Thursday, May 13, 2010

Is Euro Trashing Since Monday What They Wanted All Along?

Now, what if this trashing of Euro since the introduction of the supposed rescue plan has been THE PLAN all along?

(Tinfoil hat please!)

Cheaper euro would help the area's exporters (mainly Germany I suppose), stronger US dollar would help Geithner's Treasury to attract foreign buyers for the auctions, which would keep the rates low. (How about the US exporters? Oh we thought all the meaningful jobs have been shipped outside the US anyway..)


And as Bank of England's Mervyn King says, the EU now has to have a tighter fiscal union (meaning saying goodbye to the last shred of "sovereignty") in order to save the monetary union.

Never mind as to why the EU has to save the monetary union.

Mark my words. The monetary union was (and still is) for the rest of the EU to step on Germany and keep stepping on. As Jim Rogers said, euro is (and always has been, IMHO) a political currency.

PIIGS governments are hurrying to offer one austerity measure after another. Portugal will introduce "crisis tax" on businesses and individuals. No joke. Taxing more on a contracting economy is a sure winner.

US, UK, and the rest of EU had better remember what happened the last time they all ganged up on top of Germany.

(OK, tinfoil hat off.)


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