May 10, 2010BERLIN, Battered by the Greek fiscal crisis, the euro could weaken to the point of parity with the US dollar, a top German economist said Sunday, as others warned of inflation in Europe's biggest economy.
"As long as uncertainty over Greece and other countries on the periphery of the euro area continues, the euro will remain under pressure," Thomas Mayer, chief economist at Deutsche Bank, told the Bild am Sonntag weekly.
"I think we could soon see 1.20 against the dollar and a further decline in the direction of parity is definitely possible," added Mayer.
On Friday, as volatile markets closed for the week, the euro fetched 1.2755 dollars as investors warned that failure to nail down a credible rescue plan at Sunday's meeting of EU finance ministers could pressure the euro even more.
Meanwhile, other economists warned of the dangers of inflation returning in Germany in the wake of the Greek crisis.
Wolfgang Gerke, president of the Bavarian Finance Centre, said he expected "maybe not hyperinflation, but around three to four percent, caused by high budget deficits."
The majority (52 percent) of Germans fear that inflation could result from the Greek crisis, according to an Emnid poll published Sunday, compared to 45 percent that saw no such danger.
Moreover, nearly two thirds (59 percent) of Germans think Berlin should consider a return to its pre-euro currency, the deutschmark, with one in three believing the euro will no longer exist in 10 years.
For the moment at least, inflation in Germany is under control, with the latest data from April showing prices rising 1.0 percent compared to the same month in 2009.
Canadian Dollar on par with US
April 30, 2010
Spring is in the air and the loons are flying high. No, I’m not speaking of the birds, but our Canadian dollar – the loonie. Our Canadian dollar is valued at roughly the same as the US dollar.
Certainly, many cross-border shoppers see this as good news, but don’t just jump into your cars yet.
The reason for Canada’s strong dollar is that our economy is largely tied to our rich supply of natural resources – oil, minerals and forestry.
As the world’s demand for these resources rise, particularly from booming economies like China and India, they need more loonies to purchase these commodities, driving up its value.
In addition, Canada’s currency is seen as a safe haven given our strong banking system and our government’s sound financial position, compared to other major countries.
Thus, a high dollar is a sign of the strength of our economy.
Canadian companies that buy supplies or machinery from the US benefit from the rise in the dollar because it improves their buying power.
Similarly, our stronger dollar makes imports more affordable, reducing the costs for consumers on much of what we purchase that comes from abroad.
Canadians planning trips to the US, online shoppers, and yes those heading across the border will see their money go further.
On the flip side, companies that export products, particularly our manufacturers, will see their profits shrink every time the dollar rises. This will impact investments and jobs, unless the losses can be recouped by productivity gains and innovation.
And just as its cheaper for us to travel south, its more expensive for tourists to come to Canada, so we will see an impact on our tourism sector heading into the summer months.
So before you think of jumping in your car or planning a trip south, I encourage you all to spend your loonies and take your vacations, here at home
http://riccentre.wordpress.com/2010/04/30/canadian-dollar-on-par-with-us/
Global Reserve Currency is Here - WOCU
snip~
It may sound like a character from StarWars, but starting in Q2 of 2010, the WOCU or World Currency Unit will become the medium of exchange among trading nations. This is welcome news to a world weary of Dollar hegemony and the violent and bloody US imperialism that comes along with it.
REVALUATION SOONER THAN EXPECTED?
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Basket of currencies. This is indeed what the central banks now appear to be working on with the Gulf States moving to a currency valued against a basket of currencies, of course dominated by the US dollar but also including the euro, and perhaps even gold and silver. ~ hmm ...
(Civil And Criminal Probes Launched Against JP Morgan For Silver Market Manipulation @http://www.zerohedge.com/article/civil-and-criminal-probes-launched-against-jp-morgan-silver-market-manipulation)
Mexico is working on plans for a new currency that include silver, while the idea of a Gold Dinar for the GCC has been around for years
*** The Financial New World Order: Towards a Global Currency and World Government
snip ~
A Global Currency
The Phoenix
In 1988, The Economist ran an article titled, Get Ready for the Phoenix, in which they wrote, “THIRTY years from now, Americans, Japanese, Europeans, and people in many other rich countries and some relatively poor ones will probably be paying for their shopping with the same currency. Prices will be quoted not in dollars, yen or D-marks but in, let's say, the phoenix. The phoenix will be favoured by companies and shoppers because it will be more convenient than today's national currencies, which by then will seem a quaint cause of much disruption to economic life in the late twentieth century.”
The article concludes in stating that, “The phoenix would probably start as a cocktail of national currencies, just as the Special Drawing Right is today. In time, though, its value against national currencies would cease to matter, because people would choose it for its convenience and the stability of its purchasing power.” The last sentence states, “Pencil in the phoenix for around 2018, and welcome it when it comes."
