
The Euro is facing a big test this day and this weekend as the countries do their stress tests on their economies. IF these stress tests do not go well in most of the countries I can see the Euro falling sharply to the dollar. IF the stress test go well then the Euro will stay strong and stay a vital part of the european economy.
Joseph Stiglitz: the euro may not survive:
Joseph Stiglitz, one of the world's leading economists, has warned that the future of the euro is "looking bleak" and the fragile European economic recovery could be irreparably damaged by a "wave of austerity" sweeping the continent. Ref. Source 3
I think the Euro will survive all of this but it will be weaker than the USA dollar. I think the Dollar may not be the worlds monetary leader either. I can see the world turning to something called Credits or something like that. People are turning away from money as it is. They are paying more and more with debit and credit cards only. Soon having real cash on you will be a thing of the past. But I believe the Dollar and the Euro may be the last to go.
Dollar set for sharp decline, Goldman forecasts:
The dollar will embark on a sharp decline over the next 12 months, Goldman Sachs forecast on Wednesday, as policy makers in Washington look poised to press the trigger on another round of printing money. Ref. Source 5
New $600B Fed Stimulus Fuels Fears of US Currency War
The Federal Reserve will pump $600 billion more into the US economy and keep interest rates at historical low levels. The short-term impact of the Fed's move, known as quantitative easing, has been a jump in stock prices across the globe. Many nations, however, have accused the United States of waging a currency war by devaluing the dollar. We speak to former Wall Street economist and University of Missouri professor Michael Hudson. "The object of warfare is to take over a country's land, raw materials and assets, and grab them," Hudson says. "In the past, that used to be done militarily by invading them. But today you can do it financially simply by creating credit, which is what the Federal Reserve has done." Ref. Source 9
Declining Dollar
Just how bad will the dollar get? Glenn talks with Damon Vickers from Nine Points Capital about the sorry state of the dollar and what, if anything, can be done to stop it from becoming the 'world's weakest currency' as JP Morgan Chase predicted. Check out the conversation from radio today Ref. Source 2
Euro stands just 20pc chance of survival in next decade:
The euro stands just a one in five chance of surviving in its current form for ten years, according to the Centre for Economics and Business Research. Ref. Source 7