Will the Euro collapse as well?

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johnbryson's picture
johnbryson
Status: Bronze Member (Offline)
Joined: Aug 13 2008
Posts: 54
Will the Euro collapse as well?

While I am pretty clear on the collapse of the USD, I am not quite sure about the impact it will have on other currencies worldwide, and in particular the Euro. My guess is that a collapse of the USD, will cause Eastern European countries to stop exporting to the US, and so they will be forced to default on their debt, thus causing a collapse not just of their own currency but, a major devaluation of the Euro. What do you think? I'd welcome your comments.

Jarhett's picture
Jarhett
Status: Silver Member (Offline)
Joined: Nov 21 2008
Posts: 132
Re: Will the Euro collapse as well?

Every fiat currency in the history of the world has failed.  The Euro is a fiat currency, so by default it will fail.  The only question is when.

Gman's picture
Gman
Status: Member (Offline)
Joined: Feb 11 2009
Posts: 7
Re: Will the Euro collapse as well?

Who says the dollar will be the first to go? We could very well see major strength in the dollar if the weaker Euro Zone begins to have major defaults in the coming months.

Remember, concensus thinking is inflation. The concensus has been wrong so often and for so long, my bet is on a major prolonged deflation.

james_knight_chaucer's picture
james_knight_chaucer
Status: Silver Member (Offline)
Joined: Feb 21 2009
Posts: 160
Re: Will the Euro collapse as well?

I would guess the Euro will collapse. There has been a lot of talk here in the UK about certain countries possibly needing to reinstate their own old currency. (They are unable to devalue their currencies as we in Britain and USA have done, and are paying for it with 20% unemployment.) Also many countries in the east of the EU that are outside the Euro have asked for financial help from those in the Euro.

Michael Höhne's picture
Michael Höhne
Status: Silver Member (Offline)
Joined: Nov 16 2008
Posts: 119
Re: Will the Euro collapse as well?

We have the election to the European parliament on June 7, 2009. And the Irish people have the doubtful pleasure to once again take a referendum on the Lisbon treaty in October 2009, unless it is brought forward. I don't expect anything to happen regarding member states withdrawing from the currency union or even the EU until both elections are done. If the Irish people approve the referendum, then some major changes will happen in Europe:

The Union has exclusive competence to make directives and conclude international agreements when provided for in a Union legislative act:

  • the customs union
  • the establishing of the competition rules necessary for the functioning of the internal market
  • monetary policy for the Member States whose currency is the euro
  • the conservation of marine biological resources under the common fisheries policy
  • common commercial (trade) policy

Member States cannot exercise competence in areas where the Union has done so:

  • the internal market
  • social policy, for the aspects defined in this Treaty
  • economic, social and territorial cohesion
  • agriculture and fisheries, excluding the conservation of marine biological resources
  • environment
  • consumer protection
  • transport
  • trans-European networks
  • energy
  • the area of freedom, security and justice
  • common safety concerns in public health matters, for the aspects defined in this Treaty

The Union can carry out actions to support, coordinate or supplement Member States' actions:

  • the protection and improvement of human health
  • industry
  • culture
  • tourism
  • education, youth, sport and vocational training
  • civil protection (disaster prevention)
  • administrative cooperation

I don't see too much left for the member states here. A bigger country leaving the EU would destroy this plan and while I would cheer loudly if that happens, I don't believe it will. If the Irish vote again is "NO", then I expect major disturbances. But until then everything will be done to prevent such ideas, because the EU agenda is still being pushed.
 

plato1965's picture
plato1965
Status: Platinum Member (Offline)
Joined: Feb 18 2009
Posts: 615
Re: Will the Euro collapse as well?

 

 Came across this video in a Zero Hedge comment today...

  Jim Rogers buying silver? euro coins 10 years ago... love the comments about the french and italians cooking the books...

 

 http://www.youtube.com/watch?v=Bf6mtTFCgwQ

plato1965's picture
plato1965
Status: Platinum Member (Offline)
Joined: Feb 18 2009
Posts: 615
Re: Will the Euro collapse as well?

 

 Dan Hannan in fine form in the EU parliament.. ( the lions den.. ? *grin*)

 

 http://www.youtube.com/watch?v=ti3UcQG0lP4

plato1965's picture
plato1965
Status: Platinum Member (Offline)
Joined: Feb 18 2009
Posts: 615
Re: Will the Euro collapse as well?

 

 Bailing out the euro.. ? Code for central bank collaboration needing a political rubber stamp  ?

 http://www.telegraph.co.uk/news/worldnews/europe/greece/7696870/British-taxpayers-ordered-to-bail-out-euro.html

that1guy's picture
that1guy
Status: Gold Member (Offline)
Joined: Jan 11 2009
Posts: 333
Re: great video

I dont know if this was posted here yet, but it is awesome

http://www.informationclearinghouse.info/article25521.htm

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