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by Ashraf Laidi
Posted: Feb 20, 2010 5:00
Comments: 30765
Posted: Feb 20, 2010 5:00
Comments: 30765
Forum Topic:
EUR
Discuss EUR in this thread
last weeks show about to start again or what???
Equities in green heaven and usd getting some strenght...
any explanation?
If indeed counterparty becomes a dirty word, and people won't trust gold ETFs/GoldMoney/Perth Mint Depository or any other custodial facility, the problem is that the minting and refining industry as a whole does not have the production capacity to meet retail/mass market demand for coins and bars in my view. Look forward to high premiums and/or rationing of production.
Fiat money has no intrinsic value (unless it is a gold receipt)
The state can fix the 'value' of the currency, but this leads to big big big problems, remember the fixed European Exchange Rate Mechanism?
Without this I believe that the rough value of fiat currency is the physical wealth of a nation (however you measure that, also remembering that the STV theory means the value is different to everyone) divided by the amount of fiat in circulation.
A REALLY simple if a nations wealth amounts to '1000 oranges' and the total amount of money in circulation is $10000, then $10 could be said to be worth 1 orange, though if the amount of money in circulation is increased, the value decreases obviously.
Not very scientific but there you go.
be constant ... but constant relative to what? Obviously relative to indispensable, essential, absolutely necessary, so a valid expectation is value of gold is constant relative to cat food.
Consequently thinking further this idea is questionable. If paper money becomes illiquid then there cannot be any production of cat food. So the value of gold is nil.
In short the value of gold is only then determinable if and only if paper money is a liquid asset.
this minute
(AP:ATHENS, Greece) Near-bankrupt Greece's borrowing costs fell sharply Monday and stocks rallied after the European Union unveiled a $1 trillion plan to contain the continent's spreading debt crisis and boost the euro.
The difference between yields on Greek 10-year bonds and their benchmark German equivalents was at 4.72 percentage points, down massively from a record 10.25 points on Friday. The general share index on the Athens stock exchange gained 9.59 percent in morning trading, reaching 1,786.84 points.
Under the three-year plan adopted in Brussels early Monday, countries from the 16-nation eurozone would promise backing worth euro440 billion ($560.8 billion) for troubled governments. The IMF would contribute an estimated additional euro250 billion ($318.65 billion) and the EU euro60 billion ($76.5 billion).
Separately, eurozone leaders on Saturday gave final approval for a euro80 billion ($100 billion) rescue package of loans to Greece for the next three years to stave off default. The IMF also approved its part of the rescue package _ euro30 billion of loans _ on Sunday.
Last week, global markets suffered big losses and the euro plunged on fears the Greek debt crisis could spread to other weak European economies.
Greek Finance Minister George Papaconstantinou said Monday the agreements meant his country would have no trouble paying off creditors.
"Over the next few days, payment will start of the first section of the loans from the European Union and the International Monetary Fund, so that the country has no problems whatsoever with its borrowing needs and servicing its debt this month, and for months to come," Papaconstantinou said.
Greece was forced to stop borrowing from international markets after the interest demanded by investors to buy its bonds skyrocketed, reaching more than 4 times that paid by EU powerhouse Germany.
The international loans were the country's only shield against bankruptcy on May 19, when some euro9 billion in debt must be redeemed.
In return, Athens announced new painful austerity cuts over the next three years, prompting union anger and violent protests last week in which three people died.
At a cabinet meeting Monday, the center-left government is set to approve key pension reforms, cutting payments and increasing retirement ages.
Before then, President Karolos Papoulias will host a meeting of party leaders on the debt crisis, which left-wing parties are boycotting.
Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Who would have thunk it?
EUR/USD at 1.3060. As mentioned earlier talk of 1.3100 barrier option interest. Euro bulls will be hoping these barriers offer as little lasting resistance on the way up as they did on the way down.
EUR/USD has lifted about 15 points in last few minutes, presently at 1.3060. Talk of a commercial bank in Dublin being notable buyer. I wonder if theyre buying for Central Bank of Ireland as some sort of EU intiative. Just a thought.
while
German Academic Says Considers Appealing Against Global Emergency Aid Package To Stabilise Euro; This headline helped pressure EUR/USD in recent trade up from 13040.
thanks for ur reply..
personally, when there r so many uncertainities about EU and eur..i ll leave IT and trade sthg else instead..there r so many other pairs..to me, very clearly looks usd jpy...especially longs at the moment:-)
as for usd strenght - it needs to take a rest before another spectatcular performance..i mean against majors like eur, gbp...
http://www.bbc.co.uk/blogs/thereporters/robertpeston/2010/05/eurozone_crisis_is_postponed.html
"Eurozone crisis is 'postponed'
Robert Peston | 07:21 UK time, Monday, 10 May 2010 "
[...]
"...So it'll provide comfort to those lending to - for example - Portugal, Ireland and Spain that there's a de facto guarantee from France and Germany behind the IOU's issued by Portugal, Ireland and Spain.
Three important caveats however.
The actual loans and guarantees may turn out to be harder to deliver than the words of comfort from eurozone government heads.
Second, EUR750bn is just over one-year's new borrowing by eurozone members and a bit more than 10 per cent of eurozone government debt. So it's certainly not enough if investors were to start to lose confidence in the ability of some big countries - such as Spain or Italy - to honour their debts.
Which takes us to the import third caveat. In the end, there won't be a cure for the underlying eurozone strains unless and until the record, unsustainable deficits of some eurozone members are reduced in a permanent way."
At 1.3100, which explains dip back from 1.3093 session high. Bit of protection going on. Were presently at 1.3073. So far Libor is still up that will change through the Greek payment process.
We are in Buy buy buy on every dip.