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View Full Version : Greece to Leave Euro Zone on June 18: Wealth Manager



Hawkgirl
05-29-2012, 07:02 PM
Greece will leave the euro zone on June 18 if the populist government wins the country’s elections on the 17 as the rest of the euro zone rounds on "cheaters,"

“The euro zone is a club but you get cheaters who get away with it until everyone finds out and at that point you need to remove them otherwise everyone will cheat. It’s better for Greece to leave,” Dewhirst said.

“The basic question is that a German has to increase working from 65 to 67 and that is to pay for Greeks retiring at 50.

http://www.cnbc.com/id/47587509

Hey Barry, this is what happens when you run out of other people's money.

Rockntractor
05-29-2012, 07:13 PM
Now the question is will the Euro continue to fall, will they take down US currency if they do fall, or will it help us?

Hawkgirl
05-29-2012, 07:28 PM
Now the question is will the Euro continue to fall, will they take down US currency if they do fall, or will it help us?
Spain and Italy will follow. Along with Portugal and France. I see a break up of Eurozone in the near future and each country will have their own currencies once again.
In the short term, the destabilization will worry US investors and we'll see a negative impact. In the long term, it will be good for us.

Rockntractor
05-29-2012, 07:39 PM
Spain and Italy will follow. Along with Portugal and France. I see a break up of Eurozone in the near future and each country will have their own currencies once again.
In the short term, the destabilization will worry US investors and we'll see a negative impact. In the long term, it will be good for us.

I have self proclaimed experts on other forums that try to tell me the Euro is stable and will do better in the near future and distant future than the dollar, I have strongly disagreed with them.

fettpett
05-29-2012, 08:28 PM
I have self proclaimed experts on other forums that try to tell me the Euro is stable and will do better in the near future and distant future than the dollar, I have strongly disagreed with them.

HAHA, they are idiots. 5 years ago, they were right, today...no...Germany will pull out before it takes down it's economy. Fortunately for the English they didn't switch to the Euro and kept the Pound so it won't affect them nearly as much as it could

Odysseus
05-29-2012, 08:59 PM
Spain and Italy will follow. Along with Portugal and France. I see a break up of Eurozone in the near future and each country will have their own currencies once again.
In the short term, the destabilization will worry US investors and we'll see a negative impact. In the long term, it will be good for us.

I think that it will be the other way around. The initial instability will make the dollar attractive as a reserve currency again, despite the inflationary policies of the Fed. However, the resulting instability in Europe will drive up the costs of everything that we import from there, and will reduce our exports.

Hawkgirl
05-29-2012, 09:06 PM
I think that it will be the other way around. The initial instability will make the dollar attractive as a reserve currency again, despite the inflationary policies of the Fed. However, the resulting instability in Europe will drive up the costs of everything that we import from there, and will reduce our exports.

Every time Greece or Europe announced bad news in the last several months, the Stock Market sinks by triple digits. It will initially cause chaos as investors won't know how to react. Once the Euro crashes and countries regain their autonomy so to speak, we will stabilize and the dollar will once again be king.

Hawkgirl
05-29-2012, 09:09 PM
I drive up the costs of everything that we import from there, and will reduce our exports.

Most of our imports come from China, not Europe. I may have to pay more for my Barilla brand pasta and imported Reggiano Parmiggiano, but I will survive.:cool:

Rockntractor
05-29-2012, 09:13 PM
Most of our imports come from China, not Europe. I may have to pay more for my Barilla brand pasta and imported Reggiano Parmiggiano, but I will survive.:cool:

I buy French's mustard!http://planetsmilies.net/confused-smiley-17418.gif (http://planetsmilies.net)

fettpett
05-29-2012, 10:12 PM
Most of our imports come from China, not Europe. I may have to pay more for my Barilla brand pasta and imported Reggiano Parmiggiano, but I will survive.:cool:

while true, disruption in the Euro zone will have a bad effect on American Exports as the lower our dollar is the more of our Exports are sold as they are cheaper to buy, according to this

http://www.decisionsonevidence.com/wp-content/uploads/2012/01/Where-do-US-exports-go.png

almost a quarter of our exports go to Europe

Hawkgirl
05-29-2012, 10:26 PM
while true, disruption in the Euro zone will have a bad effect on American Exports as the lower our dollar is the more of our Exports are sold as they are cheaper to buy, according to this

http://www.decisionsonevidence.com/wp-content/uploads/2012/01/Where-do-US-exports-go.png

almost a quarter of our exports go to Europe

I was responding to Ody's import post. I didn't think we exported ANYTHING..lol

Rockntractor
05-29-2012, 10:52 PM
I was responding to Ody's import post. I didn't think we exported ANYTHING..lol

We really could use a source and a date for the graph, a link would be nice.

Starbuck
05-29-2012, 11:47 PM
We really could use a source and a date for the graph, a link would be nice.

Ya want a link? A Link!!?? OK! Here's a LINK!
http://4.bp.blogspot.com/_pGZc0zK8JbM/StdYASm10RI/AAAAAAAAAC8/NVfDoOakxxU/s320/sausage_links.jpg

DumbAss Tanker
05-30-2012, 12:08 AM
I seriously doubt it. Recent polling indicates the Greeks would rather have the devil they know than head off into the totally uncharted territory of New Drachmas with no lifeline out of it.

Hawkgirl
05-30-2012, 12:50 AM
We really could use a source and a date for the graph, a link would be nice.

I found this general graph. I don't know how accurate it is.

http://i45.tinypic.com/2ypk7jr.png

The US Government website has percentages by country, but not specifically Europe..and it has every country from A-Z. There are also other graphs about imports but to specific things like copper, oil, medicine.

We probably do get a substantial amount of imports from Europe if you factor in cars, perfume and designer clothes. Germany's Volkswaggen is gaining market share on Toyota. But compared to the Chinese and Canada, I think Europe's imports pales in comparison. Would be interesting to know if anyone can find concrete data.

Hawkgirl
05-30-2012, 12:55 AM
Then there is this...

http://www.nationmaster.com/graph/eco_imp_fro_us-economy-imports-from-us

Rockntractor
05-30-2012, 01:02 AM
Ya want a link? A Link!!?? OK! Here's a LINK!
http://4.bp.blogspot.com/_pGZc0zK8JbM/StdYASm10RI/AAAAAAAAAC8/NVfDoOakxxU/s320/sausage_links.jpg

Okay, now you made me hungry!http://www.smiley-lol.com/smiley/manger/vil-barbecue.gif

Odysseus
05-30-2012, 08:30 AM
Every time Greece or Europe announced bad news in the last several months, the Stock Market sinks by triple digits. It will initially cause chaos as investors won't know how to react. Once the Euro crashes and countries regain their autonomy so to speak, we will stabilize and the dollar will once again be king.

The smart money will have already started moving. The initial chaos will sink the European markets, but the influx of capital to the US should keep our markets a bit more stable. The indicator will be what the dollar does against the Euro over the next two weeks. If it rises significantly, you'll know that it's become the de-facto reserve currency again. If not, watch the other currency markets. If capital begins to flow into Chinese currency, then we're in real trouble.


Most of our imports come from China, not Europe. I may have to pay more for my Barilla brand pasta and imported Reggiano Parmiggiano, but I will survive.:cool:

Most, but not all. Twenty-two percent is significant, especially when you consider that we also export significant goods and services there:

United Kingdom 5%
Germany 4.3%
Netherlands 2.8%
France 2.5%
Belgium 2.2%
Italy 1.5%

Taken together, that's 23% of our exports. Given that our economy is stagnating, any drop in exports would have a serious impact on our economy. Also, remember what happened the last time that currencies in Europe collapsed. The Greeks just put their neo-Nazi party into their parliament for the first time. France just elected a socialist who makes their previous socialists look like Rondal Reagan. Economic instability in Europe inevitably leads to political instability, as extremists come into power.

At this point, the best long term investment strategy in the US is canned goods and ammunition.

Rockntractor
05-30-2012, 09:52 AM
At this point, the best long term investment strategy in the US is canned goods and ammunition.
Especially ammunition or you may be the main course.

Odysseus
05-30-2012, 09:53 AM
Especially ammunition or you may be the main course.

Especially in Japan. :evil-grin:

linda22003
05-30-2012, 11:18 AM
I have self proclaimed experts on other forums that try to tell me the Euro is stable and will do better in the near future and distant future than the dollar, I have strongly disagreed with them.

There are a lot of people "investing" in Iraqi dinars, too. :frown-new:

Hawkgirl
05-30-2012, 05:36 PM
At this point, the best long term investment strategy in the US is canned goods and ammunition.

Do you seriously believe that or are you being funny?

I ask because I take your posts seriously. If you are really stocking up on non perishables..then I should be doing the same.

fettpett
05-30-2012, 07:04 PM
We really could use a source and a date for the graph, a link would be nice.

sorry, it was late, here's the link for the graph

http://www.decisionsonevidence.com/2012/01/china-import-and-export-facts-go-against-conventional-wisdom/

fettpett
05-30-2012, 07:14 PM
Especially in Japan. :evil-grin:

or Minnesota with PCP in your veins

Odysseus
05-30-2012, 11:18 PM
Do you seriously believe that or are you being funny?

I ask because I take your posts seriously. If you are really stocking up on non perishables..then I should be doing the same.

I'm being somewhat funny, but preparation is always a good idea. You should have a few weeks worth of non-perishable food available, not to mention a good pistol for home defense. If things go south in Europe, then things will get chaotic globally, and the things to watch out for are interruptions in oil supplies. Stock up on batteries and have the means to store water if the utilities fail.

AmPat
06-01-2012, 12:07 PM
I buy French's mustard!http://planetsmilies.net/confused-smiley-17418.gif (http://planetsmilies.net)

OMG! What about French Fries? I love those things. :DDsmilie_panic::OhNoes:

AmPat
06-01-2012, 12:18 PM
Do you seriously believe that or are you being funny?

I ask because I take your posts seriously. If you are really stocking up on non perishables..then I should be doing the same.
I have a few weeks of emergency food stored. Most is non-perishable but the rest can be stored long term. I rotate stock also. Having this is comforting to me but my wife seems to be amused by it. She will change her mind if we have to use it. Ammunition is for home protection.

If the trucks stopped rolling for one day, it would be inconvenient locally. If they stopped rolling for three days, it would be catastrophic. Natural disasters can trigger this like floods and earthquakes. Look at what a simple snowstorm can do.

Man made disasters like the Obama administration trying their best to destroy the economy is another issue. Look at energy. Oil cost is directly related to every other cost. If the truckers cannot afford to fuel their rigs, they park them.

Money supply. If it fails, who is going to deliver/stock/sell food? Who will work at the power and utility plants?

Not to scare you, just be prepared.