Skip to content
Socio-Economics History Blog

Socio-Economics History Blog

  • About

Socio-Economics History Blog

Socio-Economics History Blog

Welcome To The Currency War, Part 2: Massive Euro Devaluation!

June 30, 2012 by mosesman

  • Let me assure you that eventually the Illuminist banksters will QE to infinity. This is of course massive currency debasement. Not only will the Euro collapse, it will trigger a global currency meltdown!
    –
    Welcome to the Currency War, Part 2: Massive Euro Devaluation! 
    by John Rubino, http://dollarcollapse.com/ 
    As everyone knows by now, Greece, Spain and the rest of the PIIGS countries can’t fix their economies because they can’t devalue. If they were still using their old national fiat currencies, so goes the conventional wisdom, they could just mark them down by 30% and instantly see their exports surge and their deficits shrink. Et voilà, they’d once again be fully-functioning members of the global economy.
    –
    But the euro is beyond their control, leaving them with only austerity, which in this context is another word for Depression. Hence all the speculation over radical-but-suddenly-conceivable ideas like a Greek or Spanish exit, fiscal integration with Germany in charge, and eurobonds guaranteed by the eurozone as a whole.
    –
    This is all wasted effort, however, without the final piece of the puzzle: The ECB will have to flood the system with newly-created currency, which is another way of saying that the euro itself will have to be devalued.
    –
    Acknowledging this inevitability, Martin Feldstein, Harvard professor and former chairman of Ronald Reagan’s Council of Economic Advisers, calls explicitly for a euro devaluation in today’s Street Journal: 
    –
    A Weaker Euro Could Rescue Europe  Devaluation is the only way to save the single currency. The only way to prevent the dissolution of the euro zone might be a sharp decline in the value of the euro relative to the dollar and to other currencies. European politicians’ dreams of political union and permanent fiscal transfers are not realistic solutions to the multiple problems of the euro zone’s peripheral countries—especially on the tight schedule needed to halt the collapse of the single currency. The European Central Bank (ECB) may continue to provide additional liquidity, but experience has already shown that it cannot reduce sovereign bond yields to sustainable levels.
    –
    The peripheral countries—Italy and Spain, as well as Portugal, Ireland, Greece, Cyprus and perhaps others—can only remain in the euro zone if they solve four difficult problems. First, fiscal deficits must be permanently lowered to reduce the interest rates on sovereign bonds to levels that can be financed in the long run. Second, economic growth must be revived to create employment and sustain political support for that fiscal consolidation. Third, commercial banks must be recapitalized to stop the deposit runs and preserve lending capacity. Finally, large trade deficits must be eliminated so that these countries are not permanently seeking transfers or loans from foreign creditors.
    –
    Politically difficult decisions could solve the first three of these problems. Less government spending and higher taxes could reduce fiscal deficits. Changes in labor laws and other institutional barriers to productivity could produce stronger economic growth. And sufficient growth would give governments the fiscal capacity to recapitalize their commercial banks.
    –
    read more!

end

Post navigation

Previous Post:

Benjamin H. Freedman: A Jewish Defector Warns America! Non Semitic Ashkenazi Khazars are Not The Jews of The Bible!

Next Post:

Doug Casey on The Coming Euro Crash!

Pages

  • About

Recent Posts

  • Atmospheric Fireball Explosions Worsen in 2020, Incoming Space Rocks Secretly Classified
  • Biden Admin Announces Labeling Trump Supporters Domestic Terrorists
  • Will Biden Complete The Construction Of The New World Order?
  • The Purge (of Christians, Conservatives, Libertarians) Is Here: Tucker Carlson and Glen Greenwald Respond
  • Democrat NGO’s To Direct Military / CIA & FBI In Purge of Conservatives, Christians, Libertarians …
  • The Empire Strikes Back: War For Humanity Enters Final Phase FULL SHOW 1-22-21
  • Persecution for U.S. Christians Could Come Quicker Than You Think
  • Tucker Obtains ‘Shocking’ Internal Email Sent to ICE Officers
  • IMF Urges Govts to “Spend as Much as You Can” | Alasdair Macleod
  • Biden Will Extinguish The Dollar
  • Next Leg Higher Could Take Silver to $50
  • Flashback: Pastor Robert Jeffress Warns Lou Dobbs ‘The Left’ Will ‘Bring Out the Guillotines’ If Trump Loses Reelection
  • GREENWALD: The New Domestic War on Terror is Coming!
  • ‘Death Delivered To The Front Door’ Being Rolled Out In America – Globalist Stooge Joe Biden Again Warns Of ‘A Dark Winter’, Deep State Code Words For A Bio-Warfare Attack Upon America?
  • Antifa Riots on New Year’s Chanting ‘We Got The Guillotine’!
  • “We Want Revenge”: Antifa Anarchists Activate After Biden Inaugurated
  • LET THERE BE BLOOD: Biden And Fauci Team Up To Revoke Trump Policy Protecting The Unborn To Create Massive International US Taxpayer-Funded Abortion Scheme
  • Tucker: None of Biden’s Actions Help Law Abiding Americans
  • Keiser Report | A Very Large Stimulus Package | E1648
  • Silver Price Plummets Because “COVID Is Raging In China”?!

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011

Categories

  • Disaster
  • Economics
  • Endtimes
  • Geo-Politics
  • History
  • Medicine & Health
  • Satire
  • Science & Technology
  • Social Trends
  • Uncategorized

Meta

  • Log in
  • Entries RSS
  • Comments RSS
  • WordPress.org
June 2012
M T W T F S S
« May   Jul »
 123
45678910
11121314151617
18192021222324
252627282930  
© 2021 Socio-Economics History Blog | WordPress Theme by Superbthemes