When the Price of Gold Drops Will It Take the EURO With It?
Monday, January 11th, 2010 at
2:43 pm
Comments (1)
Berry X asked:
Euro dollar is based on a combination of gold and the good will of the EU. In 2006 it was $3.50 US to 1 Euro, in 2007 it was $2.50 to 1 Euro, and now $1.28 to 1 Euro even under the rise of gold prices. The fact is that in 2006 and 2007 the Euro lost 30% of its trade being power and 20% of it domestic buying power. In 2008 it lost 60% of its trade being power and 40% of it domestic buying power. This is a sign of a long term decline in Euro economics that has lead Italy to threaten pulling out of the EU.
Euro dollar is based on a combination of gold and the good will of the EU. In 2006 it was $3.50 US to 1 Euro, in 2007 it was $2.50 to 1 Euro, and now $1.28 to 1 Euro even under the rise of gold prices. The fact is that in 2006 and 2007 the Euro lost 30% of its trade being power and 20% of it domestic buying power. In 2008 it lost 60% of its trade being power and 40% of it domestic buying power. This is a sign of a long term decline in Euro economics that has lead Italy to threaten pulling out of the EU.
China has already indicated it will combat its decline in exports by selling its stock piles of commodities and if this happens it may lead the EU in to hyper inflation like seen in Africa.






