Dec. 7, 2011 -
PRLog -- It seems that the endgame for the Euro is rapidly approaching. A new treaty only including 17 of the 27 Eurozone members seems to be the current solution to saving the multinational currency. Countries that are not including in the new treaty will have to revert to their former currency. It's likely that Italy, Greece, and possibly Spain will fall back to using their Pre-Euro currency. This is an interesting twist when it comes to Forex trading. The practical solution is of course the reduction of debt which can only come through bailouts and austerity measures.
Recently, Greek citizens began withdrawing money from their accounts which in reality furthers Greece's problems by pulling out liquidity that enables banks to create loans. This action by Greek citizens further weakens Greece and put an increasing strain on any economic growth that could come out of the ability for the banks to lend to new and existing small banks. Speaking of the common European, no German citizen will accept a bailout of the broader Eurozone. Feelings like this are causing small flare ups in Nationalism. Parallels to WWII are not so few and far between but the possibility of war is still quite slim.
We will continue to monitor the situation in Europe as it develops. We will be keeping a close eye on the ECP and the upcoming EU Summit.
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