Today somebody in the chat forum tried to politely say I was biased towards the Euro and hence could not see with clarity. I would say, first I am contrarian and will rant about things.

But secondly and more importantly, I am trying to point out the hypocrisy.

First let’s start with the Greek crisis. The media was saying, the crisis will take down the Euro zone. I was one of them.

Greece’s debt crisis is the biggest credibility test the euro zone has faced since the single currency was created.

Neither measure makes economic sense. But failure to enforce the rules on Greece could harm the credibility of the euro zone.

The Eurozone with the IMF came up with a bailout package for Greece, and Greece introduced the austerity measures. So the problem is Greece and only Greece, right?

George Soros, the international financier, said at the weekend that he thought Greece would recover but cast doubt on the future of the euro. “The euro is being very severely tested because its construction is flawed. I think Greece will survive for various reasons, but it still leaves Spain and the other countries.”

Now is that not interesting Greece is getting solved and the market decides to change the location of the goal posts. They move it to Spain and Portugal. So then the Eurzone decides to tackle the overall Euro problem. And Germany even approves it.

The German government says it has approved the country’s contribution to the $1 trillion emergency rescue package to stabilize the euro currency.
A government official said Tuesday that Germany is expected to contribute at least $157 billion to the debt rescue measures.

So what does the market say?

The euro fell on Tuesday as the relief rally unleashed by an emergency aid package to prevent the spread of a euro zone debt crisis dissipated and the focus switched back to structural problems plaguing the bloc.

Ah so its not a Greek problem, not a German support problem, it is a “structural problem”. Is that not interesting, now let’s look at the structural problems of say the US and UK. Remember my graphic.


Let’s look at the structural problems of Europe shall we. Interesting that the EU bloc has less structural problems than say the UK, and USA. Yet not a peep, whimper or comment on those places. Heck the UK and USA are triple A rated bond countries.

This is the hypocrisy of the market. So what is the cause of this? Very simple as in Sherlock Holmes said, when all of the answers have been eliminated only what remains is the answer no matter how ludicrous.

A February 8 dinner is sparking controversy because one of the nearly two dozen topics discussed during the program was how hedge funds could profit from a decline in the euro, one of the world’s most heavily traded currencies.

The dinner adds to the growing perception among the general public and some political leaders that many hedge funds prosper by making money off misery — whether it is betting on the decline of a stock, a bond, a currency or even a country’s debt.

If I may add one last point:

Der Chefökonom der Bremer Landesbank, Folker Hellmeyer, führte den erneuten Kursrückgang des Euro auch auf das Wirken von Spekulanten zurück, «die nicht bereit sind, kampflos das Feld zu räumen». Er gab allerdings zu bedenken, die Euro-Zone gehe das Thema Staatsverschuldung als einzige Region aggressiv an und bemühe sich um eine nachhaltige Lösung.

He is saying the speculators are still at work, but what needs to be considered is that the EU zone is the only block that is aggressively considering how to manage its debt.