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The Euro is in free-fall today, headed towards that $1.20 line. This is only a symptom of the
hastening collapse of the Euro zone. The social welfare state economies of southern Europe are imploding
and France will follow. The Euro is toast. The productive economies of Northern Europe are not large enough
to bail out all of southern Europe and France as well, so the zone is doomed.
I have warned my associates about these frauds for the last several years, and now the day of reckoning is here.
Southern Europe will collapse economically- as Greece already has. The French went insane and elected Hollande- all good and well, except he is putting the final seal of doom on the French economy. To top it off, French banks have an exposure to southern Euro-zone debt
somewhere short of $1 trillion. The French economy is doomed, and the French will never have had any idea what went wrong before, during, and after the collapse. Southern Europe will be in a depression, and Northern Europe will be in Severe recession after the collapse of the French economy.
The Euro-skeptics in the UK have been proven right all along. It was a bogus currency. Germany and the UK will claim the spoils.
Travel in Europe is about to get much cheaper, especially in southern Europe.
All this bad news is not all bad...LOL I have been SHORTING the Euro since it was $1.31 full time. My trading accounts are up about 200% just since the first of the year.
Prospects: The Euro is likely headed to parity with the dollar, back towards the day of the "Euro-Dollar". The Euro will be cheap in the $.85 range. Myself, I do not want to own any Euros at over $1, or parity with the dollar, one Euro = one dollar.
The experts are saying the Euro is "oversold" ! LOL They ain't seen nothing yet!
Europe will be cheap again, just have to avoid all the riots and small civil uprisings or even civil wars as the ponzi schemes unravel.
Why is the US not in the same boat? It would seem that the US would deserve to be, but it will not. The US will hurt, but nothing like Europe. Vast wealth and enterprises will flee Europe for the US. This capital flight is already underway. This seems pretty bizarre
in some ways, but it is already unfolding this year.
Last edited by OutWest on July 23rd, 2012, 9:36 am, edited 1 time in total.
Good analysis, but IMHO the US Dollar is not far off. Right now it's benefiting hugely from the problems in Europe you describe.
The U.S. dollar is the resolve currency of the world.
It was taken off the gold standard in 1971 by Nixon.
This makes the dollar worthless.
While the dollar goes down in value, inflation increases.
That's why the currencies of the world are falling.
Why are the central bankers causing this?
So they can all current currencies out of the way and replace it with the currency of the new world order.
This is being orchestrated and it's all part of the agenda.
You're where you're at in life because of your thoughts.
What you think about the most is what you will eventually manifest in your life.
The Euro will likely drop in a cascading fashion over a period of many months. When the first country leaves the Eurozone (perhaps involuntarily), then we will see the panic and the major moves downward.
As mentioned before, the dollar is benefitting (undeservingly) due to the negative noise out of the Eurozone, but we are next. When the dollar starts to go, that's when gold and other precious metals (which are now in correction) will soar. Start accumulating gold, platinum, and palladium shares now.
The best place to be is in CASH. Not dollars, but in foreign banks that give high interest rates. I am just below 100K in a 10% CD overseas. I'll be putting more there as time goes on.
Just be aware that to stay legal, you must annually report these accounts on an FBAR report to the US Treasury, and pay taxes on the proceeds. Don't let anyone scare you into thinking offshore accounts are "tax havens" or illegal. There is a legal way to profit from them.
As the currencies fall, inflation will continue to go up, anyone smart will invest in silver.
Because as inflation goes up, the prices of silver will go up as well.
Correct analyst -
Euro will never collapse. Why? Because Germany and to a lesser degree France benefit it from it tremendously. They will prop it up as long as possible. What does that mean for the Southern European countries? They will get dropped off, so it will go from being 27 members to about 20 or less.
Will it reach parity with the dollar which is currently valued at .84 the last time I checked? No, again Germany the biggest exporter in the EU benefits from a Euro higher than the dollar. The US is depressing its currency to make its exports cheaper... That chicken will come home to roost I will get to that in a second.
Brits shouldn't gloat they have a Debt to GDP ratio of 124%... That chicken will come home to roost and the riots of last summer is nothing to compared to what's coming.
What does all this mean? Nobody has a crystal ball so nobody knows for sure, but I'll take a stab at it.
The EU will create a real central bank like the US, UK and other countries have. When they do that, they will extend a final offer to Greece and Spain. Greece and Spain will likely default because that's what the protesters demand. They will still be in the Euro but no longer in the monetary union. What Greece and Spain have to careful of is the fire sell of its assets that may result from a seriously devalued currency.
The welfare state is not a failure, its in much better shape that anything happening in America.
When the EU solves its problem, the market will then turn its attention on the dollar and the fact that Congress has done nothing to help the two/three biggest problems with the economy:
Personal Debt (Credit Cards, Auto Loans, Home Loans, Personal Loans)
All this debt needs to be severely written down or forgiven. There is already a bill in Congress to forgive Student Debt up to $50,000. Won't help pre-med students and other really expensive doctoral or ph.d programs. This will likely happen because both parties want Gen Y's vote in the future.
Housing can be fixed by allowing Fanny and Freddy Mac to write down its loan guarantees, between them both they guarantee well over 90% of the home loans. This idea has been floated by the Obama Admin and could be something he may do in his first 100 days if he's elected to a 2nd term.
That leaves personal debt, you might be on your own here.
There's also another possible scenario - http://www.gold-speculator.com/munknee/ ... y-how.html
The US may engineer a soft default by issuing new paper currency...
If you don't have much debt or don't own much of anything this won't impact you much. But for those that have any real assets..... It will hurt.
But that's when you should buy a home in the US! Housing prices should drop by 50% or more...
It would lead to a increase in taxes but since almost all debt would be written down by 50% or more, it would unleash all sorts of spending, bailing out the Euro.
That's a likely scenario.
Unlikely but not impossible is complete collapse/chaos, but it would impact the US quite a bit more because we have too many guns, assault weapons and Google to make bombs with. Again unlikely but not impossible and if the US opts for a Japan style slow growth model, that may happen.
But the Euro is not the problem its the DOLLAR.
Chaos to a lesser extent is already here, 16% real unemployment, 20% for African-Americans, 25% for Latinos, 14% for college graduates
The Occupy Movements are gearing up again and the our military equipped Police forces will eventually kill somebody and we'll see what sort of response that brings.
London is going to see some serious riots. I see a Spanish and Greek default and booted out of the Euro currency, meaning chaos will be avoided by much of Europe, especially Northern Europe.
This is an Anglo Problem Peter.... Welcome to the Chickens of Poverty and Inequality coming home to roost...
All countries will collapse but will be created into something else.
The new world order is what will happen to the WHOLE world.
Europe and China do have a better future than America though.
The whole world will be given a new currency.
North America including Mexico will be turned into the North American Union.
There will be a one world economic and political system EVERYWHERE, including Europe.
"This is an Anglo Problem Peter.... Welcome to the Chickens of Poverty and Inequality coming home to roost..."
I am reminded why I have you on block...your comments are too stupid and ill informed to ever be bothered reading.
only the sheeple and the gutless will go into the NWO..the 5% of them left alive that is...
Those with some guts and determination will live in freedom. There will not be many of us but there will be some.
We will have our own businesses and owe own economy...and the NWO thugs will leave us alone.
They will enforce the nwo with a world wide military force.
Those with guts and determination will be captured or killed.
You can have a level of freedom in the nwo but it will affect everyone.
If slaves never dreamed of being free they would never be free....
Those who left europe to america were also told they were dreaming...
You are welcome to your surrender to the jackboot of the NWO.....
I would rather die on my feet than to live on my knees as you just said you are happy to do.