Bloomberg June, 24, 2010
“... The trade recovery is now gathering momentum on the back of strong import demand in emerging markets,” the European Commission, the EU executive, said today in its quarterly assessment of the euro-region economy. “Euro-area exports will be further stimulated by the recent depreciation of the euro.”
... The 16-nation currency’s “real effective exchange rate has lost close to 10 percent” since its peak in October, the Brussels-based commission said. Against the U.S. dollar, the euro has fallen 19 percent since its Nov. 25 high, trading today at $1.2279 after reaching a four-year low of $1.1877 on June 7.
“The depreciation, if it persists, could boost exports by about 5 percent, with much of the gains taking place already in 2010,” according to the report....
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Comment: Sometimes I think it is not just ignorance but outright envy or hate or some other strange emotional condition that prevents some analysts to recognize the correct fundamentals of the euro zone. Krugman, certainly, is a freak. Recently in Israel, he said: “On the inflation side, the Germans do worry a lot about inflation and basically that’s because they’re crazy”. Dear Paul, better take care and watch out what will come upon you when the US will be mired in hyperinflation. History clearly shows that it is hyperinflation more than anything else that robs people of the last traces of rationality. Any economist who does not know about the dangers of inflation is not worth his penny least a Nobel Prize, even a fake one.
“... The trade recovery is now gathering momentum on the back of strong import demand in emerging markets,” the European Commission, the EU executive, said today in its quarterly assessment of the euro-region economy. “Euro-area exports will be further stimulated by the recent depreciation of the euro.”
... The 16-nation currency’s “real effective exchange rate has lost close to 10 percent” since its peak in October, the Brussels-based commission said. Against the U.S. dollar, the euro has fallen 19 percent since its Nov. 25 high, trading today at $1.2279 after reaching a four-year low of $1.1877 on June 7.
“The depreciation, if it persists, could boost exports by about 5 percent, with much of the gains taking place already in 2010,” according to the report....
Full text
Comment: Sometimes I think it is not just ignorance but outright envy or hate or some other strange emotional condition that prevents some analysts to recognize the correct fundamentals of the euro zone. Krugman, certainly, is a freak. Recently in Israel, he said: “On the inflation side, the Germans do worry a lot about inflation and basically that’s because they’re crazy”. Dear Paul, better take care and watch out what will come upon you when the US will be mired in hyperinflation. History clearly shows that it is hyperinflation more than anything else that robs people of the last traces of rationality. Any economist who does not know about the dangers of inflation is not worth his penny least a Nobel Prize, even a fake one.
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