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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: Steve Lee who wrote (98790)9/26/2002 10:24:39 PM
From: Zeev Hed  Read Replies (3) of 99280
 
Steve, agreed, one of the reasons I have been saying that long term, the Euro will fade. Unless Europe "Federalizes", namely has a unified political union as well as a monetary union, it is not going to work. Sometimes, countries have to take drastic measures to lean against the wind to ameliorate economic conditions before they take their Austrian catastrophic mode of resolution. If these are not taken, such countries ma be faced with both internal social unrest, and that is too often taken as an excuse by various forces to instigate inter-nations unrest. Is Europe ready for "Federalization"?

THis state of affair is on element that in the short term will prevent massive decline of the dollar, the two biggest economies after the US (Japan and Germany) are both bigger basket cases than the US, thus despite the US horrendous balance of payment deficit, only a slow and very gradual decline of the dollar could be expected, and with many intermissions of run ups.

Zeev
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