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The poor beleaguered, unappreciated, anti-dollar EURO. Nobody wants it.
Or do they? I read somewhere (I don’t remember where – maybe it was John Mauldin’s news letter – or maybe not) that the EURO is being bought up and deposited in German Banks. Why? Because Germany will be the country that decides when the EURO breaks up, and when that happens German EUROs will be converted to Deutsche Marks, and the DM will soar. Now that’s just wild speculation – right?
The dotted bull/bear trend line has been crossed three times in the last 11 months. Each time it did so it left a gap on the chart. Will there be a fourth?
I’ve read (once only) that each country gets to print their own euros, and that you can tell them apart by their serial numbers.
How this plays into your theory I’m not sure.
Germany buying only German printed euros ?
Not my theory, although I am guilty of repeating it. I, too, wondered how this is likely. Let’s consider:
A EURO is a EURO is a EURO. Suppose you live in Portugal, or Italy, or Ireland, or Greece, or perhaps Spain – one of the PIIGS countries. You have a nest egg. The local economy is precarious. In what bank do you squirrel away your savings? You want no exchange fees, easy access to your money, safety, and the possibility of appreciation. Would you choose a German bank?
Probably it will never happen…but for sure if the euro would be converted in DM ( and in french franc…italian lira…etc…) it will be probably the strongest currency in the world.,the problem is that are the germans themselves that don’t want this to happen otherwise they would give their competitors (even in europe) a big gift.
The European Economic Union is a noble idea. The problem is the EURO – one size does not fit all. There are imbalances with the fixed currency, as we all know. The economic union can’t continue forever without radical change. And if it can’t go on, it won’t. So it must change eventually, but how?
That is for the Europeans to decide. We hope they choose well.