Tuesday, 15 May 2012

What to do with your Euros...

So. You're a moderately wealthy Greek person. Do you keep your money in a Greek bank, in Greece or do you make sure all your Euro notes are printed in Germany, where your bank account is and open an offshore £/$ account?

The Euro, a poor idea, badly implemented.

That's right, you get your money as far away from Greece (and the risk of being told one day "you're now holding Drachma") as you can.

Now imagine you're Spanish, Portuguese, Irish or Italian. You have a bit more time, but the result is the same - any money you have gets out of the country if you've any sense.

No bail-out can replace the money flooding out of these countries. The people have lost faith in the Euro project, and as confidence is the only thing underpinning a fiat currency, the Euro has already failed its first test. Even strong German GDP numbers are evidence of the flood of money from the periphery to the core not the underlying strength of the German economic model. Germany rigged the system in its favour, and is now parasitically sucking money out of its empire, an Empire even the German people never wanted.

Is there anyone NOT shorting the Euro right now? I don't think even the most pessimistic Eurosceptic expected to be this right, this soon.

Now my standard prediciton is that political will can see the Euro hold together at great cost to the wealth and living standards of the people, particularly in the periphery. I am becomming less confident they can pull this off by the day and the rise of the Anti-Austerity left means even the Iron political belief in the project of "ever closer union" is waning.

So, to hedge the Euro's demise, buy* banknote printer De La Rue.. It's going to be a bumpy ride.

*Doesn't constitute financial advice, this may not be suitable for your circumstances. Past performance is not a guide to future performance. Stocks and the income from them can go down as well as up, seek advice from a professional advisor, yadayadayada.



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