Is Greece About To Get Greased? The Euro Drops To A Six Month Low Against The Dollar.

Euro versus dollar chart


We were writing of the coming strains of the Euro when the entire world was writing of the demise of the dollar. And, of course, we were writing of the dollar as one of our two favorite investments to be held during the coming storm. The other being the yen. At that time, Peter Schiff, Jim Rogers, Marc Faber and many others were talking of an imminent collapse of the dollar. Faber even when so far as to call the Euro a legitimate or hard currency as opposed to the profligate dollar. Now, I have little regard for Schiff or Roger's investment or economic abilities (they both got one thing right in a world of countless crises and supposedly lost enormous sums of money for their clients in the process.) but Faber is another story. I have great admiration for Marc Faber but as we have shown through countless posts, his views of the world are quite inaccurate in many regards. That also includes the yuan which we have obviously been bearish on for ages. We were again a first to remark that the yuan would be devalued not rise in value. A position that was the lone contrary voice in the forest at the time. Still a lonely position but a few savvy voices are now chiming in with a similar perspective. All in due time. First we have have to let political idiots and their partners in crime, central banksters play their hands of pissing away the people's money and more economic lunacy before much of this plays out.

"Policy does not allow a choice between depression and no depression, but between depression now and a worse depression later: inflation pushed far enough would undoubtedly turn depression into the sham prosperity so familiar from European postwar experience, and would, in the end, lead to a collapse worse than the one it was called in to remedy." -- Joseph Schumpeter, one of the greatest economists to ever grace the profession

Greece's finance minister remarked this week that it won't leave the European Union. I think we know what that means. That means just about the same thing as what Iceland's political idiots remarks meant before their currency imploded. Politicians talk a lot, know very little and have even less control of situations like this. I don't care if you are magna cum laude from Harvard Law School. Contrarily, often actually because you are magna cum laude from Harvard Law School. The only way out of this crisis is for a politician to acknowledge their inability to solve the crisis and return the economy to the people. Something we have talked about before. Something Alan Mulally at Ford understands. Something very accomplished and egotistical people have a very, very hard time understanding let alone doing.

Once a single country leaves the Euro, it's more than likely all over. Spain and Ireland should have left long ago. As should any or all of the eastern European countries. Portugal and Italy as well. The EU is an ill-thought, ill-planned union cobbled together by political idiots outside of the direct voting and control of the citizens of European countries. Citizens voted for EU approval because they believed the political bullshit fed to them by their own political idiots. When will humanity ever learn that politicians are nothing more than bureaucrats who seek adoration and power to feed their personal ego? Only when we see the infrequent leader in a political role is there an exception. The European Union was never meant to empower the people of Europe. It was meant to transfer sovereignty to those who seek to dominate our lives - political idiots.

The European Union remains in very, very serious trouble in my estimation. Will it completely fail? We shall see. But any talk of a single currency across the globe is absolutely preposterous. How many times have we heard this put forth by conspiracy theorists? Can you imagine the people of the United States allowing such a dynamic to be implemented? Baahaaa! We are a savage lot with a great love of guns, individualism, a general distrust of authority and a predisposition to believe in conspiracies. Good luck with that one.