A question re: the Euro

[X-Spectre]

Ok, with the potential for the Eurozone to split up with the Greece situation and the Euro going to hell in a handbasket. I'm interested to know what if anything our Euro-bros and sister are doing or have done or plan to do to make sure they get through the situation ok. For instance, have any of you converted some cash to American dollars/Yen/Yuan or gold or silver, have you stocked up on non-perishable foods things of that sort. Is there anything you CAN do?

I'm not suggesting that the end of civilization is coming or anything nutso like that but there COULD be some major disruptions that could make life a bit tough for a while. Just interested

[Flippy]

well in my case its nobrainer it dont affect my personal economy since my country isnt part of the euro. Sweden has decided to stay outside the monetary part of EU. It seemed like a poor choice i the beginning but the development lately suggest that we are better of outside it.

[X-Spectre]

well in my case its nobrainer it dont affect my personal economy since my country isnt part of the euro. Sweden has decided to stay outside the monetary part of EU. It seemed like a poor choice i the beginning but the development lately suggest that we are better of outside it.

Thanks Flip, though I think in the long run the uncontrolled collapse of the Euro will affect EVERYONE negatively, including us here in the U.S., my question was more regarding the short-term effects like disruption of commerce and on-time delivery of food and medicine and that sort of thing.

[TheOne]

well in my case its nobrainer it dont affect my personal economy since my country isnt part of the euro. Sweden has decided to stay outside the monetary part of EU. It seemed like a poor choice i the beginning but the development lately suggest that we are better of outside it.

I'm pretty sure our retarded government still want us to join them

[Flippy]

Thanks Flip, though I think in the long run the uncontrolled collapse of the Euro will affect EVERYONE negatively, including us here in the U.S., my question was more regarding the short-term effects like disruption of commerce and on-time delivery of food and medicine and that sort of thing.

it will no dobut effect us here whether i like it or not. Our country live high on export to get income to the state. Even if China is an up and comming tradeing partner we still have most trade within EU off course, and is it stands now with the other european countries arent as willing to trade with us they would be. It isnt just Greece that is in trouble but also Italy, Spain and Portugal are very close to getting into deep crisis.

[Flippy]

I'm pretty sure our retarded government still want us to join them

mhmm.

[X-Spectre]

it will no dobut effect us here whether i like it or not. Our country live high on export to get income to the state. Even if China is an up and comming tradeing partner we still have most trade within EU off course, and is it stands now with the other european countries arent as willing to trade with us they would be. It isnt just Greece that is in trouble but also Italy, Spain and Portugal are very close to getting into deep crisis.

The REAL problem that isn't penetrating to the general public is that China's economy has topped out and is on the edge of trouble itself with a HUGE aging population and a gigantic middle class, they are about stretched as far as they can get as well, they have huge reserves, yes, but those can disappear VERY quickly as we in the U.S. can attest. I'm not a 'survivalist' by any stretch of the imagination but I see VERY tough times ahead in the next 20 years or so and I'm here to tell you I'm keeping an extra few weeks of non-perishable foods in my pantry and I have about 20 oz. of old silver coins in my safe deposit at the bank for just in case.

[gaphugs]

There is no general sense of panic that I can tell - the principle reason for this is that no one knows what the potential for a euro collapse is and what would happen if it did collapse.

The main concern for people in Spain and Italy most notably is the banks collapsing, this has led to billions of euro being withdrawn and converted to dollors or the Krone. But if either of those countries banks were to go belly up it would effect all western currencies. I see no rush to convert cash to gold or any other scarce metal.

Greece, or Ireland for that matter, may well be far better off out of the Euro. If a decision to leave was taken, debt, savings Mortgages etc would be reverted to the old currency at a rate that would not be low against the dollar euro etc. But that has its advantages, Ireland is a country that would see a boom in tourism with a weak currency, it is also heavily reliant on export which would increase greatly with a weak currency - with the austerity measures lifted many feel the currency and country would bounce back rather quickly. The same can be said to a lesser extent with Greece.

all that being said, if Italy or Spain go bust - the ramifications would be huge. The EU does not have funds to bailout those countries, the IMF would be put under huge strain - that strain would be felt by all the countries that contribute to the IMF.

Europe, with advice from China and US has tried now to fix this problem a dozen times and each time they have failed. A treaty is being ratified at the moment which would effectively see Germany run the Euro - but there is a public mood shift in Germany, most no longer want to be the EU cash cow.

In conclusion - country leaders do not know how to fix the problem nor do they know what the implications would be if Greece left the Euro let alone a bigger country. That has filtered down to the people, uncertainty and no one to actually advice what the best thing is to do.

[X-Spectre]

There is no general sense of panic that I can tell - the principle reason for this is that no one knows what the potential for a euro collapse is and what would happen if it did collapse.

The main concern for people in Spain and Italy most notably is the banks collapsing, this has led to billions of euro being withdrawn and converted to dollors or the Krone. But if either of those countries banks were to go belly up it would effect all western currencies. I see no rush to convert cash to gold or any other scarce metal.

Greece, or Ireland for that matter, may well be far better off out of the Euro. If a decision to leave was taken, debt, savings Mortgages etc would be reverted to the old currency at a rate that would not be low against the dollar euro etc. But that has its advantages, Ireland is a country that would see a boom in tourism with a weak currency, it is also heavily reliant on export which would increase greatly with a weak currency - with the austerity measures lifted many feel the currency and country would bounce back rather quickly. The same can be said to a lesser extent with Greece.

all that being said, if Italy or Spain go bust - the ramifications would be huge. The EU does not have funds to bailout those countries, the IMF would be put under huge strain - that strain would be felt by all the countries that contribute to the IMF.

Europe, with advice from China and US has tried now to fix this problem a dozen times and each time they have failed. A treaty is being ratified at the moment which would effectively see Germany run the Euro - but there is a public mood shift in Germany, most no longer want to be the EU cash cow.

In conclusion - country leaders do not know how to fix the problem nor do they know what the implications would be if Greece left the Euro let alone a bigger country. That has filtered down to the people, uncertainty and no one to actually advice what the best thing is to do.

Exactly the sort of thing I was looking for, nice summary Gaps.

Taking that very last paragraph into account, wouldn't it be prudent to prepare in some way for major disruptions? If the Euro DOES in fact go bust, wouldn't it be wise (at least short-term) to be holding some cash in Dollars or some other currency or precious metal as a reserve for yourself? As I said, I'm NOT a survivalist or even really a 'prepper' but I'm old enough that my grandparents telling me about the Great Depression makes me naturally try and position myself to try and get through these type disruptions with as little pain to myself as possible, anyone do this too?

[haydaddict]

When and if Euro goes down in flames..which it wont happen...it will depend in which country you live in...it wont have the same effects in all countries!!!!
First of all...it wont happen overnight let alone in one month...or even year!!!!!
The dollar isnt a safe heaven that will protect you from a collapse of euro...cause the dollar is a currency without ''real'' value...USA just printed dollars to ease themselves out of trouble...its kinda what Greece cant do because we have Euro!
The only thing that one might say that can give you some kind of protection...is precious metals...like Gold...but even that its too expensive...and at this moment with all the uncertainty you see that its price isnt climbing up the way one might have expected!!!!
So even the markets arent sure what to do...

[X-Spectre]

When and if Euro goes down in flames..which it wont happen...it will depend in which country you live in...it wont have the same effects in all countries!!!!
First of all...it wont happen overnight let alone in one month...or even year!!!!!
The dollar isnt a safe heaven that will protect you from a collapse of euro...cause the dollar is a currency without ''real'' value...USA just printed dollars to ease themselves out of trouble...its kinda what Greece cant do because we have Euro!
The only thing that one might say that can give you some kind of protection...is precious metals...like Gold...but even that its too expensive...and at this moment with all the uncertainty you see that its price isnt climbing up the way one might have expected!!!!
So even the markets arent sure what to do...

The Dollar IS a (THE) reserve currency no matter how much others might like to deny it or break the hold it has on that status and you should realize that there is no (widespread) currency that is backed by anything other than 'full faith and trust' anymore and the U.S.' full faith and trust is backed by a HUGE network of economic, political and military complexes which support and sustain it, far beyond that of any other country, even China. Beyond that I wasn't suggesting ONLY the dollar as a hedge against problems, the Australian dollar or Yen or Yuan could be considered and as far as gold, I agree that as a practical matter it's hard for a person of moderate means to use as a reserve but silver is MUCH easier and would be easier to use in a crisis.

[A.tab]

Everything effects us badly, good or bad..
And btw even if dollar falls against other currencies it still climbs against ours...

I wonder why?

[gaphugs]

Exactly the sort of thing I was looking for, nice summary Gaps.

Taking that very last paragraph into account, wouldn't it be prudent to prepare in some way for major disruptions? If the Euro DOES in fact go bust, wouldn't it be wise (at least short-term) to be holding some cash in Dollars or some other currency or precious metal as a reserve for yourself? As I said, I'm NOT a survivalist or even really a 'prepper' but I'm old enough that my grandparents telling me about the Great Depression makes me naturally try and position myself to try and get through these type disruptions with as little pain to myself as possible, anyone do this too?

Each country is different. Ireland has a high rate of people with mortgages, I hear more of people using saving etc to clear mortgages and other debts as oppose to transfering savings into another currency. Many countries on the EU mainland tend not to invest in property as much but then again there is little threat to their domestic economy and are less likely to panic into buying gold or Dollars etc.

The Euro itself is not under threat to any great degree. It is crucial to the German and French economies and of course to the Dollar - so heaven and earth will be moved to keep the Euro. It is worth noting that the European Union was formed after the 2nd world war for the reason of preventing further wars - the argument being that if there are a lot of shared interests (including a currency albeit sometime later) then there is less chance of a war.

As was mentioned earlier, the US's Quantitative easing is not a consideration for anyone who chooses to switch currency to the Dollar - it doesn't seem to drastically change the global financial picture and seems to affect pricing / life internally.

Further more, would it even be more secure ? Germany, France, Luxembourg, Netherlands and Finland are all AAA ratings or there abouts - and these are, for the most part, Euro countries. Again, the lack of certainty or the prevalence of uncertainty means there is no right or wrong answer to the question posed.

[Lirva_Engival]

back in the day, Euro fanatics said that the UK would be doomed if it didn't join the common currency...nothing happened
conversely, they are now saying Greece is doomed if it leaves

in reality, European leaders are dithering because they won't admit that the one-size-fits-all concept of currency has failed
it's their baby and they won't let it die

[gaphugs]

You're comparing apples with oranges. the UK is in a double dip recession.. printing your own money hasn't worked. the UK may have its own currency, but its in the EU. I lol