- Prison Planet.com - http://www.prisonplanet.com -

Euro Area Headed for Break-Up, SocGen’s Edwards Says

Posted By admin On February 12, 2010 @ 4:32 am In Money Watch | Comments Disabled

Alexis Xydias
Bloomberg [1]
Friday, February 12th, 2010

Southern European countries are trapped in an overvalued currency and suffocated by low competitiveness, a situation that will lead to the break-up of the euro bloc, according to Societe Generale SA strategist Albert Edwards.

The problem for countries including Portugal, Spain and Greece “is that years of inappropriately low interest rates resulted in overheating and rapid inflation,” London-based Edwards wrote in a report today. Even if governments “could slash their fiscal deficits, the lack of competitiveness within the euro zone needs years of relative (and probably given the outlook elsewhere, absolute) deflation. Any help given to Greece merely delays the inevitable break-up of the euro zone.”

The euro has slumped 9.9 percent against the dollar since November on concern countries including Greece will struggle to tame their budget deficits. The common currency and stocks in the region dropped yesterday as European leaders closed ranks to defend Greece in a plan that investors said lacked details.

The euro fell for a third day against the dollar, to $1.3557 as of 10:35 a.m. in London. Europe’s recovery almost stalled in the fourth quarter, as gross domestic product in the 16-nation euro region rose a less-than-expected 0.1 percent from the third quarter, the European Union’s statistics office in Luxembourg said today.

Full article here [1]

“When the people find they can vote themselves money, that will herald the end of the republic.”Fall Of The RepublicBuy the DVD here [2]

Euro Area Headed for Break Up, SocGen’s Edwards Says  FOTR 340x1692 [2] 

Article printed from Prison Planet.com: http://www.prisonplanet.com

URL to article: http://www.prisonplanet.com/euro-area-headed-for-break-up-socgen%e2%80%99s-edwards-says.html

URLs in this post:

[1] Bloomberg : http://www.bloomberg.com/apps/news?pid=20601087&sid=aysDjUa__TRg&pos=6

[2] Buy the DVD here: http://infowars-shop.stores.yahoo.net/faofreprofba.html

[3] SocGen’s Albert Edwards: The U.S. Public Is About To Revolt: http://www.prisonplanet.com/socgens-albert-edwards-the-u-s-public-is-about-to-revolt.html

[4] Euro Zone Break-Up Still ‘Worst-Case Scenario’: http://www.prisonplanet.com/euro-zone-break-up-still-worst-case-scenario.html

[5] Most Accurate Foreign-Exchange Forecaster Says Euro To Parity By 2011: http://www.prisonplanet.com/most-accurate-foreign-exchange-forecaster-says-euro-to-parity-by-2011.html

[6] Euro zone falls into second recession since 2009: http://www.prisonplanet.com/euro-zone-falls-into-second-recession-since-2009.html

[7] Chance of Euro Death up 50%: Economist: http://www.prisonplanet.com/chance-of-euro-death-up-50-economist.html

Copyright © 2013 PrisonPlanet.com. All rights reserved.