Devalue the Euro?

thatguy · Jul 2, 2012

http://www.zerohedge.com/contributed/2012-06-30/devalue-euro

- More LTRO. No there is no more collateral. All of the swill loans have already been hocked.

- Cut ECB % rate. Doesn't matter. It won't change conditions in Italian or Spanish funding markets one bit.

- A spending plan of <1% of GDP. That won't put a dent in the recession that is building.

- Brussels buys more sovereign bonds to avoid a catastrophe of Italian 10-year exceeding 7% (capitulation). Sorry. There are "wise men" in Germany who will simply not allow this to happen in the scale that is required.

- The ECB goes Defcon 1 and launches a E2T QE program. No same answer as above.

- Merkel does a 180 and embraces Euro bonds. No chance in hell.

-The US or China are going to start buying EU bonds? Lunacy not happening.

-The IMF will come to the rescue? No way the IMF does not have the resources to solve anyone's problems.
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Interesting article, no mention of gold as colateral?

What is the "fair" value of the Euro? Whatever the central banks want it to be. Is the Euro over valued today? Visit the EU and make your own judgment. I say it is. The following articles go a long way towards answering the question of the Euro's value versus the dollar. When EADs puts up $600m to build a manufacturing facility in Mobile Al., you know the Euro is over-valued.
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Race to the bottom FTW

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Devalue the Euro?

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