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Merkel almost declares defeat in “War” with Euro Speculators after EU Bazooka Fizzles out

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Merkel and Sarkozy Declared War on Euro Speculators 2 weeks ago when they unleashed a massive $1 trillion bailout for the debt ridden “Club Med’ countries of the European Union.However that War seems to have been decisively won by the “speculators” with the Euro almost 5% lower than when the “War” was declared.The Market is almost at the same level where it was before the Trillion Dollar Bailout was announced.It has led to nothing but more market uncertainity and currency fluctuations.Merkel herself seems confused saying that the “euro was at risk” and then contradicting herself by saying thatĀ  “euro will be stronger after the crisis”.With the tallest leader of the European Union herself uncertain about the fate of the Euro it is no wonder that the Euro keeps falling despite being severely oversold

The central problem as I keep saying it again with the European Union is the centrally controlled monetary policy and seperately controlled fiscal policies .Until that problem is resolved no amount of “wars” or “bailouts” will resolve the European problem.The austerity measures announced by the countries like Spain have resulted in additional pressures on the currency.Amidst allĀ  the uncertainty,one thing that is certain is that there is no simple way out of this monumental mess created by the massive debt creation of the last decade.

Euro slips as Merkel says currency ‘in danger’ – Marketwatch

The euro fell sharply against the dollar on Wednesday after German Chancellor Angela Merkel said the single currency was at risk. Merkel made the comments in German Parliament, a day after Germany announced a ban on short-term ban on naked short selling for some financial instruments including 10 financial stocks. “A failure of the euro means a failure of Europe,” Merkel said, according to Dow Jones Newswires. She also said there were “unforeseeable risks for the world if the euro fails,” but also said the euro will be stronger after the crisis

PG

Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to greensneha@yahoo.in

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