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The truth about so called Euro Debt Crisis and why Euro is still beating the pants off US Dollar
has been reporting, this article will explain what is really going on in this regard and most likely what will happen to address it and what all this means for average investor.
The truth about so called "Euro Debt Crisis"
"Euro Debt Crisis" is mainly non-sense and really the continuation of the Con Job of the right wing Media/Cabal behind Republicans, so that they can then say:
"US is next if we do not stop Government spending OR If we adopt European style socialized services"
However there is some truth here, but it is not at all what the US/UK (right-wing Media) is telling you. In summary:
1- Near collapse of US economy in 2008, reduced growth world wide and for those
smaller economies that were dependent on growth to service their Bond interest payments, these payments became harder to make.
2- Euro being a very strong currency has put a straight jacket on the weaker economies, such as Greece, who cannot devalue their own currencies, and thus grow their way out of their Bond payments this way.
So "Euro Debt Crisis" is really about Euro being currency of a Union that is not backed by a single Fiscal policy and not about "Euro Debt" per say, all of which FACTS you can see prove by Euro being MUCH MORE valuable than US Dollar still.
Euro is a deeply flawed currency but still beating the pants off US Dollar!
So Amongst all doom reporting from US Media, about "Euro Debt crisis" there is one truth:
Euro is a deeply flawed currency.
Because Euro is currency of a monetary Union with no Fiscal Union. This means
countries that use Euro have different Tax rates, Bond rates, etc. serious lack of monetary Union. This is really crazy when you think about, this means that for example Greece would have to borrow at 8% whereas Germany can issue Bonds at 2%, or Greece has 30% Tax on income over 250K, whereas Germany has 50% and collects it.
With above FACT stated, here is another FACT, a deeply flawed currency Euro is beating US Dollar, given that Euro has GAINED a MIGHTY % against US$ since its introduction in 2000 at 1 to 1 to US$. This is really BEST proof of the fundamental problems of US economy, which are:
1- Lack of something as essential as universal socialized health care, something that would give health care to all Americans while cut health care costs by 50%
2- Our Taxes wasted on One War after another and a Gargantuan Military
3- Plus lack of other social services, such as the fact that in Germany, France, etc. European country you can go to college pretty much for free, free for the Taxes that you pay through your life, whereas same college education in US will cost you an INSANE amount of $100,000 and more, thus saddling you with Debt for years to come even if you get a good Job and God help you if you do not, thus retarding your economic growth and enjoyment of life.
So just think how screwed up USA is, that a deeply flawed currency such as Euro, the currency of a Union that supposedly is having a "Debt Crisis", is still beating the pants off the US Dollar.
This is really the best indication of how fundamentally screwed up USA has been
and continues to be. After all how screwed up can you be that it is 2012 and US does not have something as essential for the functioning of a Modern economy as universal socialized health care (NHS), something that the ENTIRE developed World has, something that the Conservative parties, repeat the Conservative parties, in UK, Canada, Israel, etc. 100% support. And why Conservative parties in entire developed World are 100% for their NHS, it is because in countries that have not-for-profit Government run NHS, health care is taking on average 9% of GDP while in US with Wall Street run for profit health care, 50Mill+ have NO health care, 2Mill+ go bankrupt each year due to health care costs, and health care is taking a DEFICIT busting 18% of GDP.
It gets worst for USA
So here is what tells the World that even a currency as flawed as Euro is better than US Dollar. Because one major party in US, the Republicans are such
lunatics, to actually oppose such sensible socialized services as universal socialized health care (NHS), or socialized college education, etc. as they have in UK, Canada, Israel, Germany, France, Japan, China, etc.
And the other party, although talked about it, they actually never even proposed NHS, set aside pass NHS. And vast part of US Media are such enemy of American people, that they report non-stop lies and lies in opposing NHS and other necessary socialized services, such as they print in their US version, but not their European or Canadian versions, that European, Canadian, etc. are dying waiting in line to get health care because of their socialized health care. Which of course as a European, Canadian, Japanese, etc. citizen with NHS in your country you know to be a total lie and that is again why US Media outlets do not write the same in their European, Canadian, Japanese, etc. versions.
How about S&P downgrades Euro banks
No one in Europe gives a SQUAT anymore about what US firms or Media says. After all a country that is so miserable, because it is mislead by its Media, to have as one of its main parties the Republican lunatics, and as its main Media sources such lying right-wing machines as Talkradio, Fox news, Wall Street Journal, which party and so called News sources are about one Con Job after another, who for example say to anything that is for benefit the American people at the expense of the Wall Street gang, such as having universal socialized health care (NHS) so that all Americans will have health care while health care would cost 50% LESS: "Socialist Socialism Socialist Socialism" when one of their favorite organizations is the US Military which is a 100% Socialized entity,
then a country this miserable, this mislead by its most powerful institutions, has nothing to say that anyone cares about.
And again that is why a deeply flawed currency such as Euro, is still beating the pants off the US Dollar.
What about Greece going bankrupt?
1st, If you were in Greece now you will see that all this doom & gloom talk about Greece is mainly non-sense. As typical restaurants, clubs, beaches, etc. are packed until wee hours of the morning, etc. indication of how Greek are having a great life. So does Greece have some problem, yes they do and it is what Greek called "fakeleki", which basically means a systemic problem of bribing under table, you could actually think of it as rampant capitalism.
So these non-stop negative reporting about Greece "debt crisis.." by US Media is meant to enable the Republican lunatics to then say, See:
"US is next if we do not stop Government spending..."
"Socialism only works until you run out of other people's money to squander..."
etc. Psycho babble
Demonstrating yet again the Con Job Republicans & right-wing Media are playing on American people, FOR:
1- Germany, Norway, etc. European countries whom have lil Debt and much LOWER Un-Employment, compared to US, have much more of a "Socialism" based economies than Greece.
2- In fact main reason behind Greece's debt is that it has not been enough of a "Socialism" based country as other European countries are. To be exact this means that Greece has NOT been collecting Taxes as other European countries do. Although there are other problems specific to Greece, they range from what they call "Fakeleki" to Euro being too strong compared to competing tourist destinations such as Turkey or Bulgaria.
All of which points you can see proven by Euro being MUCH More valuable than US Dollar. Given the FACT of Euro having gained a MIGHTY % vs US Dollar since its intro at 1 to 1 to US$ in 2000. Or by the FACT that while most US Auto makers went bankrupt NOT 1 European Auto maker went bankrupt, etc. Or by the fact that when the real Rich in US, such as Murdoch of Fixed news & Wall Street Journal (LIES), wants to buy a Vila or vacation he goes to Europe and would not be caught dead in US States that Vote Republicans such as Kentucky, Missouri, Tennessee, Oklahoma, etc.
More about what is really going on in Greece and why European economies will continue to MUCH better than US:
What about EU leaders failed December meeting?
Once EU leaders, less UK, decide they are going to finally address the deeply flawed aspects of Euro, which is that it is a currency of a Union that does not have the same fiscal policy, which is insane to put it mildly. After all how in Gods name are the Greek to have same currency as Germany when they have to issue Bonds at 8% to finance their operation when Germany can issue Bonds at 2%! So once EU leaders agree to create a fiscal Union, much like US has, then the deep flaws of the EU will be removed and only thing that will remain are the fundamental problems of US economy, which problems Republican champion and Obama Admin did not address at all!
So here is KILLER FACT you need to realize, should EU address the deep flaws of Euro, then US Dollar will be TOAST vs Euro. That is Euro has gained a MIGHTY % against US$ with its current deep flaws, imagine what will happen after these flaws are addressed! You could then see Eur/USD at 2 which for example means Gas costing Americans $6 per Gallon.
Wont UK block the EU Fiscal Union?
Europeans for long have realized that certain elements in UK wants the EU project to fail, or hobble along, so more and more what UK says matters less and less to the EU leaders. In fact the Veto of Dave Cameron, in late Dec 2011 of the steps toward EU Fiscal Union, made the EU leaders to realize that goals of UK still lay in making sure that a true European Union does not come into play, which Union as per the dream of Napoleon and others in Europe, will in time render UK as the back water of Europe. After all, EU economy is TEN times the size of UK economy.
But in fact, what is more likely, is that UK in time, either under Cameron that vetoed the last EU Fiscal Union proposal, or under a new leader, will support the EU Fiscal Union proposal because more and more UK leaders realize that they cannot anchor their economic future to US given the fact that US is suffering from Republican lunatics and the right-wing Media/Cabal that makes them possible, and as a result US has fundamental problems, with no sign that these problems will be fixed soon.
If we have Universal Nationalized health care we will go bankrupt like Europeans
One of most amazing, but typical, of the Republican and right-wing Media Con Job about the so called "Euro Debt crisis" is that then they will then say, see:
If we have Universal Nationalized health care (NHS) like Europeans we will go bankrupt like Europeans"
The answer to which amazing non-sense is:
1- It is not just the Europeans that have NHS, the entire developed World has NHS, from Canada, to Japan, to Australia, including their beloved Israel.
2- If Europeans were not operating health care on Socialized basis, aka NHS, then their Debt would be much higher. Given the fact that in countries that have NHS, health care is taking on avg about 9% of GDP, whereas in US with no NHS and instead Wall Street run health care, where an astonishing 50Mill+ have NO health care, health care is taking a DEFICIT BUSTING 18% of GDP. So because Europeans have NHS, their spending on health care is reduced by $1-Trillion per year. And that is one of reasons why even though Euro is a deeply flawed currency, it is still beating the US Dollar.
What is the worst that can happen?
As further indication of what a rightwing fear-mongering Media, US Media is consider that 1000s of stories have appearing in US Media asking: "What is the worst that can happen" with the Euro Debt crisis! In regard to this so called question:
1st, Again "Euro Debt crisis" simply means high Bond rates for certain weaker EU economies. The worst of which that can happen is that these countries will default on their Bond payments, which means (mostly) rich Bankers will get a hair cut on their Bonds. So just as when Argentina defaulted on its debt meant squat and in fact as a result of this default Argentine economy did great a few years later, same will happen in EU should Greece default on their Bonds.
2nd, Because Europeans Governments are run by their people for their people (aka Main Street) then EU will do the right thing to avoid the worst and result in the best, contrast to US where Government is run by the Wall Street via their puppet Republican lunatics and HOAX Democrats and thus the worst keeps happening to the American people.
So what will happen?
For Europeans to address the so called "Euro Debt crisis", which again means that certain weaker European countries cannot be in Euro and at the same time pay much higher interest rates on their Bonds than others. there are a few solutions:
1- Euro needs to drop much in value against US Dollar and other major currencies, so that the weaker economies like Greece can than compete against surrounding countries such as Turkey which have much lower priced currencies to Euro.
2- EU members need to create a much tighter fiscal Union, they need to create something tantamount to US Federal Reserve and a central Taxing authority, so that that the Taxes in Greece are same as in Germany and paid to a central authority. Which central authority, in ECB, then would issue and back a Euro Bond so that all EU members would have the same interest rates.
But what you can bet on, is that since EU Governments work for their people (aka main street), that they will make the right decision and will come out even stronger.
So here is what you can Bank ON:
US Dollar will NEVER EVER, repeat for Republican lunatics & right-wing LYING US Media, NEVER EVER, be as valuable as Euro since Europeans are not suffering from Republican lunatics, HOAX Democrats and above all a right-wing Media/Cabal armed with 100s of Billions of Dollars waging War on them.
As a result Europeans have fundamental advantages over US, which simply means Europeans get much more value for their Taxes, due to operating a sensibly more of their economy on Socialized basis and not just Military, Police, etc. on Socialized basis as in US. Such as for example ALL Europeans, like all other developed nations, have Universal Socialized health care (NHS) as a result of which while ALL Europeans have health care, they spend 50% LESS, NOT MORE, LESS, on health care than US! And also Europeans can go to college for nearly FREE, for Taxes they pay, etc. and that is WHY the rest of their Capitalist economy will do MUCH better than US.
And to finish on a light but still relevant note: Great Video by Colbert Report as to what utter lunatics Republicans are by spoofing one of the X-Republican Presidential candidates saying that God speaks to him.
Euro US Dollar exchange rates since the intro of the Euro, showing Euro was introduced at actually slightly less than 1 to 1 to US Dollar
Euro debt crisis is mainly non-sense and propaganda by the right-wing Lying US Media
Cost of health care in countries with Socialized health care vs US showing that while ALL Europeans, Canadians, etc. have health care they spend 50% LESS on health care compared to US that has for profit Wall Street run health care
Margaret Thatchers Conservative party is 100% for their Universal nationalized single payer health care
Greek government debt crisis
Typical right-wing US Media non-sense: "Euro, preview of what may happen in US"
UK approves $50 Billion Dollar High Speed train project
Argentina's debt restructuring: A victory by Defaulting on the Debt
Harder for Americans to Rise From Lower Rungs than Europeans, Canadians, etc.
Another prediction by the right-wing Media/Cabal that Euro will collapse in 2 years
HOW long do they have to be wrong for American people to realize how wrong they are?
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