|
| On one side there are folks thinking the European countries can cooperate.
On the other side (folks my age) may be of the opinion, their historical record suggests this might be difficult.
What those of us in agriculture SHOULD BE CONCERNED about...(fast forward a week or two or more) follow the potential money flow. Germany has a positive trade balance ...they will earn considerable benefit from this cheaper EURO versus their screaming about it......in the meantime the PIIGS will have a very difficult time in attracting capital flows...will Germany wish to risk their trade surplus for this???
The President yaps about US exporting our way out of this deal.....China wants a stronger Euro ....I suspect they are buying the Euro hand over fist...everyone wants to export....trouble is exports are a zero sum game....everyone cannot increase exports..it is impossible....therefore who is going to get the big kick in the groin? Someone will need to print more money (look in mirror) or we may well hold the big lollypop.
Money flows (debits & credits) do balance....German will not want to lose....the PIIGS need to devalue.....the slide in the Euro hurts China.....the strong dollar will (has) hurt us......
ALSO, throw in the possibility of a complete currency rejection suggesting putting corn wheat & beans in small bags & trade for goods & services.
PLAN A a sharp downside gap in the stock market friday am.
PLAN B A higher open in the stock market & a BRISK SELL OFF
PLAN C a sharp downside gap in the stock market followed by a sharp gap filling rally...
Only the shadow knows (I've been watching too many old movies). | |
|
The Tricky Part Ahead
