You'll see it knocking on the door of €0.80 before easter. I had holiday brochures posted through the door this morning, it got me thinking of how many travel agents and airlines will be out of business before year end.
Hmmm... when you start hearing that everywhere it makes you start to think at what point does the Bundesbank ahem, sorry, ECB start to get beaten into submission by Siemens, Porsche/VW, Mercedes et al when their sales volumes are utterly decimated?Germany has a fantastic, strong exporting economy, sadly for them their biggest customers are bankrupt, which means as sure as night follows day, they will also be bankrupt. With their welfare system and Eastern Germany on the balance sheet it is just a matter of time.This is a global reset, there are no safe havens, you must stay liquid and move your wealth around if you are not to lose it.
Japan is set to contract at 12.1% this quarter. All due to currency issues. Does any one know what will happen to Germany. I imagine it will be of a very shocking magnitude.
It's goodbye to the European tourist industry aimed at Brits. Even for the people who do travel I can see more of them taking their own food in the suitcase. Some of those average standard European restaurants are now looking very expensive.The UK will benefit quite a bit if more people spend their holiday here. That in itself should boost the exchange rate.
"A weak currency is the sign of a weak economy, which is the sign of a weak government" - Gordon Brown, 1995Well folks, that says it all doesn't it !!!