Tuesday, June 30, 2015

The Euro Crisis
Alasdair Macleod sees the criticality of the Greek crisis as being central to the solvency of the European Central Bank (ECB) itself & therefore confidence in the euro currency .. "The ECB's balance sheet, which is heavily dependent on Eurozone bond prices not collapsing, is itself extremely vulnerable to the knock-on effects from Greece. As the situation at the ECB becomes clear to financial markets, the euro's legitimacy as a currency may be questioned, given it is no more than an artificial construct in circulation for only thirteen years. In conclusion, the upsetting of the Greek applecart risks destabilizing the euro itself, and a sub-par rate to the U.S. dollar beckons."
LINK HERE to the essay

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