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IVNORD

Forum Senior Member

Joined: December 13 2006
Location: USA
Status: Offline
Points: 1191

Topic: To our European friends
Posted: January 10 2008 at 10:31

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Here's an entertaining read on the upcoming global inflation. These people are Libertarians and a lot of stuff on their site is unrealistic, but from time to time they hit the nail on the head.

http://www.mises.org/story/2839

Read the short introduction where they talk about Central Banks and the inflation talk in Europe. It looks like the inflation starts biting regardless of the strength of the Euro over the dollar. The monetary advantage our European friends have experienced over the past 2-3 years may be coming to an end soon.

Not to promote tourism, but you'd better plan your dream trip to the US while the Euro still makes economic sense for you. See you soon

Sean Trane View Drop Down

Special Collaborator

Prog Folk

Joined: April 29 2004
Location: Heart of Europe
Status: Offline
Points: 20585

Posted: January 11 2008 at 05:43

IVNORD wrote:

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Here's an entertaining read on the upcoming global inflation. These people are Libertarians and a lot of stuff on their site is unrealistic, but from time to time they hit the nail on the head.

http://www.mises.org/story/2839

Not to promote tourism, but you'd better plan your dream trip to the US while the Euro still makes economic sense for you. See you soon

Hi IVNORD >> long time no read!

Happy New Year!

Haven't read this link you've given, but this economic advantage you're giving the Euro isn't exactly giving us a real advantage. One of the few advantages that I'll give you is indeed buying in the US and travelling there is rather cheap for us European. The second advantage is that the striong Euro has indeed smoothed over the oil prices hike, which indeed dictates inflation.

But on the other hand a strong Euro has been detrimental to our external commerce and renders European goods unreal expensive and untouchable for most Americans. The US dollar has been kept purposely and artificially low by the US central banks precisely to keep this commercial bonus over Europe.

Unfortunately, this politic is very dangerous, because once it will break down (and in all likelyhood very soon with the US mortgages scandals), it's going to bring a global crisis that will hurt everyone. It's still time to revert those low interest rates keepig the dollar low, and maybe avoid a black thursday that could resembe 1929 more than 1987... in terms of small wallets being ruined.

let's just stay above the moral melee
prefer the sink to the gutter
keep our sand-castle virtues
content to be a doer
as well as a thinker,
prefer lifting our pen
rather than un-sheath our sword

IVNORD

Forum Senior Member

Joined: December 13 2006
Location: USA
Status: Offline
Points: 1191

Posted: January 12 2008 at 14:47

Sean Trane wrote:

IVNORD wrote:

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Here's an entertaining read on the upcoming global inflation. These people are Libertarians and a lot of stuff on their site is unrealistic, but from time to time they hit the nail on the head.

http://www.mises.org/story/2839

Not to promote tourism, but you'd better plan your dream trip to the US while the Euro still makes economic sense for you. See you soon

Hi IVNORD >> long time no read!

Happy New Year!

_popupControl(); Sean, how are you man! Happy New Year and best of luck!

I don't linger on the forum as I used to. You don't seem to be a frequent guest either. I miss your sharp toungue.

Don't bother with the article. there's not much interesting except for the fact the European Central Bank blame the unions, demamding salary increases, for the upcoming inflation. As usual, the perpetrator assigns the blame on the victim. I just wanted to point out that the inflation is coming and it is going to destroy the Euro the way it's destroying the dollar.

Your travel (Europeans) to the US must be a bargain, it hasn't happened in a long time. I hear that a lot of Eouropean dollars are coming back to the US buying Real Estate and other hard assets. The dollar is cheap, but I dont think it's intentional: the supposed artificiality is rather a necessety, because our Fed Reserve prints the paper like there's no tomorrow to pay for the war. At this pace we may go bankrupt in a few years. I try not to draw parallels with 1929, it's scary.

With gasoline, I think you don't feel the pinch because of your high taxes besides of all. I was in Scandinavia 2 years ago, and I was appalled by gas prices. At the time the wholesale price was under $2, and in Iceland and Norway the retail was around $8, with Sweden and Denmark only a buck or so lower.