“Europe is in a Profound Crisis” | Europe | Deutsche Welle | — This situation is worsening by the minute and few Americans are aware of it.
The European Union careened into “profound crisis” Saturday as budget talks failed and a two-day summit collapsed into finger-pointing, compounding turmoil over an EU Constitution.
“People will tell you next that Europe is not in a crisis,” Luxembourg Prime Minister Jean-Claude Juncker, who holds the rotating EU presidency, said after a two-day summit ended in acrimony.
“It is in a profound crisis.”
Fundamental differences between Britain, which clung to its long-cherished 5 billion euro budget rebate, and most of its 24 EU partners proved impossible to bridge in a desperate, last-minute round of EU diplomacy Friday night.
Did anyone but me notice that almost to the day when Bill Gates said he was putting is money into Euros that the currency peaked at that point? If this contines the Euro may well slide back down where it belongs much faster than anyone anticipated.
Well, it’s just a fakeish political crisis, really. Who cares about the stupid constitution? For common folks its going to be business as usual. Let the politicians fight each other, heck, I hope they actually kill themselves off.
Anyway, don’t rejoice too much, seems to me the US is also in a profound crisis. If this goes on in 20 years our children will have to learn chinese…
They should just fix the Euro to gold. That would stabilize its value, and any further fluctuations would mean that the other currencies are the ones that are messed up. Their real problem is budgetary. Forty percent of their spending is on agriculture, and they want the British to pay French farmers taking 8 week vacations.
Damn right, literaly no one knows or cares about the constitution so it’s a fake crisis… or maybe not 😛
Time will tell, sometimes small unnoticed events have a great deal of importance on major events on the future.
seems as though it’s not the value of the euro, but the declining dollar that makes the euro look so good.
When the Euro hits 75-cents then see what you think…
While I don’t like the situation in the USA with the Chinese Won/Dollar ratio, but we’ve managed to absorb — or work with the problem. We were the test market for China. We essentially sold out and became middle men for the moment essentially being the straw man in the equation. Now that the Chinese have perfected their technique they can inundate Europe. The only way the EU can deal with it will be to drop the value of the Euro as fast as it can. I see 75-cents faster than expected. Check out the chart above..can you say “free fall?”
And don’t forget that a weaker Euro = more exports.
I don’t buy that a weaker Euro means more exports. Why should changing the unit of measurement change how much people buy? The only thing weakening the Euro does is hurt the little guy who now has money that’s worth less, while the rich can use all sorts of methods for avoiding the devaluation. The same goes for China. Why should they weaken their currency? They have a stable currency fixed to the dollar. Remember how many countries we had to bail out after the IMF kept telling everyone to devalue their currency?
A weaker euro will cheapen their products and thus enabling them to export more, it’s that simple AND the yuan is kept artificially low by the chinese goverment in order to keep labour costs low and attractive to foreign investors.
And remember that Europe is not the center of the universe *pauses to hear millions of French gasps at such heresy* and so it also relies on exports to nations like the USA *pauses again to hear the French gasp again*