If the Euro falls, is that really bad for the $?

[ShroomDr]

I know the banks own a bunch of foreign debt, and if any 'global currency' fails, its not good, but wasnt the Euro created to compete with the Dollar?

I dont know the current exchange rate, but i know it has been over 2:1 Dollar:Euro. Seems like the Euro was kicking the Dollars ass.


FWIW im about to make a fairly substantial (for me) seed purchase, and im just wondering if i should wait a few weeks...


ShroomDr doesnt want to start an international incident; not trying to start trouble, im just trying to make heads or tails of this.

The dollar was 'losing' for so long, now that it may have 'won', why will the $ lose?

 

[Phillthy]

each euro is worth 1.35 dollars. the dollars has been behind the euro for years and the euro isn't going anywhere.

 

[ShroomDr]

I hope it doesnt go anywhere, but i does seem they are going to have to kick some countries out.

1.35 huh? I remember it being why higher, like i eluded to, i can somewhat track it with the seedbay prices.

 

[Harry Gypsna]

each euro is worth 1.35 dollars. the dollars has been behind the euro for years and the euro isn't going anywhere.

Youy got that right, the one-worlders in the EU, will sell the fillings out of every "European" man, woman and childs teeth to prop up their little federal dream.
EU=the Reich minus the nutty racism and eugenics

 

[Max Headroom]

the trouble with the euro is a result of the US launching a full scale attack on it via their attack dogs IMF and world bank.
they are trying everything to keep the crumbling empire's head above water.

 

[jaded1]

Not that i think it will happen but if weaker countries were kicked out the euro,the euro would become a lot stronger meaning exchange rates would rise.

 

[green_land]

does it really matter? i hope everything will crash! things will be much better....

 

[Hermanthegerman]

Exciting times in the moment! I think the euro didn´t fall and yes it´s a little bit true, the germans may win the last war, peacefull, 66 years later. But 98 percent of all germans don´t know or care.

 

[paulo73]

Not sure but...

Not sure but...

...a couple of good points raised

the trouble with the euro is a result of the US launching a full scale attack on it via their attack dogs IMF and world bank.
they are trying everything to keep the crumbling empire's head above water.

Very true sadly the empire´s head as been submerged for quite a long time now...they are running on borrowed oxygen

Exciting times in the moment! I think the euro didn´t fall and yes it´s a little bit true, the germans may win the last war, peacefull, 66 years later. But 98 percent of all germans don´t know or care.

Thanks for sharing that one because that´s something that seems almost obvious to me. Germany is trying to achieve total control of Europe, only this time the main weapon is economical control.

Funny,scary but very exciting times are in front of us
I would love to wake up in a world without currency

 

[mrcreosote]

The EU is belatedly finding out that you can't ignore economic fundamentals no matter how much 'vision' it takes to do so.
What is the point to forming an economic union when the rules are broken before the ink is dry on the playbook. Debt % to GDP ratios were ignored and fudged from the beginning to 'create' the union from the start. Add to this that a common currency also needs a common bond market and a unified lender of last resort to prop up the weak links. This never happened.
Countries that had beer budgets were allowed through the Euro to have champagne tastes until lenders got worried they may not get their money back.
They were right. Lending money to deadbeats is bad business. (See USA, we're experts in the field).
Finally, all those 'really smart' economists are figuring out that keeping afloat by borrowing and spending much more money than you can earn is unsustainable in the long run, but like in poker, when you have too much in the pot, you can't fold and have to play the hand.
Even if you have to write another IOU to stay in.

Edit: But to answer the OP's question if it's bad for the US if the Euro fails...
Yes,
It's like having a hooker with syphilis at a busy orgy... If one gets it, everyone gets it.
Drips all around.
But they just announced the biggies promised "there will not be a liquidity crisis" (We're printing money as fast as we can) so the market goes up and the lemmings are reassured that all is well.
For a little while longer...

Get your seeds now and get a lot. It's not inconceivable that currency restrictions for average Joe will become a reality in the near future.
There's a real shit-storm coming and it may be sooner than later.

 

[Hermanthegerman]

It´s funny, greece and other countrys needs and wants the german money but therefor they hate us and we´re the bad nazisguys again.
Germany needs the Euro for exporting things, 60% of our exports are going in the EU, with the Deutsch Mark back our things are to expensive and it´s over with the good german economy.
But for sure I don´t think that Germany wants to rule the EU but we´re in compulsion to move.

 

[SpasticGramps]

the trouble with the euro is a result of the US launching a full scale attack on it via their attack dogs IMF and world bank.
they are trying everything to keep the crumbling empire's head above water.

The trouble with the Euro is that many of their member states and their banking institutions are insolvent. Period. Full stop.

The IMF (USA) has been helping to bail them out for the last two years. This can't go on indefinitely and is all coming to ahead right now.

The Federal Reserve had to launch another massive bailout yesterday in order to keep all the banks from failing. This may have addressed immediate short term funding, but the problem is still getting worse. The bond market is trading as if the Euro is already finished. Even the lemming talking heads on CNBC explicitly said "we are on the brink."

I reckon sometime in 2012 the Euro will cease to exist in it's current form.

 

[mpd]

It will be catastrophic for anyone who is not an insider in the financial services industry. Get ready. The Euro is going to tank and the Eurozone is going to fold like a cheap card table.

 

[AWAKE]

does it really matter? i hope everything will crash! things will be much better....

AMEN!

 

[Iron_Lion]

If the euro fails Im going to go on a seed buying frenzy.

 

[mrcreosote]

Gramps got it right...
You know we got troubles when even the banksters say "Oops, I think we went too far this time."

The sheep ain't much use anymore if you take the skin off with the wool.

 

[mrcreosote]

You must spread some reputation around before you give it to Spastic Gramps again.

Exactly as you say.
I think when the markets get the party hangover and realize they've been had by a Fed pump and dump, the giant sucking sound will make the Euro look good compared to the beating the dollar is gonna take.

Part of a strategy to save insolvent banks?

 

[SpasticGramps]

The only hope for the Euro is that the EU pulls a rabbit out of it's hat and creates a fiscal union therefore taking over the sovereignty of its member states and then the ECB will step in and monetize the debt. This transfers sovereignty of eurozone participants to unelected officials in the EU. It would mark the official end of democracy in Europe. The framework for this has to agreed upon by Dec. 9 or the party is over for Europe. They need to call Hank Paulson in for some Mutually Assured Destruction speech. He can teach them how to demand supreme fascist rights over economies. Worked out great in the USA.

Think I'm being hyperbolic? Don't take my word for it. Here is Morgan Stanley with their analysis.

Fiscal Federalism Or Bust! Morgan Stanley Sees Dec 9th As Real European D-Day

We have often discussed the temporary and tenuous nature of any and all government-suggested solutions so far to the European crisis on the basis that the 'model' is broken. Following the decision to go for PSI, and the possibility of a sovereign leaving the Euro-zone (Greek referendum ultimatum), money is no longer fungible in and across European banks (deposits) and sovereigns as it seeks the stability of a narrower and narrower core. Arnaud Mares, of Morgan Stanley, who wrote the initial and definitive Greek story long before most others, brings up this very point; questioning the fungibility of Greek Euro deposits with French Euro deposits, for example, and interpreting the situation as a 'run on banks and governments'. His view that without a clear path to a fiscal lender of last resort - or a true fiscal federalism across a united Europe - which ensures solvent governments will never go illiquid, then the December 9th decisions mark a bifurcation point of critical import.

If governments choose to engage on the route to fiscal federalism, we believe that this does not mark the end of the crisis. It could, however, mark the beginning of the end of the crisis, as it would be a decisive first step towards stabilization and a European federation. The alternative could well be the beginning of the end for the European confederation.

The Euro dies, equities will go down hard with it. There will be a flight to safety into USD. It will rally hard due to it's perceived safety until the sovereign crisis reaches US shores.

 

[Sam the Caveman]

The only way the euro can be salvaged is if Germany gets out, but if they do that there will be an immediate massive inflation of the euro. Anyone getting out of the euro is not what the globalists want, they want more centralization of power.

I'm guessing from here on out, they will try and print money however they can scheme it up. Inflation will be the word ignored by all the media pundits, just like in the usa because that will be exactly what is happening.

Inflation is just what the globalists want, all over the planet. Then the people will be begging the IMF for a world currency.

The euro will live on, even though thats the worst option. Technocrats rule, peasants obey. If you can trick people into allowing you to create money for them, you own them, plain and simple. The IMF is made up of central bankers from each country.

 

[SpasticGramps]

I reckon it will survive too in some form, but the crisis needs to be well known in order to get peasants to hand over their last bit of sovereignty and create the necessary fiscal union. A few bank failures, screams of the apocalypse from the leaders, stock market crashes just enough instability to scare the shit out of everyone and make them beg for their debt serfdom as we did in 2008.

Then the technocrats who caused this mess will step in with a solution and all will be well as Europe joins the US in printing their way to prosperity.

Or a few thousand years of tribalism will prevent the European Super-State from emerging as countries just leave. To say that these are historic times is the understatement of the century.