Tuesday, March 30, 2010

Profit from the coming crash of the euro!



When world famous speculator George Soros made one billion dollars back in 1992 he bet that the British Pound would plummet. He knew that Britain would be forced to pull out of the Exchange Rate Mechanism, a system of fixed exchange rates that existed in Europe at the time. Pressures had been mounting in the British economy and it was forced to de-peg its currency from the other European currencies and allow it to float freely in order to avoid skyrocketing interest rates and an economic crash.

Soros shorted the Pound and cleaned up to the tune of ONE BILLION DOLLARS!

A similar thing is about to happen with the euro, only much, much, bigger!

Read on...

6 comments:

Matt Franko said...

Mike,

The differences in trade balances between the EMU nations really seems to exacerbate the situation.

This link here states: “Concerning the total trade of member states, the largest surplus was observed in Germany (+135.8 billion euro in 2009), followed by the Netherlands (+37.9 billion euro), Ireland (+37.4 billion euro) and Belgium (+12.8 billion euro).

The United Kingdom (-92.6 billion euro) registered the largest deficit, followed by France (-54.5 billion euro), Spain (-49.5 billion euro), Greece (-28.5 billion euro) and Portugal (-19 billion euro). ”

There are some very wide divergances in these numbers (from extreme surpluses to extreme deficits). Its like it is "dog eat dog/everyone for themselves" over there sometimes.

bubbleRefuge said...

Marshall thinks they should go back to the
Drachma. This would effectively lead to a default on Greek debt which I think would strongly support your short Euro thesis.

googleheim said...

THE AVERAGE WORKER IN GERMANY MAKES LESS THAN BRITAIN YET MORE THAN GREECE.

THE AVERAGE WORKER IN ITALY IS BETWEEN GERMANY AND GREECE, BUT ITALIANS SAVE A LOT MORE DUE TO MEMORY OF GRANDPARENTS.

SINCE THEY STILL LISTEN TO THEIR GRANDPARENTS WHO STILL LIVE WITH THEM ( ! ) - DUE TO THE LONGEVITY, THE YOUNG ONES ARE SCARED INTO SAVING THEIR MONEY.

ANYWAY, IF DEFICIT SPENDING IS SO GREAT - THEN THE COUNTRIES WITH DEFICITS SHOULD FORM A UNION AND THE THOSE WITH SURPLUSES SHOULD GO ALONE OR TOGETHER.

IS STILL LIVING OFF THE BACKS OF THEIR WORLD WAR II ADVERSARIES.

WHAT A CROCK.

Matt Franko said...

Goog,
To reiterate, these are trade numbers, not fiscal.

I was surprised to see Ireland as such a large net exporter and France as such a large net importer.

Im trying to get a better handle on how these trade imbalances within EMU may create Maastricht fiscal violations by identity.

The credit default hawks may be circling France soon....they better put the Beaugolais on sale!

To your point, you know it seems lately that only Germany is screwing the EMU up.

Resp,

TomatoBasil said...

The member states of the Euro zone should prohibit Germany from running a surplus beyond 6% of its GDP in any given quarter. And Germany's total surplus should not exceed some arbitrary number or else they should have to shutter export factories and hire more people in the government sector to adhere to these bizarre requirements. Force the local governments in Germany to be unproductive and buy only Beer Steins for immediate destruction or something random and sensless like the austerity plans for Greece. Its only fair since in order for Germany to save and run surpluses year after year, someone else has to be indebted to Germany, and as Greece has learned, that isn't welcome. Germany doesn't have to look too far back to see what sort of violence happens when you impose austerity measures on a country's finances.
Good luck with the Forex trade on this one, it is as if Europe is gift wrapping Soro's or Buffett-esque wealth for Mr. Norman's reaping. Too good to be true.

Matt Franko said...

TB,
I think youre on to something here. There has to be a way to point out to Germany the effects of their export bltizkrieg and not just in general, but with real reserve accounting. maybe then they will get it.

Resp,