Stephen Russell wrote:

> On Wed, May 19, 2010 at 8:11 AM, Nicholas Geti <ngeti@optonline.net> wrote:

>> Haven't heard much from the U.S. bashers on this list about our financial woes. The 1 trillion to bail out Greece is only going to last one month. Then they are back in the tank. Their debit is now 120% of G.N.P.

>>

>> Here's back at them http://tinyurl.com/2e8ht8q

>>

>> "In some ways European banks are worse than ours. They're certainly less transparent," says our guest Chris Whalen, managing director at Institutional Risk Analytics. "It's a strange time. And I think it talks to the basic lack of competitiveness, the lack of productivity really in Europe. And you also have the same problem in the U.S. We just have the flexibility of being able to print money."

>>

>> "For Europe, basically they have two options: Individual countries can continue to borrow money until they can't. Then they hit the wall," says fellow guest John Mauldin, president of Millennium Wave Advisors and author of the Thoughts from the Frontline e-letter. "Or they can willingly throw themselves into a Depression by cutting their deficits dramatically."

>>

>> "I think the euro's going to parity. The pound's going to parity," Mauldin says. "And we're going to see the yen go to $100, then $125, then $150. Pretty soon we'll get a bid for $200 and $250," which will have huge implications for global trade.

> ------------------

>

> But will China adjust the yuan so you can keep buying more crap?

>

> If I had the time this summer I would totally consider a trip to

> Europe. Euro could be < USD and that is why I woudl do it now. But

> I have to get my mom's house ready for sale. :(

>

And that may be a problem for you Yanks. It seems your economy is

starting to get out of the mess it was in (big debt though, internal and

external), and it would seem Europe is in for a rough ride, not only

Greece but Spain is in some trouble now. Problem with this is that

Germany was pressing to keep Euro up (they've been buying companies

abroad and high Euro favours them) but that will be probably impossible

now, so Euro will go down. That makes Europe more competitive in the

international market and makes the USD less competitive by comparison.

Stephen's reaction might be an example, USD flowing to Europe. How will

this impact on your recovering economy I have no clue.

BTW, now that you are getting out I don't seem to hear Obama's critics

anymore (at least on economic grounds). Plus ca change, plus la meme chose.

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