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.
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