The euro is becoming more of a joke every day. Why it fetches anything in foreign exchange markets is beyond me.
Today Germany's Chancellor, Andrea Merkel, said that the IMF would be needed as part of a Greek bailout.
Wasn't that the organization that was brought in time and again to inflict suffering and destroy small, emerging economies with its ridiculous austerity plans?
The sight of the Eurozone, with a total economic output larger than the U.S. calling in the IMF to help one of its neighbors would be like America turning to the IMF to bail out California. Americans would go livid at the very idea!
Yet that is the stupidity that is currnetly going on and, yet, the euro is still amazingly 30% stronger than the US dollar. (Whoever said markets were rational??)
Think about it...what is the total balance sheet of the IMF anyway? Possibly $500 billion, if that? And it's being asked for help when the Eurozone has a $15 trillion economy!!!
Moreover, the IMF is not a currency issuer. I cannot "print" euros as the ECB can to help member states. The whole thing is getting to be like a Marx Brothers comedy.
ANYONE who reads this blog is INFINITELY more informed and capable of solving Europe's problems than the current leadership over there. (That's why you'll never get the job!)
Here's the problem, though. The same, idiotic mentality is pervasive in the U.S. I've even heard some lawmakers talk about America possibly needing help from the IMF. (Maybe that dope, Judd Gregg.)
Two things are for sure:
1. Unless Europe gets its head out of its ass soon, the euro will be worthless. (See how you can make money on that, here.)
2. Things are not likey to get materially better in the U.S. anytime soon.