SUBSCRIBE TO FEEDThe end of the euro eminent
Just as the euro was reaching record highs, thanks to the announcement that nearly 1/3 of China’s U.S. dollar currency reserves are counterfeit, another bombshell dropped. The European Monetary Union is breaking up.
This comes as a huge shock to most investors and analysts, who were certain that the euro zone had weathered the crisis brought on by the Greek debt rating debacle. However, it turns out the political acrimony goes deeper.
Greece announced its intention to pull out of the monetary union and look elsewhere for help, since the EU’s lackluster efforts of a few weeks ago. Greece had hoped that Britain, a fellow member of the E.U. but not in the euro zone, would help, but a debt downgrade for Britain has scuttled that thought.
With the defection of Greece, Portugal soon followed. Austria, Italy and Luxembourg have also followed, and other countries are rumored to be considering pulling out. Nicolas Sarkozy may have no choice, as the French public is insisting the France return to the use of the franc.
It will be interesting to see who goes next. Or it would be interesting if any of this were true. But none of it is. Happy April Fools’ Day!
See AlsoTrade the Euro in Forex TradingEuro zone alive and well.
