The € should stop falling in the coming weeks and even jump a few points up, a move that could be quite fast. But later, in the fall, it should sink again even as low as the higher seventies, as the Europeans will panic about the year end deadline ; typically the same phenomenon as the Y2K scare. After March 02, when poeple will realize that they survived the Big Revolution of their life, and as the world will recognize that fact, the € will become somewhat of a competitor to the $. For many, it shall be a preferred alternate. I sense that many Europeans and businessmen around the world want to take a rest from the Almighty Dollar... and also see how America is going to deal with a weakenning $ versus its foreign debt. That could create some huge tornadoes in many places, especially if the US interest rates stay low which can be expected as the whole economic problem, recession, etc will not have vanished into thin air by then.
So on that front also, keep your seat belts tight and try to enjoy the ride... because we are going there-I don't know where-but we are off.
As of today, in some euro countries, three quarters of the populations still cannot quote the value of their national currency versus the €. Now if we expect them to do some math, then you'd better wait for another generation... as many old people in France, and some young ones too, still count the Franc in its old value : X100, a system which became absolete 34 years ago.
So, we'll have fun.
Epsteinbd |
