Friday, 30 January 2009

Euro in a downward staircase pattern - not good

There are a lot of problems mounting up for the Euro-zone.
Yesterday France came to a standstill in a day of protests – even tear gas used in Paris last night.
Ireland is unraveling – downgraded public debt, real estate plunge – latest joke is - What’s the difference between Ireland and Iceland – one letter and about six months.
On a similar note - What’s the capital of Iceland? About $3.95.
Greece is in disarray – Berlusconi is a very opportunistic politician – keeps hinting that Italy would be better off outside the euro.
Interestingly sterling is finding a bit of bid whereas the euro isn’t. Some are even suggesting that nervous Europeans are looking at moving into sterling because of scares about the possibility of a crisis in the whole framework of the European Monetary Union – officially what keeps the whole single currency afloat.
Perhaps some of these issues are being factored into the price of gold which is looking more likely to head back to $1000 an ounce again.

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