Will Trump Destroy the Euro?

a reply to: LogicalGraphitti

The title is a secondary for me . I read all his stuff but thought the content was worth sharing .

originally posted by: the2ofusr1
a reply to: jellyrev

Countries have pulled out some very unconventional financial instruments to keep this afloat. Quantitative easing and its european, british, and japanese cousins were experimental policies.

I read or heard someone say that Japan could destroy the USD .They said at present that the US was selling worthless US bonds to the Japanese for worthless money . Its a ruse and cant go much longer .

Every major country can destroy each other. cascading debt being called.

Any major war wipes out all countries. supply chains, just in time inventory.

Any major collapse in a large country's bonds collapses the rest and they all try to sell and watch their balance sheets get wrecked.

a reply to: jellyrev

Any major collapse in a large country's bonds collapses the rest and they all try to sell and watch their balance sheets get wrecked.

That would be true in normal times but we haven't been normal sense the 2008 bank thing . If Japan is the only holder if US bonds then Japan and the US will be the only ones really effected by it I would think . Then again I know very very little about the subject . eta near the end of the piece we get this

The new US Ambassador-designate to the EU, Ted Malloch, gave an interview with Bloomberg on February 5 where he said that he would bet on the euro collapsing and that he wants to “short the euro.” In the same interview he declared there was a “strong reason” for Grexit—Greece’s exit from the Eurozone. Earlier Malloch compared the EU to the defunct Soviet Union, saying the Union needs “taming.” In another interview, Malloch declared that the Euro could collapse in the next 18 months. He told BBC, “I think it is a currency that is not only in demise but has a real problem and could in fact collapse in the coming year, year and a half…The one thing I would do in 2017 is short the euro.” Malloch, it should be noted, is no stranger to EU politics.
He currently teaches as Professor in the business school of the University of Reading, England. Malloch has also served on the executive board of the pro-globalization Davos World Economic Forum in Switzerland and was a Senior Fellow of the Aspen Institute think tank. His remarks about the future of the Euro and of the EU itself are well-calculated. Furthermore, with 17-year veteran Goldman Sachs partner, Steven Mnuchin, as Treasury Secretary, a person who has stated he has no problem labelling China a currency manipulator, the stage seems set for an all-out US Currency War aimed at destroying the Euro.
Make no mistake. I am on record since it became clear that the Euro as a supranational currency above nation states of the EU would become reality back in the mid-1990s, that the Euro idea as conceived then was a disaster in the making for Europeans and for the world. It was a construct by a cabal of European patriarchs around Jacques Delors, Giscard d’Estaing and others, to try to create a giant EU rival to the dollar as world reserve currency. Notably, it was Mnuchin’s Goldman Sachs, beginning 2002, who engineered the dodgy derivatives currency swaps operations that allowed the Greek government to hide the fact its deficits were running 12% or more and not the mandated Eurozone 3%. journal-neo.org...

originally posted by: the2ofusr1
While reading this piece by William Engdahl I couldn't help but think that what the title suggest is very correct . W.E. brings it all together very nicely with a short walk through the history and his behind the scenes inside the belly of the beast so to speak . Make no mistake in thinking he doesn't have the source material or that Trumps words are empty.
The rest I will leave to your leisure to read . have fun ,enjoy ,and to the EU , we feel your pain ...the writings on the wall .cya

I don't want to say a bad word, but since you mention Peter Navarro, (who has had Donald's ear for sometime now), I wll just say bollocks. This is the guy that said VAT is a hidden tarrif, when it's not, it's a consumer tax really, (anybody in between in the main) can reclaim VAT if they are registered and that is a EU directive, and of course there many things not subject to VAT. Generally, it is supportive to the economy especially to fully integrated EU countries for instance. However Navarro likes to talk about it as a hidden tax. However to go with his flow, if for instance,
Potential Chinese customers wanted to buy American goods, they will be subject to VAT at the point of sale, however other taxes like import taxes will/may be applicable as well, enough to make the product too expensive for a rational buyer, nothing to do with VAT. A good trade deal, could ease things, that's something to negotiate, something governments have been doing for years and years.

a reply to: smurfy

I kind of get what you are saying and if it could be argued successfully would completely agree .There is a small possibility that it couldn't because of other issues ,from my limited understandings . The issue that seems to be at the heart of contention is in the treaty its self . The treaty is a internal matter and agreement . The problem arises when you take it external in trying to defend currency manipulation . Its that small crack that the Trump's plan will be launched against and required to make the adjustments upwards of 30% . That is the part that kind of stuck with me that I found kind of odd and out of place as far as making sense of it . A lot of times I use a bit of trust with the author .He is one that I do trust .As well as Paul Craig Roberts or a Micheal Hudson . They break it down and kind of leave it up to their readers to make their own decisions .

a reply to: the2ofusr1

The US has a trick card. The Fed will buy up all the treasury bonds and then cancel them. They already own 2 trillion I believe.

The Euro was a stupid creation, it makes the strong currencies strong but the countries which had a poor financial system are all crumbling from it.. it's pure self implosion on the long run, no wonder you have seen european countries asking for bail outs.

originally posted by: Substracto
The Euro was a stupid creation, it makes the strong currencies strong but the countries which had a poor financial system are all crumbling from it.. it's pure self implosion on the long run, no wonder you have seen european countries asking for bail outs.

Thanks Milos.

a reply to: smurfy

Milos as the guy from Breitbart?

a reply to: the2ofusr1

The EU is currently imploding and will not admit it's faults. Countries are taking back control of their borders and calling for deportation of refugees. Merkel is a Socialist and is unable to understand the futility of trying to impose monetary policies on once independent nations which have lost their ability to print money to save themselves economically.

The greatest risk of war does not come from Trump’s policies, but the collapse of the EU thanks to mismanagement. The EU is inviting World War III because they REFUSE to admit that the refugees have created a huge problem that is tearing Europe apart....the world is turning away from Socialism at breakneck speed, this next few years will see the rise of the nationalists.

a reply to: WilliamtheResolute

I wont say I disagree with you because it sure looks that way but who would go to war and with who ? If the EU breaks apart the the EU can't go to war .If it breaks apart then it only can go back to the countries they were before and most of them can't or wont go to war . So my question is what war ?

No as its on its way to destroying itself!

a reply to: the2ofusr1

Apart from the fact that the continued record high of the German trade surplus is in reality based on our country maintaining top-notch production infrastructure (in contrast to the U.S.) and successful economic policies, it is also worth noting that when foreign secretary Sigmar Gabriel met with Tillerson and Pence last week, they already backpaddled on the Trump/Navarro nonesense comments - and thus the feared éclat didn't happen.
(Noteworthy because the result of this meeting wasn't that much reportet in U.S. media as far as I could find?)

This is the same ridiculous attempt of twisting economic realities that we already know from Jacob Lew, or Timothy Geithner under Obama- and is met with the same response of course.

To requote Holger Görg from the Kiel Institute for World Economy back in 2013, "Germany is being reprimanded for the fact that it's economy is competitive [...] This is like telling the kid at the top of the class to slow down so the others can catch up."

Now - talking €uro,
if the Trump adminstration actually could "destroy the Euro", I think there is little he could do to earn more appreciation amongst the German citizenry, because most people here would like to see the return of their Deutsche Mark... after all the Bundesbank is preparing for the possibility of and immediate end of the currency ever since the '08 GFC (headword: Gold).

If Trump really plans on attacking the ECB though, he might want to pay a visit to the FED... he should consult with Ron Paul first.

I guess the questions are: WHY would Trump want to destroy the Euro and HOW could he do so. People make it sound easy!

For all Europe's woes, the EU remains the biggest economic block with a GDP bigger than the US, noting when the UK jump out that will change.

There is a view that Germany drives the Euro, which is true. Germany is a successful economy. However, soon Germany will find itself leading Europe and fighting for ideological dominance over France. Without the UK the EU may squabble over some key questions, not least the closeness of links to America. Traditionally, France has been anti-American.

It will be complex and prolonged, and Trump is just a blip in time.

Hope so because the 43 year EU experiment is a joke and has caused more trouble than good apart from the fact that it is non democratic and none of its decision making body members are elected!!

a reply to: the2ofusr1
Another liberal trying to stretch the truth in their favor,yes George Soros has been betting against currency for years,.but he gives money to liberals to destroy the world,so it's ok, weak example

originally posted by: the2ofusr1
a reply to: joemoe

The EU will self destruct along with the euro

I don't think you can have one without the other .Or would want to for that matter.

Yes you can, you may not be as informed as you think. The EU is the European Union. The Eurozone on the other hand is countries that use the Euro as their official currency. Not all countries in the EU use the Euro. Seeing as that is fairly fundamental, I'm not quite sure what credibility it adds to anything else in this thread.

a reply to: the2ofusr1

No, anti-EU have and keep on saying that the eurozone economy is underperforming and stagnant, and that's not true. The eurozone economy has slashed its unemployment rate and has had 14 consecutive quarters of growth.

Erik Nielsen (Chief economist of Unicredit Bank) said it very clearly: "I certainly continue to be amazed by the skewed negativism towards Europe. Such views are “mostly based on what seems like superficial attention to the data — or, maybe, to ‘alternative facts’ .”

Job creation for the eurozone accelerated to a near nine-year record in January, while the rate of output growth maintained a 5½-year high.

Despite deep concerns about Italian banks and Greece’s long-running financial crisis, eurozone growth in the fourth quarter of last year was estimated at 0.5 per cent, faster than the US rate. For 2016 as a whole, growth in the eurozone outpaced that in the US by 1.7 per cent to 1.6 per cent.

Focus Economics, which collates economic forecasts, notes that the biggest upgrades to growth expectations in 2017 are in Europe. Even in 2018, when Mr Trump’s tax cuts and infrastructure spending stimulus are expected to have most effect, recent upgrades to forecasts of eurozone growth are on a par with the US.

Financial Times. Eurozone economy quietly outshines the US.

So no, Trump will not destroy the Euro. He may destroy the US dollar but not the Euro. Pessimistic narrative comes from Trump's team (Navarro) and the Brexit campaigners, which are all based on lies (as we can clearly see now).

a reply to: Agartha

If this were poker I'd see you your Erik Nielsen and raise you my Martin Armstrong...

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a reply to: totalperdition

Martin Armstrong isn't an economist.