overstatement?

[friend]

The demise of the U.S. economy may be overstated.

Please note:

The Euro traded at 1.2261 U.S. on 5/26/2010.

The Euro traded at 1.2268 U.S. on 4/19/2006.

For further consideration:

The local contagion of "Med" flu is imminent.

European banks have failed to post losses from various international adventures.

International funds are purchasing large shares of "value priced" U.S. equities.

 

[orwellian]

Just because the euro is taking a hit now doesn't mean the U.S debt problems are understated. In fact the U.S is in worse shape than Europe is.
You see the dollar rise against the euro, but what you should be looking at is the price of commodities, especially gold.
And what you say is true, a lot of investors flee to the temporary safety of the dollar. But it's only that, temporary. Brace yourself for the financial storm that is definitely coming.

 

[redrum]

i definitely do not believe it is overstated.

the US has a $14 trillion debt, which is about the same debt to GDP ratio as greece and the other european dominoes that will fall. the difference between the euro nation members and the US is that we can print money.

also take into account our future obligations such as medicare and social security and you're talking $70 to $80 trillion. there is simply no possible way we will ever be able to make good on those obligations. we don't have the economy for it. we will either default(unlikely) or print our way out of it(likely).

throw in that the fed govt controls something like 1/6 of the economy, which is not a good thing for companies that are looking for a business friendly environment. the wealth and superpower status of the US was built upon free markets, which we clearly don't have now.

in short, now is the time for gold/silver. precious metals and other commodities are some of the only ways to really protect the purchasing power of your wealth. stay overly leveraged in cash or cash denominated assets and your net worth will surely go down.

 

[flyfreely]

it sounds like your subject should be "the demise of the European economy maybe understated"?

The demise of the U.S. economy may be overstated.

Please note:

The Euro traded at 1.2261 U.S. on 5/26/2010.

The Euro traded at 1.2268 U.S. on 4/19/2006.

For further consideration:

The local contagion of "Med" flu is imminent.

European banks have failed to post losses from various international adventures.

International funds are purchasing large shares of "value priced" U.S. equities.

 

[orwellian]

Actually the European central bank can print money and they're doing it right now. Which is why the euro is losing value. Individual euro members cannot print money on their own though. Which is similar how it works in the states.

 

[bigbadwolf]

Actually the European central bank can print money and they're doing it right now. Which is why the euro is losing value. Individual euro members cannot print money on their own though. Which is similar how it works in the states.

That's not why the euro is weakening against the dollar. It's because the markets have no faith in the bailout program the Eurozone members have announced. The structural problems -- persistent German surpluses and persistent Club Med deficits (both current account and fiscal) remain. In addition, the details of the "bailout" remain opaque.

You should follow Wolfgang Munchau's column in the Financial Times.

 

[orwellian]

That's not why the euro is weakening against the dollar. It's because the markets have no faith in the bailout program the Eurozone members have announced. The structural problems -- persistent German surpluses and persistent Club Med deficits (both current account and fiscal) remain. In addition, the details of the "bailout" remain opaque.

You should follow Wolfgang Munchau's column in the Financial Times.

I might be wrong but I disagree with that. Of course investors lose faith in the euro if they are going to print the money to bail out Greece. Especially when it's not only Greece that needs to be bailed out but all the PIIGS countries as well.

And can't read his articles because you need to subscribe. He does seem to think that the bailout is a good thing. I strongly disagree with that.

 

[friend]

it sounds like your subject should be "the demise of the European economy maybe understated"?

Many of the Yankee bashers posting here see western cultural and geopolitical dynamics as a simplistic bipartisan affair i.e. Europe vs. the U.S.A. for preeminence. Similarly naive: All of the U.S.'s financial woes have been attributed to its "excessive" and "antisocial" behavior. Well, the American's have in the past and will in the future have to deal with the consequences of their actions.

The question is: Who the hell is going to bail out a weak and decaying, congenitally flawed Europe? America did in WWI & WWII and saved western Europe form certain doom and in the Cold War - did all the heavy lifting to defeat the cause of world domination at the hands of communism.

NEWS FLASH: America doesn't need you, Europe and is looking east, to parties whose economic, cultural and moral values more closely approximate there own. The U.S. has obviously fallen victim to some of its own excesses but remains the greatest capitalistic engine ever known. The regeneration of the American economy is certain. Bet against it and lose.

 

[orwellian]

America didn't bail out Europe after WW2. They lent money to rebuild it. Rebuilding and throwing good money after bad are two completely different things. Also, with Europe devastated and without any industry you exported products that made you to the richest country in the world. Now your industry is in shambles and all you export is debt. The greatest capitalist engine you call it? What exactly is so great about it? You have nothing and the Chinese own you.

Who's going to bail out the flawed EU states? The not flawed EU states of course. Which they are doing and which is why the euro is taking a hit right now. Did you read what we posted at all?

 

[friend]

America bailed out the non-Axis nations DURING WWII with money, bullets and G.I. blood. What history are you failing at attempting to rewrite?