Will the Euro par with the Dollar by Q2 2012 or sooner, some believe so, I see that as a possibility myself.
Now the credit rating agencies say they are going to downgrade French debt as they did the US, but why now you ask? Well, because France's exposure to the overall crisis just got compounded by Italy's debt.
France may have some 300 billion dollars of exposure into the Italian banks.
Think about that for a second - the card house is falling, and the analogy of a slow motion train wreck is highly relevant here.
Now then, with this debt downgrade it will hurt France's chances of coming out of this unscathed, this along with an economic slowdown in the EuroZone as manufacturing production and orders have fallen off a cliff.
It's even affecting China now, and soon the US as well.
And don't think US banks don't also have exposure in Europe.
Further, nearly all the banks in Europe are linked to each other in a maze of institutional loans, along with inter-zone industry loans.
So, this isn't looking so good, as the leaders and powers that be sit in committees and negotiate their strategies of what to do next.
Times up, game over, and everyone seems to be out of quarters.
Should we be surprised that run-away social programs and socialist parties within these governments in the European Union are having such serious financial problems? No, nor should we be surprised if they bring down the whole system and collapse what was such an interesting and plausible experiment overall.
Many would say and have been critical that the EU was ill-conceived all along, indeed, I am one of them.
However, I am rather shocked it happened so soon, even more blown away that the same bankers who criticized the US economic policies after our last recession are so impotent, and perhaps incapable of their own challenges in retrospect.
This French downgrade was indeed expected, I even predicted it at a time before the US debt was downgraded due to mere speculation that it might be at some point, which it was by S&P.
What I found rather laughable is that the credit rating agencies didn't downgrade France at the same time.
France is in a somewhat unique situation due to its very heavy handed tax structure, as it is actually managing its debt, but that of course was before, because now French banks and their exposure to Italian banks, and other problems in the event of a cascading avalanche of EuroZone nation-states is something no credit rating agency can overlook now.
Please consider all this.
Now the credit rating agencies say they are going to downgrade French debt as they did the US, but why now you ask? Well, because France's exposure to the overall crisis just got compounded by Italy's debt.
France may have some 300 billion dollars of exposure into the Italian banks.
Think about that for a second - the card house is falling, and the analogy of a slow motion train wreck is highly relevant here.
Now then, with this debt downgrade it will hurt France's chances of coming out of this unscathed, this along with an economic slowdown in the EuroZone as manufacturing production and orders have fallen off a cliff.
It's even affecting China now, and soon the US as well.
And don't think US banks don't also have exposure in Europe.
Further, nearly all the banks in Europe are linked to each other in a maze of institutional loans, along with inter-zone industry loans.
So, this isn't looking so good, as the leaders and powers that be sit in committees and negotiate their strategies of what to do next.
Times up, game over, and everyone seems to be out of quarters.
Should we be surprised that run-away social programs and socialist parties within these governments in the European Union are having such serious financial problems? No, nor should we be surprised if they bring down the whole system and collapse what was such an interesting and plausible experiment overall.
Many would say and have been critical that the EU was ill-conceived all along, indeed, I am one of them.
However, I am rather shocked it happened so soon, even more blown away that the same bankers who criticized the US economic policies after our last recession are so impotent, and perhaps incapable of their own challenges in retrospect.
This French downgrade was indeed expected, I even predicted it at a time before the US debt was downgraded due to mere speculation that it might be at some point, which it was by S&P.
What I found rather laughable is that the credit rating agencies didn't downgrade France at the same time.
France is in a somewhat unique situation due to its very heavy handed tax structure, as it is actually managing its debt, but that of course was before, because now French banks and their exposure to Italian banks, and other problems in the event of a cascading avalanche of EuroZone nation-states is something no credit rating agency can overlook now.
Please consider all this.
Source...