The end of the Euro? back to the deutsche mark

[adilfx]

in a debate at bloom bergs offices in london the dialogue was quite dire for the euro, sceptics were out in full force to assess how good the euro has been for the region. Nigel Farage an ex city broker who runs UKIP was admant that the euro is breathing its last breath. if the euro fails what does that mean for the eur usd? the most liquid currency pair

 

[elisab]

in a debate at bloom bergs offices in london the dialogue was quite dire for the euro, sceptics were out in full force to assess how good the euro has been for the region. Nigel Farage an ex city broker who runs UKIP was admant that the euro is breathing its last breath. if the euro fails what does that mean for the eur usd? the most liquid currency pair

I think the last year has quite strengthened the Euro and with the advent of the banking union another brick in the construction of the political union has been added, so why should Germany come back to the old cuurency when it has enormous advantages with the new one?

 

[Liquid validity]

Just because the PIIGS are in the sh1t doesn't necessarily mean the end of the currency.
Germany as well as Austria, Finland, Monaco and maybe France
could conceivably keep the euro as currency even after PIIGs ejection.
http://ec.europa.eu/economy_finance/euro/
If it does fold, trade something else, deal with what does happen
rather than the speculation of the talking heads.
It won't fold overnight (assuming the whole project is doomed) so why worry about it.

 

[NVP]

the Euro will survive ...........although the senior membership may change onver the next few years.....Germany have a love hate relationship with it ....... in many ways they cant live with it but also cant live without it .........

N

 

[Liquid validity]

the Euro will survive ...........although the senior membership may change onver the next few years.....Germany have a love hate relationship with it ....... in many ways they cant live with it but also cant live without it .........

N

Thats pretty much my view as well, although I wouldn't say its survival
is a certainty - I'd give it a 65% chance of survival in one form or another.
Don't forget, if the PIIGS stay and decimate the ECB, would Germany want to
inherit the tattered remains of the ECB in such instance?
For me, the only realistic way the Euro currency can survive is PIIGS ejection.
Otherwise the ECB needs to be a bottomless pit...

 

[Purple Brain]

I seem to recall news in the trading press about the new Drachma during the height (depth?) of Greece's problems. Even Bloomberg apparently had, for a short while in June last year, a spot exchange rate for the new Drachma (XGD rather than GRD). I'll leave the humour pundits to hypothesise over the significance of the 'X'.

I'm sure just part of that organisation's contingency planning, but even so, it did send the twitterers a twittering.