hi guys/gals,
just a little view from a noob (me).
what are the chances of EZ actually "want" to devalue the eur currency, esp Germany? Normally when the rest of the world is having economical problem, ppl tend to buy less = import less = less export for export heavy countries like Germany. Luckily the rest of EZ country share the Eur currency and Germany export did not become too ex for them, however the EZ country are also facing economical issues themselve and will be cuting down on expenses. Other country with the same problems will find Germany's export too ex. Esp with China pegging of their currency to make its export more afforable. So best solution is to devalue it for now to stablise the export. For Germany to give views that is not inline with the rest of EZ, resulting in Eur drop and also helping the new gov to buy time. As helping PIIGS is not a widely accepted idea in Germany at the moment. With time and a vast drop in the Eur currency, the ppl might be more acceptable to helping the PIIGS. This might be the case for about 6 months, till the gov is stable with strong political power to take actions. Likely when most of the world economic is on track to recovery.
The above is just a noob view, enjoy.
Cheers,
eg
just a little view from a noob (me).
what are the chances of EZ actually "want" to devalue the eur currency, esp Germany? Normally when the rest of the world is having economical problem, ppl tend to buy less = import less = less export for export heavy countries like Germany. Luckily the rest of EZ country share the Eur currency and Germany export did not become too ex for them, however the EZ country are also facing economical issues themselve and will be cuting down on expenses. Other country with the same problems will find Germany's export too ex. Esp with China pegging of their currency to make its export more afforable. So best solution is to devalue it for now to stablise the export. For Germany to give views that is not inline with the rest of EZ, resulting in Eur drop and also helping the new gov to buy time. As helping PIIGS is not a widely accepted idea in Germany at the moment. With time and a vast drop in the Eur currency, the ppl might be more acceptable to helping the PIIGS. This might be the case for about 6 months, till the gov is stable with strong political power to take actions. Likely when most of the world economic is on track to recovery.
The above is just a noob view, enjoy.
Cheers,
eg
loss 100k in Forex, up 1k, still have 99% to go!!
