We have received the bills of our Czech Republic and Eastern Germany tour, and it amounts to peanuts. The euro has lost its worth and Europe is cheap for us Israelis. How the powerful have fallen! Merkel says that the situation of the euro is "exceptionally serious" (read Gary). That means that we may be able to take a ski vacation in Austria, I mean, financially. I dont like skiing. What else may an Israeli do in Europe that cannot do in Israel?
In my water field, German products are by far the best, but they had been too expensive for Israel. Now, if the euro collapses, importing German water fittings may become a doable business. I think the water sector is not an exception, thus a cheap euro will favor Germany. And it will suffocate American and Japanese export industries. So the dollar will have to be depreciated, and we have arrived to the currency war scenario. The euro has lost 15% of its worth tete-a-tete the dollar, which itself has been steadily loosing buying power. The latest bonds sold by Spain pay only 5.5% interest. I cant imagine anybody sober buying them with his own money. It must be Germany buying them. אלוהים ישמור God help us!
2 comments:
This assumes that there will be a Euro. The Euro appears to be the price that the French exacted from the Germans for agreeing to reunification. The blood debt has now been paid and the Germans can honorably cut their lazy neighbors to the south free - they will both be better off. It never made any sense to have such diverse economies and political systems under one currency.
K
K
I think the economic scenario you describe is accurate.
Koko has warned here before of the spectre of competitive devaluation.
My mining shares are going up in price but not in value.
Nonetheless, it cheers me up for I am not an economist, and only rarely does the truth break through the veneer of denial osmosed in from the MSM.
Anon.
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