I am going to quote some comments by
Paul Krugman:
1. “I’m not encouraged by the remarks of some of the leaders, who keep talking about protecting the euro as if speculation against the currency were the problem. Actually, a weak euro helps Europe.”
2. “When countries have their own currencies, they can deal with such shocks, at least in part, by devaluing-..Lacking that alternative, something else is needed. So now we have a euro crisis, which — to me at least — hinges crucially on that very issue. What makes Greek problems so intractable is the fact that there’s little hope for growth for years to come, because Greek costs and prices are out of line and will need years of painful deflation to get back in line.”
Jim Rogers:
1. “ They don’t care if they have a sound currency. This means that they’ve given up on the euro, they don’t particularly care if they have a sound currency, you have all these countries spending money they don’t have and it’s now going to continue. It’s a political currency and nobody is minding the economics behind the necessities to have a strong currency. I’m afraid it’s going to dissolve. They’re throwing more money at the problem and it’s going to make things worse down the road.”
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Ramki
If we do not see a CONCERTED INTERVENTION by the leading Central Banks of the world during this week, we will see the Euro go down directly to the medium term objective of 1.1500 sooner than I had argued recently. Already we have come below the 1.25 low of last week, and that by itself looks ominous. We shall see.