So much has been made about the Euro and how it was supposed to be the alternative global currency or even new reserve currency. What a load of crap hahahahahahahahahaha.

The Euro is just another fiat currency like any other. In one regards it is even poorer than others because it is the common currency of numerous nations with different languages, social structures, customs, ideologies, industrial bases and economies.

The Euro always struck me as one of those spins where 2 or more companies who are performing badly because of poor management, poor business model or just no potential get together and merge. It is spun that through economic efficiencies such as reduced management costs these companies that were dogs individually will all of a sudden become stars. Unfortunately the reality is that merging poorly performing companies does not address the root cause of the problem and is akin to merging 3 piles of cow pie together and expecting to somehow get T-Bone. What you get is just a larger cow pie ahahahahahahahahahahahahahahahahahaha. Unfortunately many investors fall for this spin and temporarily the stock outperforms, then reality kicks them in the face. Just ask any Nortel investor about this.

The Euro is no different. A bunch of countries got together and consolidated structurally unsound, German Mark included after the reunifacation costs, currencies into another pretty package. This bought the Euro countries some more time by hiding inflation effects and temporarily increasing investor confidence in its use. If the Euro had not been introduced then the problems you are seeing occur now in Europe with Greece, Irland, Spain etc would have occured years ago and negatively impacted the faith in all paper currency. The Euro did not only buy time for Europe but for other non European countries as well. The Euro will now collapse alongside all the other major currencies and be replaces at least for international settlement again by gold or gold backed common currency. This is the only way to iron out the structural imbalances between countries in there trade and start repairing a diseased system.

All in my honest opinion of course.

F.F.