“In Portugal, one in every €8 of economic turnover goes overseas to settle its trade deficit. Rome owed 109% of Italy’s annualized GDP on the latest data.Today the Irish prime minister, Brian Cowen, warned trades union leaders that without public-sector pay cuts and job losses, he may seek a rescue by the International Monetary Fund (IMF).
The comeuppance of the Euro was long overdue, which is why I’ve suspected that the short term prospects of the dollar are better than most give it credit for. In the mid-term, its prospects are 50-50.
In the long term, it’s down. But then, in the long-term, to paraphrase someone, all currencies are dead anyway.