Tag Archives: euro

Frankly, I cannot see how one can distinguish the Fed from the European banking system and looking at things in this way provides a very different picture of the international landscape. The Fed is dependent upon euro printing in order to ramp up dollar printing, yet they are both one and the same. All of the GS boys running over to Europe after the Fed banks defaulted on the OTC derivatives takes on a new light in retrospect. It was a family reunion!

Stocks are up. Bonds are expensive. Dollar cash is unlikely to preserve purchasing power in an environment of negative real rates. Diversifying to a basket of hard currencies might help to mitigate some of the risks out there. It clearly adds currency risk but in an environment where there may not be such a thing as a risk free asset, it might be a risk worth pursuing...

No matter how you look at it, the U.S. dollar is very weak - very close to its all-time lows. If the value of the dollar says anything about the world's confidence in the U.S. economy, the message is quite pessimistic. The only good thing to be said is that there is a lot of bad news that is priced into the dollar. It might be tough for things to get much worse. (Words: 1054; Charts: 7))

The future of the eurozone all boils down to Germany. I've been forecasting for months that Germany will increasingly focus on domestic interests and that it will ultimately opt to leave the Euro rather than prop up the EU. The former (focusing on domestic issues) is already underway and I believe the latter will occur once the EU Crisis spreads to France which I expect to happen before autumn. At that point, it's game over for any notion of the current EU lasting because Germany will walk! [Let me explain further.] Words: 675

The future of the eurozone all boils down to Germany. I've been forecasting for months that Germany will increasingly focus on domestic interests and that it will ultimately opt to leave the Euro rather than prop up the EU. The former (focusing on domestic issues) is already underway and I believe the latter will occur once the EU Crisis spreads to France which I expect to happen before autumn. At that point, it's game over for any notion of the current EU lasting because Germany will walk! [Let me explain further.] Words: 675

Predicting dire scenarios for the euro zone has become a cottage industry. Each day well-respected economists and investors explain why the collective economies of Europe are doomed - that it's only a matter of time - but I outline here 3 reasons why becoming too gloomy on Europe might be the wrong approach. Words: 600

Predicting dire scenarios for the euro zone has become a cottage industry. Each day well-respected economists and investors explain why the collective economies of Europe are doomed - that it's only a matter of time - but I outline here 3 reasons why becoming too gloomy on Europe might be the wrong approach. Words: 600

I've often been labeled as "Gloom and Doom" in the past, but the situation in Europe today is beyond anything I've ever seen before. It is highly likely that the EU will not exist in their current form by the end of the year. I realize some of this may sound overly dramatic but the following should give you an idea of how serious things are getting: [Words: 715]

An op-ed has just been published in the New York Times suggesting that the best way to save the euro is for Germany to exit the European Union and re-introduce it former currency, the Deutsche mark. [Here is the rationale.] Words: 310

Follow the eurozone crisis as it unfolds with this quick guide to key dates, developments, and investment implications.