Published: Tuesday, 13 Dec 2011 | 12:42 PM ET

By: Reuters and CNBC.com

The euro dropped to an 11-month low against the U.S. dollar on Tuesday, with selling set to continue on concerns about a lack of unity among European nations to tackle the debt crisis and fears of more credit rating downgrades.


Losses accelerated after the euro broke below its October low at $1.3145, followed by $1.31, and triggered a wave of automatic sell orders.

Further key support levels lie around $1.30 and $1.2860, the 2011 low.

Germany's Angela Merkel has rejected any suggestion of raising the funding limit of Europe's future bailout fund, the European Stability Mechanism (ESM), sources in her conservative bloc said after a meeting with the chancellor. But analysts were quick to point out that it was not the first time that Merkel had made such a comment.

Peter Boockvar, a market strategist at Miller Tabak, said in an email that the German Chancellor made her position on this clear immediately after the summit of European Union leaders' summit in Brussels last week.

The ESM, which will replace the current EFSF bailout fund and should come into effect from the middle of next year, will have an effective lending capacity of 500 billion euros.

European Council chief Herman Van Rompuy said on Tuesday that a review of whether funding was adequate would be completed in March.

"It continues to show how difficult it is to orchestrate all the moving parts of these different sovereign nations in Europe and try to get them all under one kind of agreement," said John Doyle, currency strategist at Tempus Consulting in Washington.

Discord was also present at last week's European Union summit as Britain shunned an agreement reached by up to 26 EU nations to pursue fiscal integration as part of efforts to tackle the debt crisis.

Against the yen, the euro slipped to a two-month low of 101.74 on Reuters data before rebounding to 101.93, down 0.8 percent on the day.

"The euro has come a long way to multi-month lows but frankly I am not tempted to take profit," said Neil Jones, currency analyst at Mizuho Corporate Bank in London. "I am not certain what future euro negatives lie ahead. I am just certain there will be more."

2010 December 13 : 1 euro = 1,3385 dollar
2011 December 13 : 1 euro = 1,302 dollar

1 year of trouble of the euro = minus 2,8% against the dollar.

Your currency is as shit as ours. But at least, we don't print billions of toilet paper every month.

12870 another floor will drop

if i can get it by friday Ill be extra sweet for tuesday

just cherry

2010 December 13 : 1 euro = 1,3385 dollar
2011 December 13 : 1 euro = 1,302 dollar

1 year of trouble of the euro = minus 2,8% against the dollar.

Your currency is as shit as ours. But at least, we don't print billions of toilet paper every month.

US_Kindergarden wrote:

2010 December 13 : 1 euro = 1,3385 dollar
2011 December 13 : 1 euro = 1,302 dollar

1 year of trouble of the euro = minus 2,8% against the dollar.

Your currency is as shit as ours. But at least, we don't print billions of toilet paper every month.

if it wasnt for that toilet paper europe would of collapsed already


youre welcome

US_Kindergarden wrote:

2010 December 13 : 1 euro = 1,3385 dollar
2011 December 13 : 1 euro = 1,302 dollar

1 year of trouble of the euro = minus 2,8% against the dollar.

Your currency is as shit as ours. But at least, we don't print billions of toilet paper every month.

Idiot, the reason that the two currencies remain close to each other is because both sides are trying to outdo each other in printing

billions of toilet paper every month

But you clowns are going to have to outdo us, because last time I checked Deathtroit was a city of a couple hundred thousand asshole niggers, whereas, Greece, spain and italy are entire countries of millions.

no theyll never take advice from the americans

jeanver french banking friends dont wanna know how america is running its banks

European policymakers are taking a page out of their American counterparts' playbook to address their burgeoning sovereign debt crisis, banking analyst Dick Bove said.



The European Central Bank already has begun its own version of quantitative easing, the program used by the Federal Reserve to recapitalize banks during the financial crisis that exploded in 2008, said Bove, vice president of equity research at Rochdale Securities.

At the same time, Bove said the ECB is well on its way to a "partial nationalization" of European banks, in which it will take equity stakes in the institutions as it seeks to stabilize the financial system.

The end result could be a boon for banks in the US and elsewhere that will benefit from the pain their European competitors will have to endure, Bove believes.

"The suffering in Europe may impact the rest of the world. However, there will be significant opportunities for non-Euro banks if this train of events occurs," Bove said in a research note. "The Euro zone banks will now become quasi utilities. Thus, the non-Euro zone banks will begin to fund the private sector companies that the Euro zone banks cannot handle."



Comparisons between the current state of European banking, which is bracing against the losses the system will take from likely national debt defaults, and the situation in 2008 when U.S. banks took massive writedowns from subprime mortgage losses, are easy to make.

Both suffered as much or more from illiquidity as insolvency, and solutions to both situations focus heavily on government backstop measures to ensure that capital remains flowing.

A move starting Dec. 21 that will allow European banks to borrow at low rates and in turn buy up sovereign debt looks, to Bove, "suspiciously like quantitative easing ."

In the U.S. Fed's QE measures, it slashed interest rates to near zero and bought up mortgage securities and government debt to recapitalize the banks and get money flowing through the system.

The European version also includes low rates and incentives for banks to buy sovereign debt.

A notable difference: The ECB will not buy the debt itself, allowing it to avoid navigating the political minefield in which the Fed found itself.

"The reason that the ECB is not opening the flood gates to buy sovereign bonds in unlimited amounts is due to what happened in the United States," Bove said. "In this country, once the Federal Reserve made it known it would use quantitative easing to buy Treasury debt, the Congress abandoned any attempt to deal with U.S. deficit. The ECB has learned this lesson and is not letting European governments slide back into their old habits. It wants some discipline." GOOD LUCK WITH THAT

In exchange for the loans, European banks will have to sell equity and comply with stringent capital requirements.

"European banks must sell equity and buy sovereign debt. They will be forced by these parameters to abandon private sector offerings and private sector clients," Bove said. "The clients that will be the first to go will be those outside each bank’s country."

Similarly, Bove sees two possible solutions coming to address the complications brought about because the widely disparate European nations must abide by the rules of the same currency.

He predicts a possible "pseudo-euro" of lower quality issued to heavily indebted countries, which then can default on their obligations and devalue their currencies in order to cheapen their debt.

In the second case, he sees "partial nationalization" as governments purchase stakes in the European banks, in much the same way the US government took positions in Wall Street's largest financial players.

"This program may actually start today with a Commerzbank sale of stock to the German government," Bove said. "The problem with this approach is that the private sector is starved for funds and this causes a significant recession of greater than normal longevity."

For Bove, all of the scenarios point towards opportunities for US banks, which have gotten clobbered this year over concerns that the European crisis will spread across the Atlantic and infect the American financial system. He said the situation will be much like the 1990s when US banks took clients from failing Japanese institutions.

"This is not a phenomenon that will begin; it began months ago," he said. "The fear of contagion is a myth. The ability to gain market share is reality."

eventually the union will split or disintegrate

theirs no way around it
and its coming shortly
is a two euro europe still the europe of eu armys dreams ?

nope

its not even europe

its two factions

US_Kindergarden wrote:

2010 December 13 : 1 euro = 1,3385 dollar
2011 December 13 : 1 euro = 1,302 dollar

1 year of trouble of the euro = minus 2,8% against the dollar.

Your currency is as shit as ours. But at least, we don't print billions of toilet paper every month.

Then why is the dollar rising in value against the euro?

Because Europeans are buying dollars because they are scared shitless....which is as dumb as shit. The dollar and the euro are in a race to the bottom.

This will be worth more than the Euro in a year or so

no

they're dancing around the elephant and will be for a long time
no wait

they haven't been forced into it by the markets because its only been going on FOR YEARS
no wait .... twenty minutes later

they're not following what the Americans did but they are but they're not wink wink but they are wink but they're not wink wink ...... now in an enlightened euro way.... wink


what a mess

printing

it opens up a whole other can of worms for the euro .... this has also been beaten to death and the one main reason thatt it will cause them bigger headaches down the road

ITS not the worlds reserve currency

thats the US DOLLAR

of course it/will put downward pressure on its value just like with the dollar BUT
its not the dollar


it comes no where near how entrenched the dollar is as the worlds reserve
from central banks, to a mud hutter in Africa sitting on a pile of 5 dollar bills , to carrefour settling up with a supplier in Honduras , to fuckin oil

and thats the tip of the iceberg


not to mention if they print wheres the incentive to slash budgets?

ya mean we're actually gonna see a french governemnt get tossed because they missed the 3 % ? they ain't getting that far

if they make it that far Ill kick a cat

slashing? thats gonna go over real well when shit like unemployment benefits go from two years to 3 months or whatever the fuck it is in that mime riddled dump they call fwance

the biggest bestest union has soothe the nationalist beast?.....from brussels ?
pfft




karma for dewi
Tuesday, December 13, 2011

European Commission President José Manuel Barroso told MEPs that the demands the UK put forward at last week’s EU summit represented a “risk to the integrity of the internal market”, adding that what came out of the meeting of EU leaders was “not an agreement at 17-plus, but an agreement at 27-minus.” However, the agreement continues to create domestic divisions around Europe.

Over the weekend, Danish Foreign Minister and leader of junior coalition partners the Socialist People's Party, Villy Søvndal, indicated that it could be difficult for the newly elected centre-left government to push through its economic programme if subject to the rules entailed in the pact. Today, he appeared to be contradicted by Helle Thorning-Schmidt, the country’s Prime Minister and leader of the Social Democrats, who is quoted by Jyllands Posten saying, “We’ll now analyse the agreement and discuss with the foreign policy committee and the European Scrutiny Committee [in parliament].” Meanwhile, it remains unclear whether the agreement would have to be subject to a referendum in Denmark. An opinion poll for Jyllands Posten shows that 53.9% of Danes want the pact to go to a public vote, while 22% think it will solve the euro crisis.

It also remains unclear whether the Swedish government will get the majority needed to get the package through Parliament, as opposition parties are currently opposing the deal, while the Swedish centre-right government remains split. Junior coalition partners, the People’s Party, have argued in favour, but Swedish Prime Minister Fredrik Reinfeldt has said, “It can appear a bit strange to join something that can be seen as taking part in the euro”, according to Svenska Dagbladet. Meanwhile, over 80% of Swedes would vote No to the euro in a referendum, compared to 42% two years ago, while the support for EU membership has dropped from 55% to 47% in a year, according to a new poll from Statistics Sweden.

In Poland, both the Democratic Left Alliance and the Law and Justice parties have warned that according to the Polish Constitution, any agreements concerning the transfer of sovereignty and responsibility require a 2/3 majority in both houses of the Polish Parliament, which the government cannot be sure of, reports Gazeta Wyborcza. Law and Justice leader Jaroslaw Kaczynski said that if such a majority was not secured, his party would consider overturning it if it got back into power. Opposition politicians also criticised the possibility of Poland contributing funds to the IMF to assist with the euro rescue. However, the Polish government’s spokesman Pawel Gras asserted that the agreement would only be binding if Poland were to join the euro.

The Finnish Grand Committee has criticised the country’s Prime Minister Jyrki Katainen for potentially over-stepping his mandate in the negotiations in Brussels last week, and have initiated an inquiry into what the deal would mean for Finland, reports HBL.fi. It remains unclear whether the agreement will pass a vote in parliament, with the main sticking point being majority rule for the activation of the eurozone’s permanent bailout fund, the ESM, which could violate the country’s constitution.

The situation in the Czech Republic also remains uncertain. Czech Prime Minister Petr Necas told his European counterparts that he would seek approval from parliament, but then told the Czech press, “It wasn't possible to sign up to this international agreement for a number of reasons. But the main reason was this – nobody knows what's in it,” reports the BBC. Czech Finance Minister Miroslav Kalousek yesterday expressed concerns over the Czech share of the new bilateral loans to the IMF, saying, “It would be unwise to completely refuse" the requested loan for the IMF but the amount sought is "extremely high,” estimated by the Czech Central Bank to be equal to 10% of official Czech reserves. Czech President Vaclav Klaus also suggested the Czech Republic could not afford the contribution.

Separately, French Prime Minister François Fillon yesterday dismissed as “completely irresponsible” French Socialist leader François Hollande’s declaration that he would try to re-negotiate the agreement if he were to win next year’s presidential elections, reports Le Point.

In the Netherlands, the Social Democrats have backtracked on their previous request for early elections to be called if further transfers of sovereignty to the EU were to take place under last week’s agreement. The agreement is expected to be completed by March, at which point Ireland will decide whether it needs to be put to a referendum, reports the Irish Times.
Europaportalen Svenska Dagbladet Jyllands-Posten Jyllands-Posten2 BBC Jornal de Negocios Le Point Gazeta Wyborcza Gazeta Wyborcza 2 Gazeta Wyborcza 3 Gazeta Wyborcza 4 HBL.fi Irish Times

David Cameron defends his use of veto;
Sarkozy: Europe must move towards more regulation
In his statement on last week’s EU summit in the House of Commons yesterday, David Cameron argued that assenting to a new EU Treaty would have meant an unfair balance between eurozone and non-eurozone countries being “hardwired” into EU law, adding that allowing the new euro-plus group to make their own rules was “not without risks”, but was preferable. Cameron also said, “I don’t see any contradiction between being incredibly positive and constructive but also having a bottom line.” Nick Clegg did not attend the statement.

the euros

Americans no mater where we're from no matter what we call each other

lets say here on this website fer instance

we're not very nice

no matter your background minus mad poet hes a fuckin cambodian ya couldnt convince me otherwise

no matter what like most of the countries population we all think of each other as
"Well thats just another American ."

even the commie leftist ya wanna gas ? sure you'll call them names but what are they ?
" Americans "

the euros can never grasp that ,they will never duplicate it ,nor will they ever be able to legislate it.

cmon
its Europe
we have an easier time of seeing them as just another euro .... them not so much
know wha I'm saying

Separately, French Prime Minister François Fillon yesterday dismissed as “completely irresponsible” French Socialist leader François Hollande’s declaration that he would try to re-negotiate the agreement if he were to win next year’s presidential elections, reports Le Point.

lol france
theyre not gonna make it

I have a load of pesetas and punts.

Watching the EU die is fun.

So, dear Eurps, what do you really think will happen?

Don't answer 'Nothing'.

Something has to give. The 30% value difference of the Euro between the productive North and the destructive South, the real problem, is the only thing the elites will not address. It can't last.

So, what's the solution. If the Euro and the EU are to survive, as you believe, how is that going to happen?

trainer wrote:

So, dear Eurps, what do you really think will happen?

Don't answer 'Nothing'.

Something has to give. The 30% value difference of the Euro between the productive North and the destructive South, the real problem, is the only thing the elites will not address. It can't last.

So, what's the solution. If the Euro and the EU are to survive, as you believe, how is that going to happen?

How do you do in Usa between productive states and destructive states?

Competition forces a state that has been run to the ground to shape up and get its house in order, simple.

Look at New Jersey, for example.

Awful socialist government for decades.

They didn't beg for bailouts or have dozens of worthless meetings. They got the socialists who were the problem out of power.

Now New Jersey has a vibrant conservative governor that has balanced the budget and is attracting business to the state.

I read today that Coca-Cola opened a new plant in South Brunswick.

A step in the right direction.

Euro values fell today like a French Telecom worker leaping off a tall building when asked to put in a honest day's toil.

And the end will be equally messy and just as fun to watch.

It's the only good news for our economy recently.

ollliver wrote:

It's the only good news for our economy recently.

The next time you fill your tank, please feel how good the news is.

US_Kindergarden wrote:


2010 December 13 : 1 euro = 1,3385 dollar
2011 December 13 : 1 euro = 1,302 dollar

Here, Fixed it for you,...

US_Kindergarden wrote:


2010 December 13 : 1 euro = 1,3385 dollar
2011 December 14 : 1 euro = 1,2971 dollar

SevenEleven wrote:


This will be worth less than the Euro in a year or so

FYP

letarsier59 wrote:

ollliver wrote:

It's the only good news for our economy recently.

The next time you fill your tank, please feel how good the news is.

I don't have car
The too strong Euro is one of the reason of our actual crisis particullary for the european southern countries who were reliant on low price export.

.

Apples and Oranges

The states are Federalized. There is a central bank to mitigate problems. Vermont (50th) and California (1st) and the others add their GDPs together. Think of them as provinces within a single country...the effect is the same. You wouldn't be effected that much if a province was a known slacker...you'd just make jokes about them.

At the moment, only US cities have gone bankrupt and have been supported by the State and Federal government...which can print money.

Your treaty specifically blocks that much central union. The EU is a monetary/trading construct of different countries, not a Federal government of disparate states.

Hadrian wrote:

Competition forces a state that has been run to the ground to shape up and get its house in order, simple.

Look at New Jersey, for example.

Awful socialist government for decades.

They didn't beg for bailouts or have dozens of worthless meetings. They got the socialists who were the problem out of power.

Now New Jersey has a vibrant conservative governor that has balanced the budget and is attracting business to the state.

I read today that Coca-Cola opened a new plant in South Brunswick.

A step in the right direction.

Don't listen to Hadrian, simple. Those cubans and coca-cola, you know.

My progressive CT governor has raised taxes and everyone with a criminal enterprise is leaving New Jersey for the The Constipation State.