Just when we thought it could not get any worse, the Hungarians popped up last week with the new government stating that the previous government had vastly understated their budget deficit. “Greece no. 2!” the market screamed and EUR-USD promptly dropped 3 cents to trade below € 1.20. The panic then spread to the
Yesterday the Hungarians said they had been misquoted but the damage had already been done. Banks once again are parking billions of Dollars & Euros every night with their own Central banks rather than lend them out to the market. This is a worrying sign as this liquidity is vital to keep the global economy moving and if the banks stop trusting each other what hope is there for the rest of us?
Back to Europe and the
When you couple that with the fact that the US deficit is expected by 2015 to swallow up most of US
Let me share a tale told to me by a colleague this week – He had just returned from a trip to the Middle East and
Mark my words, the west is going to face years of painful readjustments job losses and strikes.
And it is still not out of the question that the Euro as we know it could change rapidly and may even disappear in the next decade as the anaemic growth in
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