European currency collapse approaching tipping point?

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GR8TFUL's picture
GR8TFUL
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European currency collapse approaching tipping point?

From an article by Ambrose Evens-Pritchard in today's Weekly Telegraph:

"This is much worse than the East Asia crisis in the 1990s," said Lars Christensen, at Danske Bank.

"There are accidents waiting to happen across the region, but the EU institutions don't have any framework for dealing with this. The day they decide not to save one of these one countries will be the trigger for a massive crisis with contagion spreading into the EU."

Europe is already in deeper trouble than the ECB or EU leaders ever expected. Germany contracted at an annual rate of 8.4pc in the fourth quarter.

If Deutsche Bank is correct, the economy will have shrunk by nearly 9pc before the end of this year. This is the sort of level that stokes popular revolt.

The implications are obvious. Berlin is not going to rescue Ireland, Spain, Greece and Portugal as the collapse of their credit bubbles leads to rising defaults, or rescue Italy by accepting plans for EU "union bonds" should the debt markets take fright at the rocketing trajectory of Italy's public debt (hitting 112pc of GDP next year, just revised up from 101pc – big change), or rescue Austria from its Habsburg adventurism.

So we watch and wait as the lethal brush fires move closer.

If one spark jumps across the eurozone line, we will have global systemic crisis within days. Are the firemen ready?

If you want to read the entire article:

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/4623525/Failure-to-save-East-Europe-will-lead-to-worldwide-meltdown.html

 

 

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strabes
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Re: European currency collapse approaching tipping point?

yes...that's why it's a good idea to short the pound, the euro, and the aussie dollar is in the same situation.  

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Nime
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Re: European currency collapse approaching tipping point?

Right, but the question is what currency to buy. Buying gold is difficult now, at least physical gold one can put in his closet. And gold can't be used in day-to-day operations, so we have to maintain some liquidity in some currency. For now Euro is very good, as our local currency - the Polish Zloty (PLN) - is sinking against it fast. However, when Euro falls appart the fact that Poland still has its national currency might be a blessing.

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Re: European currency collapse approaching tipping point?

I am in a predicament like this too.  I have plenty of liquidity -> though in Euro and Aussie dollars.  Tough decision to make as to what direction to head into.  Where to invest?  Do I leave it in the bank?  Is it still wise to jump on the gold bandwagon?  I don't think so BTW.  Still where to go? I don't know.

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Re: European currency collapse approaching tipping point?

 

Damnthematrix's picture
Damnthematrix
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Re: European currency collapse approaching tipping point?

I honestly cannot believe anyone would speculate on currencies in this current climate.....  Don't you guys have anything better to do?

MIke 

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strabes
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Re: European currency collapse approaching tipping point?

ok, you don't want to protect needed cash for the upcoming deflationary collapse, that's cool with me, but don't tell other people to not do so.  it's the most important commodity in deflation...cash.  your idea of "something better to do" is wrong.  if anybody has assets denominated in european currencies, there is nothing more important right now to enable survival through the depression than hedging against their inevitable collapse with a simple short position.

 

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Nime
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Re: European currency collapse approaching tipping point?
Damnthematrix wrote:

I honestly cannot believe anyone would speculate on currencies in this current climate.....  Don't you guys have anything better to do?

I have an operating business. Our clients pay us in money, to the bank, not gold delivered on donkeys. We pay our staff and suppliers also in money. So I have to stay on top of those things and manage the streams of currencies best I can.

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GR8TFUL
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Re: European currency collapse approaching tipping point?
Nime wrote:
Damnthematrix wrote:

I honestly cannot believe anyone would speculate on currencies in this current climate.....  Don't you guys have anything better to do?

I have an operating business. Our clients pay us in money, to the bank, not gold delivered on donkeys. We pay our staff and suppliers also in money. So I have to stay on top of those things and manage the streams of currencies best I can.

 LOL  It's interesting to hear the differences of opinions on the economy--lots of Chicken Littles screaming it's the end-of-the-world as we know it while right next door are a bunch of piggies busy building straw houses. (Not that I think you're a piggie building a straw house, Nime--you're just doing what you need to do.)

Both poker & Y2K both me important lessons: 1) Don't go all-in unless you've got the stone cold nuts (i.e., you're certain of the outcome) and 2) Things are rarely as good, or as bad, as the media would have you to believe.

A wise person learns from the past, prepares for the future, but lives in & enjoys the present. Those who are doing nothing to diversify, hedge their bets & prepare for the possible changes ahead? Fools. Those who are moving themselves & families to supposed "safe havens" & selling everything in order to stock up on gold, guns, & ammo? Their choices will only be right if the worst occurs.

It seems to me that somewhere in the middle lies the most prudent course of action.

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Nime
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Re: European currency collapse approaching tipping point?
GR8TFUL wrote:

It seems to me that somewhere in the middle lies the most prudent course of action.

Couldn't agree more. Things rarely break down imediatelly, oil will raise in price, not evaporate in an instant etc. However there is one event that makes all possible - war. That is, in fact, the only thing I'm really worried about.

Damnthematrix's picture
Damnthematrix
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Re: European currency collapse approaching tipping point?

Don't have any cash.  Last time I looked there was $6 in my bank account.....  months ago.

We've invested every lst penny into our survival strategy....  and money doesn't figure in it.

Mike 

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Nime
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Re: European currency collapse approaching tipping point?
GR8TFUL wrote:

Both poker & Y2K both me important lessons: 1) Don't go all-in unless you've got the stone cold nuts (i.e., you're certain of the outcome) and 2) Things are rarely as good, or as bad, as the media would have you to believe.

BTW - I really never understood how anyone could really believe all the Y2K crap that was used to sell tons of useless work and projects in IT. I always laughed at all those worried because I knew this was crap all along. But that was easy, Y2K was in my field so I was certain of the outcome based on my knowledge on how the systems were built etc. Not so easy with this thing.

strabes's picture
strabes
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Re: European currency collapse approaching tipping point?

people believed Y2K because a ton of money was pumped into the story to justify more government control, police state mentality, fearful population wanting a "savior"...NWO initiative.

Nime's picture
Nime
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Re: European currency collapse approaching tipping point?
strabes wrote:

people believed Y2K because a ton of money was pumped into the story to justify more government control, police state mentality, fearful population wanting a "savior"...NWO initiative.

Hm... you made me think about it and now I feel it might have been a "test ride" before what we see now. 

You know, one thing that troubles mi about this crisis and everything is that media are now masively pumping pesimism and doom to the masses. And also that permaculture etc. etc. is where NWOists would love to see some of us while wiping out the rest to achieve the population reduction outlined on Georgia Guidestones. What do you think?

strabes's picture
strabes
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Re: European currency collapse approaching tipping point?

could be.  I have no evidence that would be accepted by a court that nwo was behind y2k (though some people claim they have that evidence).  But neither do the people who claim it was just a random thing that happened because people got too excited.  I tend to not think the world operates that way anymore...that just random things takeover mass behavior.  I think those things are orchestrated.  I resisted thinking that way until these bailouts under bush and obama.  It's so obvious now...both parties are in the tank with the banking establishment.  It's pure robbery. They know they're doing nothing to help the economy...it only helps rich bankers.  So this caused me to dig in deeper and investigate the powers behind the parties.  The facts are obvious.  People don't want to hear it, but there are powers behind the scenes.  

strabes's picture
strabes
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Re: European currency collapse approaching tipping point?

hey all, I recommended some trades on this thread.  please disregard...can't believe I did that.  I recommend managing currency risk but I'm not interested in giving trading advice on here.  yesterday was a weird day I guess.  Surprised

Thomas Hedin's picture
Thomas Hedin
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Re: European currency collapse approaching tipping point?

Right, but the question is what currency to buy. Buying gold is difficult now, at least physical gold one can put in his closet. And gold can't be used in day-to-day operations, so we have to maintain some liquidity in some currency. For now Euro is very good, as our local currency - the Polish Zloty (PLN) - is sinking against it fast. However, when Euro falls appart the fact that Poland still has its national currency might be a blessing.

Nime,

I made a video about going to gold that I think you might find interesting.

 part 1

 part 2

 part 3

 Nime, I also have a question.  You say that poland has national currency.  Who issues that currency, and how does it get into circulation?  Does your currency say 'note' on it?  Could you scan a copy of your currency and translate the words on it for me and email me at [email protected] with the picture and translation.  The reason I ask is because I want to know if Poland uses a debt money system.

Nime's picture
Nime
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Re: European currency collapse approaching tipping point?

Thomas: yes, Poland uses debt system and fractional reserve banking. The only key difference from the US is that the National Bank of Poland that issues the paper bills is a government institution and not a private corporation. As to banknotes images you can get them here from the NBP's official site:

http://www.nbp.pl/Homen.aspx?f=en/banknoty/banknoty.htm

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