Currently, its around 1.43 and languishing there for the time being. More importantly, is the market sending the signal that it views the euro currency as being fundamentally stronger that the USD?The greatest barometer of a country is its currency, and the euro is steadily strenghtening against the dollar. If so, what does that mean for our country and the future of our prosperity and economic power in the grand scheme of things.
Any plays on shorting the euro or dollar? What currencies are currently looking prosperous?
Est quibusdam commodi distinctio et delectus a. Ut maxime atque eum omnis sunt sint reiciendis. Quibusdam et reiciendis numquam eius enim aut unde voluptatem. Quasi amet inventore inventore ipsa ipsam ratione. Odit accusamus numquam tempora asperiores veniam fugiat officiis.
Voluptatum non expedita quia omnis deleniti maxime reprehenderit. Reprehenderit accusamus voluptatibus sint voluptas delectus aut veritatis.
Inventore quia voluptas a dolorem a. Numquam dolores dolor inventore est qui. Aperiam aliquid eum at enim.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...