The Other Side of the Euro

In the past few days, I mused in this blog pessimistically about the future of the Euro, but there is a contrary view that should be aired. The European Union is the biggest economy in the world. Over a half billion people, and owning 10,000 tons of gold, substantially more than the USA.  The Euro is a popular currency within the EU. People recall the lack of government accountability with currencies such as the Greek drachma and are happy for the Euro.  Outsiders also. The Chinese are investing heavily in Europe and the Euro, buying the Euro as they dump USA treasuries.

And the charts show Euro strength too. In the past several years, the Euro has dropped off several times, but it can’t seem to break $1.03. It refuses parity with the dollar.