ECB Getting a Little Nervous....
Over the weekend the central bank started its rhetoric around easing the EURO lower. While it is one thing to say this and yet another to do it I don't think that this particular process was ever in doubt. The strength of the EURO is a combination of speculative dumbfoolery and an anemic lack of trend over the past two years.
This has long been in the cards as has the rise of the dollar so this comes as no surprise to a patient trader. It is also why I know that gold is not rising to new highs any time soon.
The falling EURO alone is not the answer to what is ailing the Eurozone which reeks of stagnation and deflation but rather the nanny states that have been brought into existence over the past three decades and the lack of entrepreneurial incentive.
Europe's structural problems won't go away any time soon. These problems have been in place for a long time and have been papered over by rising credit. Demographics alone state the trouble that the European nation finds itself. Other than France there has been no incentives to increase population and the high taxes supporting the older population have stifled any sort of growth.
When you have these elements in place there can be no growth either demographically or economically.
Europe is called the "old world" and it certainly is that. It has become a paper money state which caters the unions and the rich.
I suspect over the next year the chickens will come home to roost.
This has long been in the cards as has the rise of the dollar so this comes as no surprise to a patient trader. It is also why I know that gold is not rising to new highs any time soon.
The falling EURO alone is not the answer to what is ailing the Eurozone which reeks of stagnation and deflation but rather the nanny states that have been brought into existence over the past three decades and the lack of entrepreneurial incentive.
Europe's structural problems won't go away any time soon. These problems have been in place for a long time and have been papered over by rising credit. Demographics alone state the trouble that the European nation finds itself. Other than France there has been no incentives to increase population and the high taxes supporting the older population have stifled any sort of growth.
When you have these elements in place there can be no growth either demographically or economically.
Europe is called the "old world" and it certainly is that. It has become a paper money state which caters the unions and the rich.
I suspect over the next year the chickens will come home to roost.
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