The Tragedy Of The Euro By Alasdair Macleod

Comments

  • GoldNRollGoldNRoll Posts: 233 Bronze ✭✭✭
    With the soon to burst euro crisis and the yuan not being (yet) an alternative, my guess is that the demand for US dollars will increase making it stronger. Another demand for USD cash will be from European and Japanese holders of US debts defaulting with rising interest rates.

    If the dollar becomes stronger in relation to JPY and EUR, it will be cheaper for Americans to import. So part of the raising costs (revealing malinvestment) in the US economy could be offset by cheaper imports (Trump should drop off tariffs). If tariffs are dropped, US may profit from worst crisis in other parts of the world. US would return to the status of net importer, Europe being the new China.

    In this scenario, this crisis may not be the end of the fiat money. It would be just the end of the euro and the dollar will be the new king. Gold money is quietly rising in Russia and China.
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