We have all heard the doomsday predictions. The Chinese are unloading the dollar. The Saudis will price Oil in Euros. The anti-dollar has arrived. Bye bye American Peso.
But hang on a minute. What are they hanging their hat on ? The Euro ? A conglomeration of dysfunctional Europeans, who can barely stand each other ? The Greek tragedy that is now unfolding is just a precursor of things to come. Wait till we have some real disagreements say when the French unemployment starts peaking just when the German economy is smoking hot. How can economic policy be co-ordinated without a real political union ?
Anyone who invests their life's savings in the Euro because they do not like Obama's profligate policies, are taking a huge risk. It would make more sense to buy the Saudi Riyal. At least that is backed with Oil for some time to come. What does the Euro offer you ? A bunch of Socialists with institutionalized under-employment. There is no military might, no budding superpower, no dynamic entrepreneurship, to back its value. There is no case for the Euro.
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