What's happening to the Euro

[Gonsalviz]

The Euro is dying a slow death. This last moves by the ECB and Switzerland did some major damage and it is likely to take a while to recover much at all.

[slipperylobster]

It will go down to the Greek Drachma. Retierees who are paid in EURO, better look for a cheaper country to live

Plus side is that the stairs going up to the 7 Eleven will no longer be congested with Europeans trying to find a cold beer at a decent price.

[micmichd]

I still don't think the Euro will go down beyond the USD, let alone the myth of a European democracy. It's a bad joke that everyone starts bashing the only European PM that takes his promises sincere. But Greece has oil, and a population that might defend Agean islands, and that will be understood I hope. A war for oil will inevitably end up in an economic and environmental disaster.

The Euro was introduced in 2001, not in 1999, by the way.

[Gulfsailor]

I still don't think the Euro will go down beyond the USD, let alone the myth of a European democracy. It's a bad joke that everyone starts bashing the only European PM that takes his promises sincere. But Greece has oil, and a population that might defend Agean islands, and that will be understood I hope. A war for oil will inevitably end up in an economic and environmental disaster.

The Euro was introduced in 2001, not in 1999, by the way.

The Euro was introduced on January 1st 1999. However physical coins and notes were introduced on Jan 1 2002. Please check your facts before posting. It is getting embarrassing.

[sirineou]

What happened to the Euro, is simple IMO

When the world economy contracted, the US government, infused cash in the economy via the different bailout programs to make up for the monies industry was not spending, now we have a 5.6% unemployment rate, sure there is underemployment, but that; true for most countries.

In My market, NYC high-rise construction industry,we are working at capacity, this is pushing wages up.

in contrast, the Euro zone took the opposite approach and engaged in austerity measures, further removing cash from the economy, as a result the Euro-zone unemployment rate as of Dec 2014 stands at 11.4%

Now , Europe is beginning to see the light , one first step is quantitative easing, I suspect there will be other steps to infuse capital in the Eurozone economy.

I hope this will have the desired affect of reviving the European economy, but it will dilute the value of the Euro , this should make European good less expensive and increase exports.

Unfortunately this is not good news for the European expats getting paid in Euros.

[DonaldBattles]

Listening to the crying and complaining and praying poor fools who are like me and don't really understand how and why the money in the world flows like it does tells me that we need to suck it up and shut up as we have no control over what happens. We have chosen to live in a 3rd world banana republic because life here is a hell of a lot better than where we came from. I have been everywhere 2 times and concluded that for me this is the best place in the world to be. Don't worry about fluctuations in your income. This will always be happening. You are not going to starve. Forget this BS and enjoy your life.

[manarak]

Some interesting difference in perception between Greece and other European countries. This does explain a lot...

image.jpg

555

if that's true, it's priceless!

[Aforek]

Unfortunately this is not good news for the European expats getting paid in Euros.

True, but not for europeen countries : l'Oreal, Airbus, german cars are happy, now a strong $ is not good for Mc Donald, IBM,Microsoft, Pfizer, Facebook, Apple ... they are complaining already

[micmichd]

Pardon me, dear Lady or Gentleman.

Do you know what a self-fulfilling propecy is?

Sometimes it may not be so very responsibility to tell the truth (bankruptcy of the Euro zone) in public, but that still does not make it a lie.

So many here like to post about Scam, to me it sounds like the word of the year 2014.

Did it ever come into your mind that "scam" maybe means nothing but unkept promises, and that exactly this is the crux of capitalistic economy?

I guess the Euro will drop down lot (maybe as far as -15pct) because the technocratic Euro Troika will threaten Greece not to grant them any more money unless they give away some of their islands as guarantee. I would kill to protect my land, be glad that as a Farang I don't have any.

By Monday or Tuesday I guess the German government will find a solution that allows everyone to keep face - a 1:1 Euro : US $ solution. At least I hope so, Germany was one of the countries that pushed the Euro really hard, fully aware that

1. the vast majority in Germany never wanted that "currency"

2. none of the Euro zone countries except Luxembourg ever met the well-defined contingency criteria for a stable financial system (Maastricht criteria).

Never mind, Germany took the biggest advantage from the Euro zone countries, and now they can take the risk

It doesn't help when you are making stuff up and presenting them as fact.

1) support for the Euro has been net positive in Germany continuously since 1998

http://www.voxeu.org/article/crisis-and-public-support-euro

Actually there was a net support throughout the euro countries and still is.

2) all countries that adopted the euro abided by the Maastricht criteria in 1999 before adopting the Euro. Only Greece did not, so didn't join the Euro until 2001 (it is debatable what tricks Greece made or were allowed to make to abide by the criteria and adopt the Euro later)

[micmichd]

1. Funny interpretation of a clear statistical trend.

I see support of the Euro has declined.

2. I mean the introduction of Euro cash, of course, in January 2002.

And by that date, it was obvious that no country in the Euro zone except Luxembourg would meet the Maastricht criteria anymore, not only Greece.

[micmichd]

If I look back towards the 2013 to 2015 interval, I can clearly see that

1. bank fees have increased,

2. Euro / THB exchange rates have dropped from 44:1 down to 37:1,

3. so the value of my Euro in Thailand permabently pension dropped,

4. I worked in a bank, but it took them 2 years to pay me, so my labour income from 2013 dropped down to 38:1 end of 2014, whereas bank fees increased.

And I will certainly not let Euro scam economy go away with this.

They still owe me money from 2013, and I want it by the 2013 exchange rate.

Thank you for your kind understanding.

[Jimbolai]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Pardon me, dear Lady or Gentleman.

Do you know what a self-fulfilling propecy is?
Sometimes it may not be so very responsibility to tell the truth (bankruptcy of the Euro zone) in public, but that still does not make it a lie.

So many here like to post about Scam, to me it sounds like the word of the year 2014.
Did it ever come into your mind that "scam" maybe means nothing but unkept promises, and that exactly this is the crux of capitalistic economy?

I guess the Euro will drop down lot (maybe as far as -15pct) because the technocratic Euro Troika will threaten Greece not to grant them any more money unless they give away some of their islands as guarantee. I would kill to protect my land, be glad that as a Farang I don't have any.
By Monday or Tuesday I guess the German government will find a solution that allows everyone to keep face - a 1:1 Euro : US $ solution. At least I hope so, Germany was one of the countries that pushed the Euro really hard, fully aware that
1. the vast majority in Germany never wanted that "currency"
2. none of the Euro zone countries except Luxembourg ever met the well-defined contingency criteria for a stable financial system (Maastricht criteria).
Never mind, Germany took the biggest advantage from the Euro zone countries, and now they can take the risk

There is not much to discuss but l find a solution that allows everyone to keep face - a 1:1 Euro : US $ solution is not going to happen. It will be around $0.80US to 1.00 Euro or eU1.25 to the Dollar. Better yet, drop the Euro and adopt the US$ so you will always know what you got and leave no room monkey business.

[Jimbolai]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Pardon me, dear Lady or Gentleman.

Do you know what a self-fulfilling propecy is?
Sometimes it may not be so very responsibility to tell the truth (bankruptcy of the Euro zone) in public, but that still does not make it a lie.

So many here like to post about Scam, to me it sounds like the word of the year 2014.
Did it ever come into your mind that "scam" maybe means nothing but unkept promises, and that exactly this is the crux of capitalistic economy?

I guess the Euro will drop down lot (maybe as far as -15pct) because the technocratic Euro Troika will threaten Greece not to grant them any more money unless they give away some of their islands as guarantee. I would kill to protect my land, be glad that as a Farang I don't have any.
By Monday or Tuesday I guess the German government will find a solution that allows everyone to keep face - a 1:1 Euro : US $ solution. At least I hope so, Germany was one of the countries that pushed the Euro really hard, fully aware that
1. the vast majority in Germany never wanted that "currency"
2. none of the Euro zone countries except Luxembourg ever met the well-defined contingency criteria for a stable financial system (Maastricht criteria).
Never mind, Germany took the biggest advantage from the Euro zone countries, and now they can take the risk

There is not much to discuss but l find a solution that allows everyone to keep face - a 1:1 Euro : US $ solution is not going to happen. It will be around $0.80US to 1.00 Euro or eU1.25 to the Dollar. Better yet, drop the Euro and adopt the US$ so you will always know what you got and leave no room monkey business.

[SheungWan]

I still don't think the Euro will go down beyond the USD, let alone the myth of a European democracy. It's a bad joke that everyone starts bashing the only European PM that takes his promises sincere. But Greece has oil, and a population that might defend Agean islands, and that will be understood I hope. A war for oil will inevitably end up in an economic and environmental disaster.

The Euro was introduced in 2001, not in 1999, by the way.

Yes, oil, olive oil, moussaka, ouzo, over-priced fish, the Parthenon, Nana Mouskuri and Captain Corelli's Mandolin.

BTW, Syriza PM sincere? Just another populist musical armchair artist in the usual Greek political tradition.

Edited February 3, 2015 by SheungWan

[TommyUK1960]

Xircal, on 30 Jan 2015 - 04:20, said:

TommyUK1960, on 29 Jan 2015 - 11:05, said:

With QE its only going to get weaker. A lot weaker. The Thai baht is no going down any time soon, They just maintained 2% interest rate that created more strength in the Thai baht.

Not looking good for EURO.

The Euro seems to be heading north again: http://www.ecb.europa.eu/stats/exchange/eurofxref/html/eurofxref-graph-thb.en.html

I think it largely depends on what kind of deal is struck with Syriza. I can't see the troika backing down on the debt repayment issue, but they could give the Greeks more time to pay.

In any event, if Tsipras wants the country to remain in the Eurozone, his only choice will be to stay on the beaten path. Either that or get the printing press's rolling to churn out large quantities of drachmas fast.

True for now, Just wait and see it come crashing down, EU project is falling apart and the EURO is going to be worthless very soon.

[TommyUK1960]

Thai at Heart, on 31 Jan 2015 - 15:29, said:

This all goes back to the massive imbalances caused by the Chinese pegging their currency For the last 20 years.

This is going to be the next shock to the financial system when they Un-peg like the Swiss have.