There was a time just a few years ago when it was quite fashionable to talk about the European Debt Crisis. Why, we would wake up in the morning, have a spot of tea, some toast and some eggs, then jabber on until noon of eurocrises and pending doom of “The Old World”.
Around that time, I made a prediction that the euro would trade to parity against the dollar. It wasn’t something I could really trade on, since the only available products were untrustworthy scams and the timeline was long and unpredictable.
Here’s the link to the last time I mentioned the call, back in 2012. I suspended it because the then idiot Tea Party freshmen decided to destroy the credibility of the US government and we were still in the middle of easing programs designed to destroy the US dollar.
But I warned then, the future would be full of sudden shocks where the EURUSD would be prone to collapse and near parity. Well, here we are, with the EURUSD rate just now hitting 1.07 today.
This is the key reason why our markets are so volatile right now; especially true for commodities. Oil doesn’t know up from down specifically. The balance of trade is being thrown off.
This ends with stability of currencies. We don’t need the old EURUSD range back per se. We just need the bleeding to stop so we can find a new equilibrium.
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It’s been awhile since co’s and countries
have competed on quality an innovation.
This massive manipulation of currency is the new theme these days.It will
end when we come up with a global
currency.I want to be in the room during
the negotiation.
Any hope of a global currency, in my estimation, hinges on there not being a negotiation.
You’re talking:
1) bitcoin type currency (not going all that well right now)
2) domination of globe by one country
3) United States of Earth
4) space odyssey
I don’t see after the euro why anyone would want a unified global currency. Do you want a fiscal union with ISIS? Or Russia? Or China?
+ Do you really see the entire world agreeing on such a thing? Too many variables involved to make it happen.
The world in it’s meandering own way is getting smaller.I see one world currency and one national currency kind of like
what is going on in the U.K. right now.
They travel in Euros and buy domestic
goods in pounds.It’s not a fully formed
thought-we need a few Cains on this one- but it should eliminate all this
currency rigging we have going on.
I mean that sounds like the dollar.
Like suburbia it exists as a force in
the rearview mirror
I’m looking outside in a nice suburban neighborhood right now. Big houses and yards, award-winning schools, no crime or weirdos. Sure feels like the present to me.
How is this different from exchanging Dollars for Euros when someone from the US travels to Europe??? Someone exchanging GBP for EUR when they travel to somewhere using EUR isn’t all that telling of anything.
Cain – any thoughts here on ETP? I can’t recall if you bought back into this name, but it is looking mighty tempting after getting punished over the last few months.
I didn’t buy back in. Like the name but it’s not going to be spared just because it’s not a direct price play.