"Euros Accepted" signs pop up in New York City

[Ikutiera]

NEW YORK (Reuters) - In the latest example that the U.S. dollar just ain't what it used to be, some shops in New York City have begun accepting euros and other foreign currency as payment for merchandise.

Euros Accepted signs pop up in New York City | Markets | Bonds News | Reuters

[Menydh]

They are going through a time of inflation and currency devaluation. We'll get there too. The euro is over-inflated.

[Marcus Marulus]

Originally Posted by Mynydd

They are going through a time of inflation and currency devaluation. We'll get there too. The euro is over-inflated.

That is correct, I agree. It is clear that euro is umbilically tied to the dollar.

[Menydh]

Well, the dollar has lost much ground as a standard in the last years. What I would worry is about the artificial high value of the euro currency at present. Which is not in accordance with the industrial productivity in Europe, but with financial speculative activity. As inflation soars, think of the consequences over imports if the currency bubble bursts. And since the EU policy has been unprotective towards European production of basic goods and it has actively encouraged imports from third countries.. we could be seeing something really interesting.

[Kernunnos]

If I Had any money to protect i would buy gold, at any price.

The tempest that is coming is still in its infancy, it has still to grow up to its malignant potency ...

[Menydh]

Originally Posted by Breha

If I Had any money to protect i would buy gold, at any price.

The tempest that is coming is still in its infancy, it has still to grow up to its malignant potency ...

Right. Add to it that the increasing price of petrol will add to transport costs over import goods, adding to the inflation. The delocalisation of the European industry is already in a much advanced state and some sectors are being left to rely heavily on imports to survive. This delocalization has allowed other countries to gain a knowledge to start producing their own goods without the need of European technology or management. Most noticeable China and India for their sizes, but not only those two.

But I would buy land, or invest in sectors such as the alternative energies.

[Kernunnos]

Originally Posted by Mynydd

Right. Add to it that the increasing price of petrol will add to transport costs over import goods, adding to the inflation. The delocalisation of the European industry is already in a much advanced state and some sectors are being left to rely heavily on imports to survive. This delocalization has allowed other countries to gain a knowledge to start producing their own goods without the need of European technology or management. Most noticeable China and India for their sizes, but not only those two.

But I would buy land, or invest in sectors such as the alternative energies.

I totally concur on land: big industrial families in Europe like the Benetton and rich american movie stars are actually buying large estates in Argentina, preparing to produce what will be in highest demand in times of crisis: corn and meat.

Cellphones and computers will be the last thing in demand when pockets will be desperately empty.

I have the sensation we are on a roller coaster, a very mad one, and we are preparing for the worstest possible series of loops.

[bombadillo]

Originally Posted by Mynydd

Well, the dollar has lost much ground as a standard in the last years. What I would worry is about the artificial high value of the euro currency at present. Which is not in accordance with the industrial productivity in Europe, but with financial speculative activity. As inflation soars, think of the consequences over imports if the currency bubble bursts. And since the EU policy has been unprotective towards European production of basic goods and it has actively encouraged imports from third countries.. we could be seeing something really interesting.

It's not euro strength: it's dollar weakness. And the weakness of currencies (such as the Chinese remnimbi) that stay tied to the dollar (but for how much longer?). Kuwait and Qatar have already broken the link between their currencies and the dollar (the link meant they were importing too much inflation from the USA). Unlike the US, EU is protective towards its industry: it is not running up massive trade deficits -- indeed this is what makes the euro a safe haven and reassures jittery investors. The currency that's next on the hit list is pound sterling -- the UK has been running up big trade deficits, and its economy is too closely tied to US-orchestrated global financial flows: as the US weakens, so does its British sidekick. Expect pound to reach parity with the euro within two or three years.

[Menydh]

Originally Posted by Breha

I totally concur on land: big industrial families in Europe like the Benetton and rich american movie stars are actually buying large estates in Argentina, preparing to produce what will be in highest demand in times of crisis: corn and meat.

Incidentally someone in a conversation today quoted Baron Rothschild saying that "the time to buy is when there is blood in the streets".